Please read this disclosure carefully before using any educational content on this platform in relation to forex or CFD trading.
Trading foreign exchange on margin 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 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 of your initial investment and therefore you should not invest money that you cannot afford to lose.
Forex and CFD trading involves the use of leverage, which means you can control a position larger than the capital you have deposited. While leverage can amplify potential returns, it equally amplifies potential losses. It is possible to lose more than your initial deposit if you are not protected by negative balance protection, and even with such protection, the entire amount deposited can be lost.
The educational content provided on this website is intended to help users understand how forex markets work. It does not constitute financial advice, investment advice or a recommendation to engage in any particular trading activity. Users must make their own independent assessment of the suitability of any trading activity for their personal circumstances.
Currency markets are highly dynamic. Exchange rates can move rapidly and significantly in response to economic data releases, central bank announcements, geopolitical events and changes in market sentiment. Price gaps can occur, particularly around major news events or at market open, which may result in trades being executed at prices different from those requested.
Past price movements and historical patterns described in educational content are not reliable indicators of future performance. Markets can and do behave in ways that contradict historical patterns.
Leverage is a defining feature of forex trading and one of its most significant risk factors. A small adverse movement in the price of a currency pair can result in a large loss relative to your deposited capital. If your account equity falls below the required margin level, your positions may be closed automatically at a loss.
Understanding how leverage works, how margin requirements are calculated and how margin calls operate is essential knowledge for anyone considering forex trading. Our educational content covers these concepts, but reading about them is not a substitute for fully understanding the practical implications before trading with real capital.
While major currency pairs are generally highly liquid, liquidity can reduce significantly during off-peak hours, around major data releases or during periods of market stress. Reduced liquidity can result in wider spreads, slippage and difficulty executing trades at desired prices.
Exotic currency pairs typically have lower liquidity than major pairs and are subject to wider spreads and greater price volatility.
Trading platforms and internet connections can experience technical failures. System outages, connectivity issues or software errors may prevent you from placing, modifying or closing trades at the time you intend. Having contingency plans, such as telephone dealing options, is something to consider when evaluating any trading platform.
When trading forex through a broker, you are exposed to the financial soundness of that broker. Trading with a firm regulated by the FCA provides a degree of protection through regulatory oversight, segregated client funds requirements and access to the Financial Services Compensation Scheme (FSCS) for eligible clients. However, no regulatory framework eliminates counterparty risk entirely.
Forex trading is not suitable for all investors. It requires a genuine understanding of how markets work, a clear appreciation of the risks involved and the financial capacity to absorb potential losses. If you are uncertain about whether forex trading is appropriate for your circumstances, you should seek independent financial advice from a qualified adviser before proceeding.
Novarionis provides educational content about forex markets, currency pairs, trading concepts and risk management principles. Nothing on this platform should be interpreted as a recommendation to trade, a trading signal, a market prediction or personalised financial advice. The platform is designed to build knowledge and understanding, not to direct trading decisions.
For further information about the regulatory status of our associated firm, please see our Legal & Compliance page.