Risks of investing in Forex

Forex trading risk

* Capital investment in any financial instrument market involves risk, however, you decide you want to take the risk. At any time you stop operations and withdraw your money without penalty. You have this option for 24 hours a day. Because you can also see the minute operations from the Internet.

* Leverage is a double-edged sword, though there is the possibility of increasing the percentage of earnings, it is still possible to increase the percentage of losses. For this reason you should use a moderate leverage or leave your capital management experts with experience, which generally have sophisticated mathematical models that analyze continuously the international market and through the use of powerful computers try to figure out when and what buy or sell currency, making this grant a greater chance of success. Experienced Expert advice increases your chances of generating real profits in the medium and long term.

* Although there are not really entry and exit fees, there is a "spread" for this type of operation, ie there is a purchase price and a sale. These spreads are constant, vary and are not very close. According to the broker, a spread of 0.0002 or $ 0.0003 (2 to 3 Pips) is common to make a difference by buying and selling in the euro for example. A higher spread decreases your chances of profit.

* Trading foreign exchange is speculative and may involve the loss of capital and therefore, funds placed under Managed Accounts handled personally or should be part of venture capital funds that if lost will not significantly affect the financial status of the person . This is not a solicitation to invest and you should consider your financial situation carefully according to what they deem appropriate for you before making any investment or entering into any transaction.

Historical Performance

* Experience or past results do not guarantee similar future results and yields may vary based on market conditions. Forex is a market in equities, so you can make money but also lose part of your investment. A good strategy, but increases the chances of achieving good results, does not guarantee profit of any kind. Although in the past the forex trader has obtained high yields, you should take into account that at times can also generate negative results. If you choose to use the Managed Account service (Managed Account) we suggest you view the history of earnings generated by the company, the strategy employed, the "stop loss" used, the limit to close the positions and what percentage of capital is risky each transaction.

* It is not intended to indicate that by following the signs or trading strategies suggested by a system, this will necessarily lead to profits. Investors may incur into a series of consecutive losses and substantial equity casualties that may reduce their funds before any significant accumulation of earnings occurs.

Demo accounts hypothetical returns

* Hypothetical performance results may have many inherent limitations. It is not intended to indicate that any account will or may achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance and actual results subsequently achieved by any particular trading program.

* One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. Hypothetical transactions do not include financial risk and no hypothetical trading record can predict the impact on financial risk in actual trading.

* There are many factors related to markets in general or the implementation of any specific trading program that can not be fully included in the preparation of hypothetical performance results and all of them can affect the actual results of operations adversely.

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