RISK DISCLOSURE
This notice outlines the risks involved with investment products offered by iCare Forex Limited. These products, including Contracts for Difference (CFDs), can lead to significant losses, with 75% of retail clients losing money when trading CFDs. Given the complexity and leverage associated with CFDs, it's important to understand how they function and whether you can handle the risks involved.
CFD Accounts
CFDs allow you to speculate on price fluctuations of various instruments such as foreign exchange, futures, options, and stocks. They can only be settled in cash. Due to leverage, even small market movements can result in significant gains or losses, potentially exceeding your initial deposit.
No Advice Provided
Our services operate on an execution-only basis, meaning we do not offer investment advice. While we may provide factual information, decisions regarding your account are entirely your responsibility. Always ensure you comply with tax and legal obligations, and seek independent advice if unsure about your tax liabilities.
Appropriateness of Products
Before opening a CFD account, we assess whether our products are suitable for you. However, the decision to proceed and manage your risk is yours alone. You must monitor your financial standing and the performance of your investments closely.
General Risks of CFDs
CFDs are not listed on any exchange, and contracts can only be closed with us. These agreements do not grant rights to the underlying assets. Additionally, trading conditions such as market volatility, liquidity, and corporate events can affect the profitability of your trades. Detailed contract terms, including margin rates and commission, are available on our website.
Special Considerations for Short Selling
Shortselling CFDs involves specific risks, such as forced buybacks and additional borrowing costs. Corporate events can also impact your position, sometimes with little warning, making it crucial to remain informed.
Currency, volatility, and gapping
If you trade in a currency different from your base currency, exchange rate fluctuations will impact your profits and losses. Market volatility and sudden price changes (gapping) can lead to unexpected losses, especially if trading occurs outside of regular market hours.
Leverage and margin requirements
Leverage magnifies both potential gains and losses. You must maintain sufficient funds in your account to meet margin requirements and be prepared to provide additional funds if necessary. Failure to do so may result in the closure of your positions.
Electronic Communications
While convenient, electronic communications such as trading platforms may experience failures or delays. It’s important to be aware of these risks when placing trades electronically.
Corporate Events and Trading Risks
Corporate events affecting underlying assets can lead to changes in your positions. iCare Forex aims to reflect market conditions but may require decisions sooner than if you directly owned the asset.
Insolvency & Capital Insurance
In the unlikely event of insolvency by ICFXL or other third parties, your positions may be liquidated, and you will receive the insurance that has been activated against your investment. Each capital is insured by a substantial amount of USD.
Past Performance and Regulation Risks
Past performance of financial products is not indicative of future results. Regulatory changes or legal risks in different markets can also affect your investments, particularly in emerging markets with less oversight.
For more detailed information about the risks associated with your account, visit the relevant sections on our website or consult independent financial advice.