High Level of Risk

Foreign exchange trading carries a high level of risk, and is not suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and knowledge of how the forex markets operate. You should be aware of all the risks associated with foreign exchange trading before investing in the currency market. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not trade with money that you cannot afford to lose.

Individual Suitability

Some people are not suited to trading the foreign currencies, which can be highly volatile. For some, the stress of trading clouds their judgment. Many traders come with false expectations of the profit potential available in the foreign currency markets. Some lack the discipline required for trading. Currencies may appear exotic or less familiar than traditional markets (i.e. equities, futures, etc.), but the rules of finance and simple logic are still valid. Short term trading is not an amateur's game and should not be considered a route to immediate wealth.

Inflated Expectations

The tendency to hope for and seek extraordinary gains leads to taking extraordinary risks. Trading with large risk inevitably leads to inconsistent trading performance and often, large losses. Trading currencies is not easy, and many traders with years of experience still experience substantial losses. One must realize that trading takes time to master and there are no short cuts to this process.

Large Leverage

The low margin deposits normally required by many brokers permit an extremely high degree of leverage. This can be an enticing aspect of the currency markets. Accordingly though, a relatively small price movement in a foreign currency may result in immediate and substantial loss to the trader. For example, if a trader purchases $1,000,000 of a currency and, at the time of purchase, has $50,000, or 5% of the price of the amount purchased in his or her account, a 5% decrease in the price of the foreign currency would, if the position were then closed out, result in a total loss of the margin deposit. Thus, like other leveraged investments, a currency trade may result in losses in excess of the amount invested.

FX-Strategy Market Opinions

Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary, and does not constitute investment advice. FX-Strategy, Inc. will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Internet Trading Risks

There are risks associated with utilizing an internet-based charting service, commentary, indicators, trading systems or deal execution trading system including, but not limited to, the failure of hardware, software, and Internet connection. Since FX-Strategy, Inc. does not control signal power, its reception or routing via internet, configuration of your equipment or reliability of its connection, we cannot be responsible for communication failures, distortions or delays when trading via the Internet.

Hypothetical Results

Hypothetical or simulated performance results that appear on this website have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under, or over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs, in general, are also subject to the fact that they are designed with the benefit of hindsight. Past profits are not necessarily an indicator of future results, and no representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Nothing on this site constitutes a solicitation to buy or an offer to sell or buy foreign currency.

Accuracy of Information

The content on this website is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions. FX-Strategy has taken reasonable measures to ensure the accuracy of the information on the website, however, does not guarantee its accuracy, and will not accept liability for any loss or damage which may arise directly or indirectly from the content or your inability to access the website, for any delay in or failure of the transmission or the receipt of any instruction or notifications sent through this website.


This site is not intended for distribution, or use by, any person in any country where such distribution or use would be contrary to local law or regulation. None of the services or investments referred to in this website are available to persons residing in any country where the provision of such services or investments would be contrary to local law or regulation. It is the responsibility of visitors to this website to ascertain the terms of and comply with any local law or regulation to which they are subject.

Trading Charges

Although you may not be charged a brokerage commission, the dealer is compensated by revenues from its activities, including proceeds from buying, selling, converting as well as holding currencies and interest on deposited funds and rollover fees. For example, notwithstanding the lack of commission or transaction fees the dealer, when it provides a market in a particular currency does so by stating a bid/ask spread which may represent a premium on the ask side and a discount on the bid side to a prevailing or last trade price in the foreign exchange market. You should also consider that you may incur fees and charges initiated by third parties, such as bank fees and charges on currency deliveries.

Market Risks and Online Trading

Currency trading is complex; involving systems and a broker platform that provides sophisticated order entry and tracking of orders, including stop-loss, limit and market orders. In addition market conditions can be volatile and may adversely affect trading results compared to hypothetical results. Trading online, no matter how convenient or efficient does not necessarily reduce risks associated with currency trading. User services are subject to the terms and conditions accessible through this website.