Forex & Contracts for Difference referred to as CFDs & are complex financial products, most of which have no set maturity date. Therefore, a position matures on the date you choose to close an existing open position. CFDs and Forex, which are leveraged products, incur a high level of risk and can result in the loss of all of your invested capital. As a result, they may not be suitable for all individuals. You should not risk more than you are prepared to lose. Before deciding to trade, you should ensure that you understand the risks involved and take into account your level of experience. You should seek independent advice, if necessary.
GLBMarkets offers various financial products allowing for among others, the carrying out of transactions in Contracts for Difference including but not limited to, forex, foreign currency exchange rates, indices, commodities, futures and options and other financial assets or CFDs. However owing to the fact that different regulations & taxation apply in different regions, restrictions may apply and some or all of the financial product offered by GLBMarkets may not be intended for clients in certain regions, recipients residing in countries where the provision of such products and services would constitute a violation of mandatory applicable legislation or regulations are strongly advised to obtain independent investment, financial, legal and tax advice regarding trading Forex , Stocks and other assets before trading. Under no circumstances will the Company be liable for any consequential, incidental, special, legal, punitive or exemplary damages arising by trading, registering or any use of this site.
This is a general risk warning and the Information provided herein is of a general nature dealing with all the products offered by GLBMarkets. This risk disclosure cannot and does not disclose all of the risks of trading in spot foreign & foreign exchange contracts for difference referred to as CFDs. The purpose of this notice is to describe the major risks of trading spot forex and CFDs.you need to ensure that your decision is made on an informed basis
You should not engage in speculative spot forex or CFD trading unless you understand the basic aspects of such trading and its risks. – for example, how positions are opened and closed, how profits and losses are made and the extent of your exposure to risk and loss. Trading in spot Forex and CFDs is speculative and involves a high degree of risk since it will be conducted using margin, the margin covers only a small percentage of the value of the foreign currency traded and high leverage hence small price changes in spot Forex or CFD can result in significant losses.
CFD and Forex trading is an agreement to either buy or sell a contract that reflects the performance of, including amongst others, forex, precious metals, futures and shares; the profit or loss of is determined by the difference between the price a CFD or Currency (Forex) is bought at and the price is sold at and vice versa. CFDs and Forex are traded on margin and it should be noted that no physical delivery of either the CFD or Forex or underlying asset is occurring. It should also be noted that when you purchase, for example, CFDs on shares you are merely speculating on the share’s value to either increase or decrease.
CFDs fluctuate in value during the day; the price movements of CFDs are determined by a number of factors including but not limited to availability of market information.It should be noted that past performance of CFDs is not a useful indicator of future performance.
Therefore, trading in these contracts is appropriate only for persons who understand and are willing to assume the economic, legal and other risks involved in such transactions. You should be satisfied that spot forex and CFD trading is suitable for you in the light of your financial circumstances and attitude to risk. If you are in any doubt as to whether spot forex or CFD trading is suitable for you, please seek independent advice from a financial services professional. GLBMarkets does not provide such advice. You should not commence trading in CFDs unless you understand the risks involved.
When trading CFDs, you are effectively entering into an over-the-counter (‘OTC’) transaction; this implies that any position opened with GLB Markets cannot be closed with any other entity. OTC transactions may involve greater risk compared to transactions occurring on regulated markets, for example traditional exchanges; this is due to the fact that in OTC transactions there is no central counterparty and either party to the transaction bears certain credit risk (or risk of default).
When you engage in CFD or spot forex trading you are placing a trade in relation to movements of prices set by GLBMarkets. Prices quoted to you by GLBMarkets will include a spread, mark-up, or mark-down when compared to prices that GLBMarkets may receive or expect to receive if it were to cover transactions with you by a trade in the interbank market or with another counterparty. Although dealing spreads are common in the foreign exchange markets, the total impact of spreads may be significant in relation to the size of the margin you post and may make it more difficult for you to realize a profit from your trading. In addition, in connection with the automatic rolling forward of spot forex transactions that you do not close out, GLBMarkets will impose an interest charge. You should carefully consider the effect of such interest charges along with spreads, mark-ups, or mark-downs on your ability to profit from trading.
The “gearing” or “leverage” available in CFDs and spot forex trading (i.e. the funds GLBMarkets requires you to provide when a position is opened compared to the notional size of trade you can enter into) means that a small margin deposit can lead to large losses as well as gains. It also means that a relatively small movement can lead to a proportionately much larger movement in the size of any loss or profit which can work against you as well as for you.
You may lose all amounts you deposit with GLBMarkets as Margin. The placing of certain orders (e.g. “stop-loss” or “limit” orders) that are intended to limit losses to certain amounts may not always be effective because market conditions or technological limitations may make it impossible to execute such orders. Please also note that for all orders (including guaranteed stop loss orders) you may sustain the loss (which your order is intended to limit) in a short period of time.
You have to pay to GLBMarkets all losses you sustain as well as all other amounts payable under the terms and conditions for trading spot forex and CFDs such as interest. If you decide to engage in CFD and/or spot forex trading, you must accept this degree of risk. CFDs and spot forex trades are not traded under the rules of a recognized or designated investment exchange. Consequently, engaging in CFDs and/or spot forex trading may expose you to substantially greater risks than investments which are so traded.
The potential for profit or loss from transactions on foreign markets or in foreign denominated contracts are affected by fluctuations in foreign exchange rates. Transactions involving foreign currencies, including CFDs and/or spot forex trading, involves risks not present when dealing with investments denominated entirely in your domestic currency. Such enhanced risks include (but are not limited to) the risks of political or economic policy changes in a foreign nation, which may substantially and permanently alter the conditions, terms, marketability or price of a foreign currency. The profit or loss in transactions in foreign currency-denominated contracts (whether they are traded in your own or another jurisdiction) will also be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency.
CFD & Forex trading, unlike traditional trading, enables you to trade the markets by paying only a small fraction of the total trade value. However, it should be noted that leverage, or gearing as it is often referred to, means that a relatively small market movement may lead to a proportionately much larger movement in the value of your position. GLB Markets offers flexible leverage starting from 1:1 up to 1:400.It should be noted that the Firm shall monitor the leverage applied your positions, at all times; the Firm reserves the right to decrease the leverage depending on your trading volume.
A swap is the interest added or deducted for holding a position open overnight. Depending on the position held and the interest rates of the currency pair involved in the transaction your trading account may either be credited or debited, accordingly. Your trading account is reconciled every day at about 23:59 server time and the resulting amount shall be automatically converted into the currency that your trading account is denominated in.Please note that the rollover interest rates charged by Zx Market are based on the interbank rates; Zx Market updates such rollover interest rates as often as it deems necessary. You agree that you shall be notified of the applicable swap value by visiting the Zx Market site. In addition, you are responsible for checking the applicable swap value prior to placing an instruction for trading.
As a foreign currency company GLBMarkets may have access to information that is not available to you, may have acquired trading positions at prices that are not available to you, and may have interests different from your interests. GLBMarkets does not undertake any obligation to provide you with market or other information we possess, nor to alter or refrain from our own trading.
You need to ensure that you have sufficient margin on your trading account, at all times, in order to maintain an open position. In addition, you need to continuously monitor any open positions in order to avoid positions being closed due to the unavailability of funds; it should be noted that the Firm is not responsible for notifying you for any such instances.
GLB Markets bears no responsibility for any loss that arises as a result of delayed or un-received communication sent to you by the Firm.
In addition, Zx Market bears no responsibility for any loss that arises as a result of unencrypted information sent to you by the Firm that has been accessed via unauthorised means. You are solely responsible for the privacy of any information contained within the communication received by Zx Market.Moreover, you accept that any loss that arises as a result of unauthorised access of a third party to your trading account is not the responsibility of Zx Market.
In case of a Force Majeure Event you shall accept any loss arising
Under abnormal market conditions, CFDs may fluctuate rapidly to reflect unforeseeable events that cannot be controlled either by the Firm or you. As a result, GLB Markets may be unable to execute your instructions at the declared price and a ‘stop loss’ instruction cannot guarantee to limit the latter’s loss.CFD prices are influenced by, amongst other things, implementation of governmental, agricultural, commercial and trade programs and policies and national and international socioeconomic and political events.
You can only engage in CFD and/or spot forex trading with GLBMarkets in currencies GLBMarkets makes available. GLBMarkets does not undertake to continue to offer all such currencies. The markets GLBMarkets offers (and its prices) are derived from underlying prices quoted in the forex interbank market. GLBMarkets has no control over movements in the underlying prices which may be volatile and unpredictable. Those movements will affect GLBMarkets’s prices, whether or not you can open and close a position and the price at which you can do so.
We are not required to continue to make markets in any foreign currency and may refuse to accept any order at our absolute discretion. During periods of market volatility, it may be difficult or impossible for you to liquidate an existing position, to assess the value of open positions, to determine a fair price or to assess the exposure to risk. These are among the reasons why transactions in foreign currency involve increased risks. Since foreign currency trading with GLBMarkets is not conducted on a regulated exchange, there is no clearing house or other central counterparty which guarantees our payment obligations to you under contracts that you enter into. You can only look to GLBMarkets for performance on all spot forex or CFDs you enter into with us and for a return of any margin. The insolvency or default of GLBMarkets can cause you to lose the value of all positions carried in your Account with GLBMarkets and can cause you to suffer additional losses from open positions.
CFDs & Forex, which are leveraged products, incur a high level of risk and can result in the loss of all of your invested capital. However, it should be noted that GLB Markets operates on a ‘negative balance protection’ basis; this means that you cannot lose more than your initial investment.
Trading in Forex, Stocks and CFDs carry a high level of risk and can result in the loss of part or all of your investment. The high degree of leverage that is obtainable in the trading of Forex, Stocks and CFDs can work both against you as well as for you. You should not invest money that you cannot afford to lose. Should you have any doubts, or require further clarification you should seek advice from an independent and suitably licensed financial advisor. You should further make sure that you have sufficient time to manage your investments on an active basis. GLBMarkets does not provide investment advice and the information provided herein is intended for marketing purposes only and should not be relied on as investment advice. Any indication of past performance of a financial instrument is not a reliable indicator of current and/or future performance of such financial instrument.