Trading in foreign exchange and derivative transactions involves a high degree of risk due to the following:

• The amount of initial margin is small relative to the value of the underlying contract so that transactions are "leveraged" and "geared." A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit. Losses can be quick and significant.
• If the market moves against your position, you may be called upon to pay substantial additional funds on short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss which may result in a total loss of investment.
• If the market moves against your position, you may be called upon to pay substantial additional funds on short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss which may result in a total loss of investment.
• Excessive intraday volatility due to unexpected news releases may render market conditions "illiquid" and may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions.
• The placing of certain orders that are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders.
• CFD (Contracts for Difference): Futures and options contracts can also be referred to as contracts for differences. These can be options and futures on any index, share, or currency. However, unlike other futures and options, these contracts can only be settled in cash. Investing in contract for differences carries the same risk as Investing in a future or an option and you should be aware of these as set out above.