The purpose of this notice is to describe the major risks of foreign exchange transaction. This is a general risk warning to the investors (you, your, clients, customers) and the Information provided herein is of a general nature dealing with all the products offered by ABIGTL (we, our, us, "ABIGTL").
It is very important that you read and comprehend the following risks associated with trading foreign exchange before you begin trading with your ABIGTL account.
Foreign exchange transactions bring about a high level of risk, and are not suitable for everyone. By letting the client open an account with ABIGTL does not ABIGTL implicitly or explicitly approves of the customer's investment strategy, financial situation or needs, or competence to trade in the offered products. It's up to the customer to ensure that they have the required knowledge. Any pre-opening assessment done by ABIGTL is for account opening purpose only.
Before entering this market, it is crucial that you carefully reflect over your investment objectives, trading proficiency, and ability to deal with risk. It is possible to lose all the money you invested in a trade, and we advise against depositing and investing in any funds that have been borrowed from others.
The price and liquidity of a currency or currency pair can be influenced by changes in the political, economic, and natural states of those countries, and any transactions involving currencies are subject to volatile market conditions. ABIGTL is not responsible for the monitoring of your account in this regard. In addition, Past performance is not a reliable indicator of future performance and ABIGTL does not give any guarantee for future performance.
ABIGTL aims to provide clients with the best execution available and to get all orders filled at the requested rate. However, there are times when, due to an increase in volatility or volume, orders may be subject to slippage and difference may exist between the raw price and the final price. Slippage most commonly occurs during fundamental news events or periods of limited liquidity. It may also occur after trading hours that may impact the next day opening price. In case of such events the pending positions or orders cannot be altered or modified. Therefore, risks exist involved in holding open positions during this time. In this regard, ABIGTL doesn't bear any responsibility for any trading losses you might incur as a result of slippage or disparity between final price and raw price.
All content, including but not limited to news, prices, research, analyses, and opinions on this website, is provided as general market commentary, and does not serve as investment advice. ABIGTL will not accept liability for any loss or damage that may result from usage or dependence on website or platform content. Although ABIGTL checks frequently to ensure that the content on the website and platform is accurate, it does not warrant that all information is accurate and true. Additionally, the content on the website and platform may be updated any time without notice.
ABIGTL's content, services, and investments are not intended for residents in any country where such distribution or use would be contrary to local law or regulation. Visitors to this website or the ABIGTL platform are responsible for understanding the terms and conditions, and shall not be considered a solicitation to any person in any authority where such an act would be illegal. Please contact us should any questions or concerns arise.
This brief statement does not disclose all the risks associated with foreign exchange trading ("forex") and other financial instruments offered through ABIGTL. Because all customer accounts are self-directed, it is important that customers understand the substantial risks and losses that may arise as a result of their trades. Please review the following risks prior to trading in order to determine whether trading is appropriate for you and if it meets your financial objectives, experience, and available resources.
Leveraged trading is the act of using leverage to increase the return on investment significantly. Leveraged trading may produce significant profits for traders but may also come with a significant cost. Because small market movements result in a proportionally larger effect, losses will be amplified, and customers may lose all the funds they deposited. Thus, customers should only trade money that they can manage and are willing to lose.
Funds deposited by customers are not held in separate accounts at banks, but are combined with funds deposited by other customers. Collection and disbursal of funds shall be conducted in compliance with all enforced laws in Vanuatu.
Trading may be suspended or restricted under certain market conditions or market rules where buying and selling may be difficult due to price limits, which are the levels that trading prices are allowed to rise or fall in a day. In such situations, customers may face greater risk of loss. Because different prices may be offered to different customers, and these prices may or may not reflect prices available for trading at other foreign currency markets, it can be difficult to gauge whether the prices offered are consistent with the market rate.
It is encouraged that you to employ such risk-reducing strategies as 'Stop Loss', 'Stop Order', or 'Trailing Stop', but you should be aware that market conditions may make it impossible to close out your order at the level specified. Avoiding using above-mentioned strategies is at your own risk. When a currency pair is long, the first currency is bought while the second currency is sold short. On the other hand, a short position occurs when the first currency is sold while the second currency is bought.Stop-loss Order implies placing an order with a broker to sell a security when it reaches a certain price. While the usage of "stop-loss" orders are suggested to limit and avoid downside risk instead of a margin call as a final stop, it may be impossible for such orders to be consistently useful because market conditions or certain market rules may hinder them from being executed. It is recommended for customers to maintain adequate margin, add more funds to their trading accounts, and reduce or close overall positions to avoid margin closeouts.
During periods of high volume, order processing delay may occur. This is a condition where an order is in the process of executing but execution has not yet been confirmed. In such condition, the order is in the process of being executed, but is pending. During periods of heavy trading volume, it is possible that a queue of orders will form. That increase in incoming orders may sometimes create conditions where there is a delay in confirming certain orders.
Depending on the type of order placed, outcomes may vary. In the case of a Market Range order that cannot be filled within the specified range, or if the delay has passed, the order will not be executed. In the case of a Market order, every attempt will be made to fill the order at the next available price in the market. In both situations, the "status" column in the "orders" window will typically indicate "executed" or "processing." The trade will simply take a few moments to move to the "open positions" window. Depending upon the order type, the position may in fact have been executed, and the delay is simply due to heavy internet traffic.
Keep in mind that it is only necessary to enter any order once. Multiple entries for the same order may slow or lock your computer or inadvertently open unwanted positions.
ABIGTL doesn't bear any responsibility for any trading losses you might incur as a result of any delays on your side and our side or glitches in trading platform.
Foreign exchange transactions will be affected by fluctuations in currency rates when converting from one currency to another. The USD account consequently may be different from accounts denominated by other currencies. Thus, profits or losses made from transactions will be affected by these fluctuations as well.
Prices offered by ABIGTL for customers' trades will only be legitimate at the exact date and at the exact time that the price is conferred upon them. In situations where markets have high volatility, the expected price may be different than the price at which the trade was carried out with. Slippage is the term used to describe this occurrence, and it is the difference between the two prices. Under these circumstances, trades will be executed at the exchange rate at the time the order is received by ABIGTL's server. Slippage may prove to be advantageous at times, but may also prove to be disadvantageous, depending on market condition.
The Client is warned of the following technical risks, in addition to the ones stated in the Client Agreement:
'Force Majeure' means an event which is beyond the reasonable control of an affected party including without limit any Market Disruption, acts or restraints of government(s) or public authorities, war, revolution, strikes or other industrial action, fire, flood, natural disaster, explosion, terrorist action, the suspension or limitation of trading by any execution venue, or any breakdown, failure, defective performance or malfunction of any telecommunications settlement or other equipment or systems. On the occurrence of such events, ABIGTL doesn't bear any responsibility for any trading losses you might incur as a result of force majeure.
The content on VFS's website and platform should never be regarded as investment advice. Thus, customers should understand and be able to handle the risks of foreign exchange, whether it is by themselves or with the assistance of a financial advisor.
Engaging in foreign exchange trading may also bring additional risks from introducing brokers who are compensated by retail foreign exchange dealers or futures commission merchants for introducing new users. These introducing brokers may not have any experience in trading, and must be registered in order to carry out their role. Users must carefully consider these solicitors and ensure that they are registered before allowing their dealers or a solicitor to carry out trading decisions.