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Forex Risk Warning Back To: Forex Education, Resources & Tools
High Risk Investment: Margined Currency Trading is one of the riskiest forms of investment available in the financial markets and is only suitable for sophisticated individuals and institutions. An account permits you to trade foreign currencies on a highly leveraged basis (up to approximately 100 times your account equity). An initial deposit of $2,000 will enable the account holder to take a maximum position with $200,000 market value. The funds in an account trading at maximum leverage can be completely lost, if the position(s) held in the account has a one percent swing in value. Theoretically, an account could lose more than the equity it contains, if the account is trading at maximum leverage and positions held in the account swing more than one percent in value. Given the possibility of losing one's entire investment, speculation in the foreign exchange market should only be conducted with risk capital funds that if lost will not significantly effect one's personal or institution's financial well being.
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