Trading foreign exchange on margin (leveraged trading) carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange or other OTC instruments on margin, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all your initial investment and therefore you should never trade with money that you cannot afford to lose.
You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary and educational material and does not constitute personal investment advice. Tier1signals.com and R & G Fintech Ltd shall not be held liable 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.
The content on this website is subject to change at any time without notice and is provided for the sole purpose of assisting traders in making independent investment decisions. Tier1signals.com and R & G Fintech Ltd . 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.
In consideration of Tier 1 Signals and in conjunction with R & G Fintech Ltd agreeing to enter into over-the-counter (“ OTC”) contracts for differences (“ CFDs”) and foreign exchange contracts (“ FX Contracts”) with the any individual or corporate entity (hereinafter referred to as the “ Customer”, “ you”, “ your”), Customer acknowledges, understands and agrees that:
Trading Is Speculative and Risky
Trading CFDs and FX Contracts is highly speculative, involves a significant risk of loss and is not suitable for all investors but only for those customers who:
(a) understand and are willing to assume the economic, legal and other risks involved;
(b) are experienced and knowledgeable about trading in derivatives and in underlying asset types; and
(c) are financially able to assume losses significantly in excess of margin or deposits because investors may lose the total value of the contract not just the margin or the deposit.
Neither CFDs nor FX Contracts are appropriate investments for retirement funds. Leveraged CFD and FX transactions are among the riskiest types of investments and can result in large losses. Customer represents, warrants and agrees that Customer understands these risks, is willing and able, financially and otherwise, to assume the risks of trading CFDs and FX Contracts and that the loss of Customer’s entire account balance will not change Customer’s lifestyle.
Risks Related to Long CFD positions, i.e. for Purchasers of CFDs
Being long in CFD means you are buying the CFDs on the market by speculating that the market price of the underlying will rise between the time of the purchase and sale. As owner of a long position, you will generally make a profit if the market price of the underlying rises whilst your CFD long position is open. On the contrary, you will generally suffer a loss, if the market price of the underlying falls whilst your CFD long position is open. Your potential loss may therefore be bigger than the initial margin deposited. In addition, you might suffer a loss due to the closing of your position, in case you do not have enough liquidity for the margin on your account in order to maintain your position open.
Risks Related to short CFD positions, i.e. for sellers of CFDs
Being short in CFD means you are selling the CFDs on the market by speculating that the market price of the underlying will fall between the time of the purchase and sale. As owner of a short position, you will generally make a profit if the market price of the underlying falls whilst your CFD short position is open. On the contrary, you will generally suffer a loss, if the market price of the underlying rises whilst your CFD short position is open. Your potential loss may therefore be bigger than the initial margin deposited. In addition, you might suffer a loss due to the closing of your position, in case you do not have enough liquidity for the margin on your account in order to maintain your position open.
High Leverage And Low Margin Can Lead To Quick Losses
The high degree of “gearing” or “leverage” is a particular feature of both CFDs and FX Contracts. The effect of leverage makes investing in CFDs riskier than investing in the underlying asset. This stems from the margining system applicable to CFDs which generally involves a small deposit relative to the size of the transaction, so that a relatively small price movement in the underlying asset can have a disproportionately dramatic effect on your trade. This can be both advantageous and disadvantageous. A small price movement in your favor can provide a high return on the deposit, however, a small price movement against you may result in significant losses. Your losses will never exceed the balance of your account, which is balanced to zero, if the losses are higher than the amount deposited. Such losses can occur quickly. The greater the leverage, the greater the risk. The size of leverage therefore partly determines the result of the investment.
Customer must maintain the minimum margin requirement on their open positions at all times. It is Customer’s responsibility to monitor his/her account balance. Customer may receive a margin call to deposit additional cash if the margin in the account concerned is too low.
The difference between our bid price and our ask price is “Our Spread”. Our Spreads are set in our absolute discretion, since we are acting as market maker, and any changes are effective immediately.
Customer understands that CFD and FX Contracts can only be settled in cash and the difference between the buying and selling price partly determines the result of the investment.
When trading CFDs or FX Contracts with us, such transactions will not be executed on a recognized or designated investment exchange and are known as over-the-counter (OTC) transactions. All positions entered into with us must be closed with us and cannot be closed with any other entity. OTC transactions may involve greater risk than investing in on-exchange contracts because there is no exchange market on which to close out an open position. It may be impossible to liquidate an existing position, to assess the value of the position arising from an OTC transaction or to assess the exposure to risk. Bid prices and ask prices may not be quoted by us, based on best execution policies applicable in the market.
Rights to Underlying Assets
You have no rights or obligations in respect of the underlying instruments or assets relating to your CFDs or FX Contracts. The Customer understands that CFDs can have different underlying assets, such as stocks, indices, currencies and commodities.
Investing in FX Contracts and CFDs with an underlying asset listed in a currency other than your base currency entails a currency risk, due to the fact that when the CFD or FX Contract is settled in a currency other than your base currency, the value of your return may be affected by its conversion into the base currency.
Tier 1 Signals Is Not An Adviser Or A Fiduciary To Customer
Where Tier 1 Signals provides generic market recommendations, such generic recommendations do not constitute a personal recommendation or investment advice and have not considered any of your personal circumstances or your investment objectives, nor is it an offer to buy or sell, or the solicitation of an offer to buy or sell, any Foreign Exchange Contracts or Cross Currency Contracts. Each decision by Customer to enter into a CFD or FX Contract with Tier 1 Signals and each decision as to whether a transaction is appropriate or proper for Customer, is an independent decision made by the Customer. Tier 1 Signals is not acting as an advisor or serving as a fiduciary to Customer. Customer agrees that Tier 1 Signals has no fiduciary duty to Customer and no liability in connection with and is not responsible for any liabilities, claims, damages, costs and expenses, including attorneys’ fees, incurred in connection with Customer following Tier 1 Signalss generic trading recommendations or taking or not taking any action based upon any generic recommendation or information provided by Tier 1 Signals.
Recommendations Are Not Guaranteed
The generic market recommendations provided by Tier 1 Signals are based solely on the judgment of Tier 1 Signals personnel and should be considered as such. Customer acknowledges that Customer enters into any Transactions relying on Customer’s own judgment. Any market recommendations provided are generic only and may or may not be consistent with the market positions or intentions of Tier 1 Signals and/or its affiliates. The generic market recommendations of Tier 1 Signals are based upon information believed to be reliable, but Tier 1 Signals cannot and does not guarantee the accuracy or completeness thereof or represent that following such generic recommendations will reduce or eliminate the risk inherent in trading CFDs and/or FX Contracts.
No Guarantees Of Profit
There are no guarantees of profit nor of avoiding losses when trading CFDs and FX Contracts. Customer has received no such guarantees from Tier 1 Signals or from any of its representatives. Customer is aware of the risks inherent in trading CFDs and FX Contracts and is financially able to bear such risks and withstand any losses incurred.
Customer May Not Be Able To Close Open Positions
Due to market conditions which may cause any unusual and rapid market price fluctuations, or other circumstances, Tier 1 Signals may be unable to close out Customer’s position at the price specified by Customer and the risk controls imposed by Tier 1 Signals might not work and Customer agrees that Tier 1 Signals will bear no liability for a failure to do so.
When Customer trades online (via the internet), Tier 1 Signals shall not be liable for any claims, losses, damages, costs or expenses, caused, directly or indirectly, by any malfunction, disruption or failure of any transmission, communication system, computer facility or trading software, whether belonging to Tier 1 Signals, Customer, any exchange or any settlement or clearing system.
Tier 1 Signals is not responsible for disruption, failure or malfunction of telephone facilities and does not guarantee its telephone availability. For the avoidance of doubt, Customer is aware that Tier 1 Signals may not be reachable by telephone at all times. In such cases Customer shall place his/her order through other means offered by Tier 1 Signals.
BY SIGNING UP FOR SERVICES PROVIDED BY TIER1SIGNALS.COM, YOU CERTIFY THAT YOU HAVE READ, UNDERSTOOD AND AGREE TO THE RISK DISCLOSURE STATEMENT AND THE TRADING POLICIES AND PROCEDURES SET OUT ABOVE.