Onnfx forex risk disclosure
Important information about the risks involved in trading forex and CFDs with Onnfx. Please read this disclosure carefully before opening or funding an account.
High Risk Warning
Forex trading carries a high level of risk and may not be suitable for all investors.
You should not risk more than you can afford to lose. 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.
Key Trading Risks
Market Risk
- Volatility: Forex markets can be extremely volatile with rapid price movements
- Liquidity risk: Some currency pairs may have low liquidity during certain times
- Gap risk: Markets may gap significantly when reopening after weekends or holidays
Leverage Risk
- Magnified losses: Leverage amplifies both profits and losses proportionally
- Margin calls: Insufficient margin may lead to automatic position closure
- Over-leveraging: Excessive leverage can lead to rapid account depletion
Operational Risk
- Technical failures: Platform issues may prevent trade execution or management
- Internet connectivity: Connection problems may affect trading and order management
- System downtime: Maintenance or technical issues may limit access to funds
Psychological Risk
- Emotional trading: Fear and greed can lead to poor decision-making
- Overtrading: Excessive trading can lead to fatigue and errors
- Loss aversion: Holding losing positions too long hoping for reversal
Risk Management Best Practices
Use Stop Losses
Always set stop losses to limit potential losses on every trade.
Position Sizing
Risk only 1-2% of your trading capital per trade.
Diversification
Don't risk everything on one trade or currency pair.
Risk/Reward Ratio
Aim for positive risk/reward ratios of at least 1:2.
Education First
Understand markets before risking real capital.
Trading Plan
Have clear rules and stick to your strategy consistently.
Demo Practice
Test strategies with virtual money before risking real capital.
Important Notice
Past performance is not indicative of future results.
The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange or CFDs with Onnfx, 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. You should be aware of all the risks associated with forex and CFD trading and seek advice from an independent financial advisor if you have any doubts.
Questions about trading risks with Onnfx?
Our risk management team is available to help you understand and manage the risks of trading forex and CFDs on the Onnfx platform.