⚠️ RISK DISCLAIMER

1. General Risk Warning

ForexBasics.org provides educational content about foreign exchange (forex) and contracts for difference (CFDs) trading. This content is for informational and educational purposes only and should not be considered as investment advice, trading recommendations, or an offer or solicitation to buy or sell any financial instrument.

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. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

2. Leverage and Margin Trading Risks

Forex trading involves significant leverage, which can lead to large losses as well as gains. Leverage can work against you as well as for you. Specific risks include:

• Amplified Losses: Leverage amplifies both gains and losses. A small adverse movement in price can result in the loss of your entire deposit.
• Margin Calls: If the market moves against your position, you may be called upon to deposit additional funds to maintain your position.
• Forced Liquidation: Failure to meet margin requirements may result in the closure of your position without your consent.
• Gap Risk: Markets can gap over the weekend or during news events, causing losses that exceed your stop-loss levels.

3. Market Risks

3.1 Volatility Risk

Currency markets can be highly volatile. Price movements can be sharp and sudden, triggered by economic news, political events, or market sentiment changes. This volatility can lead to significant losses in a very short period.

3.2 Liquidity Risk

Although the forex market is generally liquid, certain currency pairs or market conditions may have reduced liquidity. This can result in:

• Wider spreads than normal
• Difficulty executing trades at desired prices
• Slippage on order execution
• Inability to exit positions during extreme market conditions

3.3 Currency Risk

If you trade in a currency different from your base currency, exchange rate fluctuations can affect your profits and losses independently of your trading performance.

4. Operational Risks

4.1 Technical Risks

• Platform Failures: Trading platform outages can prevent you from managing positions
• Internet Connectivity: Loss of internet connection can result in missed opportunities or inability to close positions
• Computer/Device Failures: Hardware or software failures can impact your trading
• Data Feed Issues: Incorrect price feeds can lead to erroneous trading decisions

4.2 Broker Risk

• Counterparty Risk: The insolvency of your broker could result in the loss of your funds
• Execution Risk: Orders may not be executed at expected prices
• Regulatory Changes: Changes in regulations may affect your ability to trade

5. Psychological Risks

Trading can be emotionally and psychologically challenging:

• Emotional Decision Making: Fear and greed can lead to poor trading decisions
• Addiction Risk: Trading can become addictive, leading to excessive risk-taking
• Stress and Anxiety: Financial losses can cause significant psychological distress
• Overconfidence: Initial success can lead to overconfidence and increased risk-taking

6. No Guarantees

ForexBasics.org makes no guarantees regarding:

• The accuracy, timeliness, or completeness of any information on this website
• The results that may be obtained from using our educational content
• The performance of any trading strategy or system discussed
• The suitability of forex trading for any particular individual

7. Educational Purpose Only

All content on ForexBasics.org is provided for educational purposes only. We do not:

• Provide personalized investment advice
• Manage client funds or accounts
• Execute trades on behalf of clients
• Guarantee any specific outcomes from trading
• Recommend specific brokers or trading platforms

Any broker comparisons or tool calculations are for informational purposes only and should be independently verified before making trading decisions.

8. Regulatory Considerations

Forex and CFD trading may not be legal in all jurisdictions. It is your responsibility to ensure that forex trading is permitted in your country of residence and that you comply with all applicable laws and regulations.

Some countries have restrictions on:

• Leverage limits for retail traders
• Types of financial instruments that can be traded
• Marketing and promotion of trading services
• Access to certain brokers or platforms

9. Risk Management Recommendations

While we cannot eliminate trading risks, we strongly recommend:

• Education First: Thoroughly educate yourself before trading with real money
• Demo Trading: Practice extensively on a demo account
• Risk Limits: Never risk more than 1-2% of your account per trade
• Stop Losses: Always use stop-loss orders to limit potential losses
• Disposable Income Only: Only trade with money you can afford to lose
• Professional Advice: Consider consulting with a qualified financial advisor
• Continuous Learning: Markets evolve; continue educating yourself

10. Limitation of Liability

To the fullest extent permitted by law, ForexBasics.org, its owners, employees, partners, and affiliates shall not be liable for any direct, indirect, incidental, special, consequential, or punitive damages resulting from:

• Your use or inability to use this website
• Any trading decisions made based on our content
• Any errors or omissions in our educational material
• Any losses incurred from forex or CFD trading
• Any third-party content or links on our website

11. Acknowledgment and Acceptance

By using ForexBasics.org, you acknowledge that:

• You have read and understood this risk disclaimer
• You are aware of the risks involved in forex trading
• You accept full responsibility for your trading decisions
• You will not hold ForexBasics.org liable for any trading losses
• You are of legal age to enter into financial contracts in your jurisdiction

12. Contact Information

If you have questions about this risk disclaimer or our educational content, please contact us at:

Email: [email protected]
Website: https://forexbasics.org

Note: We cannot provide personalized trading advice or recommendations. All inquiries should be related to our educational content only.