Risk Disclosure Notice
Before you begin trading with EightCap, you must carefully consider whether trading in our products is appropriate for you in light of your financial circumstances and position.
You should keep in mind that margin trading is considered a high risk geared investment strategy and may not be suitable for many members of the public. You should not deal in the products we offer unless you understand the nature of the contract you are entering into and the extent of your exposure to risk from that contract.
Margin Trading involves different levels of exposure to risk and in deciding whether to trade in such instruments, you should consider the following points:
– Trading Forex and CFDs carries a high degree of risk. The ‘leverage’ involved in trading these products means that both gains and losses are magnified. In other words, a relatively small market movement can lead to a proportionately much larger movement in the value of your investment, and this can work against you as well as for you.
– Derivative markets can be highly volatile. The prices of the underlying securities, currencies, commodities, financial instruments or indices may fluctuate rapidly and over wide ranges and in reflection of unforeseen events or changes in conditions, none of which can be controlled by you. It will also be influenced by unpredictable events including, amongst other things, changing supply and demand relationships, governmental, agricultural, commercial and trade programs and policies, national and international political and economic events and the prevailing psychological characteristics of the relevant marketplace.
– Foreign markets will involve different risks to Australian markets. The potential for profit or loss from a Margin FX or CFD relating to a foreign market or denominated in a foreign currency will be affected by fluctuations in foreign exchange rates. It is possible to incur a loss if exchange rates change to your detriment, even if the price of the instrument to which the Margin FX or CFD relates remains unchanged.
– You may sustain a total loss of the margin that you deposit with us to establish or maintain a position. If the market moves against you, you may be called upon to pay substantial additional margin at short notice. If you fail to do so within the required time, your position may be liquidated at a loss and you will be liable for any resulting deficit. You will be deemed to have received a notice requiring the payment of such funds, even if you are not at home or do not receive the messages we leave for you, if the notices are delivered to your nominated contact points.
– EightCap will not provide you with any personal financial product advice relating to Margin FX and CFDs and we will not make any recommendations of any kind. The only advice we will give you will be as to how margin trading works. Consequently, you should consider carefully before trading with us and the appropriateness of any general advice having regard to your personal objectives, financial situation and needs, and obtain financial and legal advice before you open an account and trade with us.