Risk of Exchange rate
Exchange market is running for 24 hours depending on economic conditions and interest-rate trends in each country. If the exchange rate went in the opposite direction from what you had expected, foreign exchange losses may be incurred. The exchange rate may have short-term or short intense volatility. Customer should carefully consider as the feature in the Foreign exchange margin trading (FX trading), that there is a possibility that the smaller amount deposited for margin than the actually trading (notional) amount may cause big profits as well as big losses. Especially in high leverage settings (in case of small amount of money deposited for the notional trading amount), small price movements will make a big loss of ten thousands of dollars or even more.
Risk of the Margin Call
"FX TROLL", the service of FX trading we provide here, has a Margin Call rule which is one of our risk management in order to prevent you from the risk of occurrence of larger losses than margin. Your Positions will be measured at fair value based on exchange rate at regular time intervals determined by the Company. We will automatically close out all of your positions in case Usable Margin reaches our standard to set Margin Call. In this case, it is still possible for the Customer to have larger losses than deposit and his Trading Account negative.
Risk of using electronic trading systems
Using electronic trading system, if the Customer input orders or instructions he doesn't purport to by mistake, the orders may or may not be executed as the orders are accepted directly by Server. Electronic trading system has a risk of inability to trade temporary or during some period as a result of many factors including, without limitation to poor Internet connection either on the side of the Customer or the Company or both, the failure, malfunction or misuse of the Trading Platform software/hardware, or the failure of communication or information. Exchange rate displayed on the electronic trading system is not always the accurate view of the prevailing market price. If the market changes rapidly, the exchange rate on electronic trading system may have a slight delay which may lead to difference between the exchange rate on electronic trading system rate and the prevailing market price. The Customer needs to be aware of the risk of large losses as a result of misuse of any information including, but not limited to ID and/or Password for electronic trading by third party if stolen or leaked by eavesdropping.
If your order was not accepted because of the system failure and it couldn't be confirmed by the Company, or if you miss the opportunity to place any order (lost opportunities) because of delayed notice of execution, etc. we are unable to estimate the value of the losses as the time and the value at which the order should have been executed cannot be specified. In this case the loss can not be covered by the Company in accordance with the provision in the Operative Agreements.
Risk of exchange rate fluctuations over the weekends
The market may start on Monday with the exchange rate which greatly differs from the closed rate on Friday under the influence of various circumstances changes during the weekend when Trades are generally not going in the foreign exchange market. In this case, Stop Loss order and/or Margin Call may be executed exceeding the expected losses or the principal funds or deposit by the Customer.