It is our policy to provide our clients with the following risk notice regarding leveraged investments and trading on margin of CFDs and Forex contracts. The following document aims to be comprehensive but cannot be complete.
Leveraged products carry a high degree of risk, and you should not invest in such products unless you understand their nature and your own exposure to risk, subject to your circumstances and financial situation. Only invest that funds you can afford to lose.
Although leveraged products can be used for risk management, they are not necessarily suitable for all investors.
Investing in CFDs and Forex contracts entails the same risks as investing in futures or options. Past performance is no guarantee of future performance, since future performance of underlying assets is unpredictable.
Leveraged products require payments against the purchase price, and you may sustain a rapid and/or total loss of the margin required to maintain a position. Margin requirements could increase without notice. If you fail to fulfil margin requirements within a set time, your position may automatically closed regardless of it P/L and you will be responsible for the resulting deficit.
Leveraged products are traded off-exchange. They are over-the-counter (OTC) transactions that are non-transferable. Thus, you may enter into trades directly with WiseTrader and those trades can only be closed through WiseTrader. You cannot transfer or sell an open position to another broker.
Before trading, examine all commissions and charges for which you are liable. If these are expressed as a percentage of the contract value or the initial payment, or else as a function of spreads and/or rollover charges, etc, establish what these charges translate to in money terms.
Stop Loss orders are not guaranteed but subject to gapping or slippage that may occur when underlying markets are volatile and prices moves rapidly past the stop loss price. In such a case, next available price will be fulfilled.
Profits or losses from transactions and/or rollover charges denominated in a currency that is not the base currency of an account may be subject to fluctuations in foreign exchange rates, particularly in Forex contracts.
Taxation on leveraged investments are subject to local laws, rules and regulations. The investor is responsible for any stamp duty or taxes due in respect of profits.
All positions and monetary transactions (deposits and withdrawals) take place on an electronic platform. Although electronic communication is considered a reliable medium of communication, no such system is guaranteed to be totally reliable at all times.
Although all Clients funds are deposited in segregated accounts that are separate from WiseTrader’s company accounts, we cannot guarantee total protection in the event of insolvency on the part of our bank.
Profits and losses resulting from trading CFDs and Forex contracts are legally enforceable by both parties.
We strongly advise that you read our Terms & Conditions.