INFORMATION ABOUT RISKS
Annex № 2 to REGULATIONS
for the conducting of conversion arbitrage
transactions in foreign currencies and other
trading assets on “Margin Trading” terms
DECLARATION ON THE RISKS ASSOCIATED WITH THE CONDUCTING OF TRANSACTIONS IN FOREX MARKET
Mugan FX LTD warns that trading in Forex market involves risk. This warning is for information purposes only and does not indicate that all of the mentioned risks may happen directly with you. The key objective is to inform the customer of all trading and non-trading risks that may arise from activities in the foreign exchange market. First, please consider the purpose of starting trading activity in Forex market and never deposit amount the loss of which could have a negative impact on your budget. Trading in the foreign exchange market is dangerous because of uncontrollable risk.
The effect of leverage allows you to trade with more funds than you invest. However, leverage can work both on your side and against you. Psychological factor plays an important role in this respect. Some traders choose a high level of leverage to operate with a large amount of funds. It creates the illusion of "unlimited profit opportunities without risk", but in reality, this is not always the case. The volume of investment can bring more income due to the leverage, but do not forget that along with income, there is a likelihood of losing your deposit almost in full. Analyze carefully and choose a level of leverage which will help you avoid a high level of risk.
HIGH VOLATILITY OF FINANCIAL INSTRUMENTS
A number of trading instruments used for working in Forex market has a large intraday volatility that may result in both profits and financial losses.
In certain market conditions, spreads may vary from normal at a number of points upwards. At publication of news, spreads may significantly increase to compensate for the high level of volatility. The Increase in spreads can last from several seconds to several minutes. The increase in spreads can adversely affect all account positions, including offsetting positions.
In some cases, due to the high level of volatility and increase in the volume of trade, there may occur so-called "slippage" of the order. Usually, this happens on the background of important news and events.
Difficulties in execution of orders can be associated with strong fluctuations in the market price or an increase in the volume of trade when market liquidity is not enough to execute all orders at the requested price. In both cases, the transaction is executed at the best price available at the moment. Typically, this price differs from the one the customer sees when placing the order.
Prices of opening a new trading period does not necessarily coincide with the closing prices of the previous period. In some cases the price difference may be insignificant, in other cases there may occur a substantial price gap. Normally, the price gap is observed at the publication of important economic and other news. Customers maintaining positions and orders during the weekend should be ready for such a change.
There are risks that may occur on the customer side, specifically the failure of hardware and software, loss of connection, failure of communication systems, incorrect setting of the trading platform, etc.
RESTRICTIONS ESTABLISHED BY LEGISLATION
Customer is responsible for the implementation of the operations that are illegal in the country of his permanent residence. Each customer shall notify the relevant authorities of the level of income.
The Company is not responsible for the situations, such as the loss of money or receiving money earned in incomplete amount, related to force majeure such as natural disasters, extreme weather conditions, the threat of war, terrorist acts, revolution, illegal actions of third parties, mass unrest, riot, government decisions, etc.
In market conditions different from the normal, processing time of customer orders may increase.
Any analytical information provided on this website is not a guide to actions that allow bringing a hundred percent profit, and but a recommendation only.
Setting the Stop Loss level may not always completely limit losses.
The risks associated with a lack of knowledge of the foundations of the currency market, and the basic principles of operating on the trading platform.
Information sent by e-mail in clear will not be protected from unauthorized access.
The Company is not responsible for the financial losses of the customer, in case of non-receipt by the customer of important messages due to technical problems on the customer side.
Trading requires concentration, so there is a risk of losing money due to unstable moral or physical condition.
We focus on long-term relationships with our customers. Our team cares about its customers and therefore we recommend that you carefully examine all possible risks* and choose a trading strategy that fits your trading style.
* This list includes but is not limited to risks presented therein.
I have read this Declaration on the risks associated with the conducting of transactions in financial markets; I recognize and accept all of the abovementioned risks.