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RISKS
OF CURRENCY TRADING
Margined currency trading is an extremely
risky form of investment and is only suitable for individuals and institutions
capable of handling the potential losses it entails. An account with Capital
Market Services LLC via WorldTra.de
LLC allows
you to trade foreign currencies on a highly leveraged basis (up to about
400 times your account equity). The funds in an account that is trading
at maximum leverage may be completely lost if the position(s) held in
the account experiences even a one percent swing in value. An account
could lose more than the equity it contains, e.g. if the account is trading
at maximum leverage and positions held in the account swing more than
one percent in value. Given the possibility of losing one's entire investment,
speculation in the foreign exchange market should only be conducted with
risk capital funds that, if lost, will not significantly affect the investor¡¯s
financial well-being.
Market
Opinions of our staff
Opinions expressed by our company's representatives
regarding the prices of specific currencies and the direction they will
take in the future do not necessarily represent the opinion of WorldTra.de
LLC or Capital Market Services LLC, and are not guaranteed in
any way.
Internet
Trading Risks
Furthermore, there are risks associated with utilizing
an Internet-based deal execution trading system including, but not limited
to, hardware malfunction, software failure, and Internet connection problems.
Because WorldTra.de LLC and Capital Market
Services LLC does not control signal power, reception or routing via Internet,
the configuration of your equipment or the reliability of its connection,
we cannot be responsible for communication failures, distortions or delays
you may experience while trading via the Internet. Capital Market Services
LLC employs back-up systems and contingency plans to minimize the possibility
of system failure.
Exchange
Rate Fluctuations
Exchange rates between foreign currencies can change rapidly due to a
wide range of economic and political events.
Bankruptcy
protection
The
transactions you are entering into with Capital Market Services, LLC (“CMS”)
are not traded on an exchange. Therefore, under the U.S. Bankruptcy Code,
your funds may not receive the same protections as funds used to margin
or guarantee exchange-traded futures and options contracts, which receive
a priority in bankruptcy. Since that same priority has not been given
to funds used for off-exchange forex trading, if CMS becomes insolvent
and you have a claim for amounts deposited or profits earned on transactions
with CMS, your claim may not receive a priority. Without a priority, you
are a general creditor and your claim will be paid, along with the claims
of other general creditors, from any monies still available after priority
claims are paid. Even customer funds that CMS keeps separate from its
own operating funds may not be safe from the claims of other general and
priority creditors.
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