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**RISK WARNING:** - indigostrader - 20.11.2025
**RISK WARNING:** Trading Foreign Exchange (Forex) and Futures on margin carries a **high level of risk** and may not be suitable for all investors. There is a possibility that you could sustain a loss **in excess of your initial investment**. You should not invest money that you cannot afford to lose. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite. Past performance is not indicative of future results.
#### **HIGH-RISK INVESTMENT WARNING: FOREIGN EXCHANGE (FOREX) & FUTURES**
This document contains important information regarding the significant risks associated with trading Foreign Exchange (Forex) and Futures contracts. Please read it carefully.
**1. High Leverage & Magnified Losses:**
Forex and Futures are typically traded on margin, meaning you can control a large position with a relatively small amount of capital. While leverage can magnify profits, it also **dramatically magnifies losses**. Even a small adverse market movement can result in substantial losses that exceed your initial deposit. You may be required to deposit additional funds at short notice to maintain your position.
**2. Extreme Market Volatility:**
The prices of currencies and futures contracts are highly volatile and can fluctuate rapidly due to a variety of factors including, but not limited to: economic news releases, political events, central bank policies, market sentiment, and unforeseen global events. This volatility can lead to rapid and significant losses.
**3. Liquidity Risk:**
While major currency pairs are highly liquid, this can change during periods of market stress or with exotic currency pairs and some futures contracts. A lack of liquidity can lead to difficulty in executing trades at your desired price, resulting in "slippage" and larger-than-anticipated losses.
**4. Counterparty Risk:**
You are trading with a counterparty, typically your broker. There is a risk that the counterparty may fail to meet its financial obligations to you. It is crucial to use brokers that are well-capitalised and regulated by reputable financial authorities.
**5. Complex Instruments:**
Futures and Forex are complex financial instruments that require a deep understanding of the markets. Trading them without sufficient knowledge and experience significantly increases the risk of loss.
**6. No Guarantee of Profit:**
There is no strategy, system, or individual that can guarantee profits in Forex or Futures trading. All trading involves a known risk of loss. Past performance of a trading system or strategy is **not a reliable indicator of future results**.
**7. Psychological Risk:**
Trading can be emotionally challenging. Fear, greed, and the inability to stick to a trading plan can lead to poor decision-making and substantial financial losses.
**WHO IS THIS SUITABLE FOR?**
Trading Forex and Futures is only suitable for individuals who:
* Understand and accept the high risk of losing their entire investment.
* Have the financial capacity to absorb losses that exceed their initial deposit.
* Possess the necessary experience and knowledge to navigate volatile and complex markets.
* Have sought independent financial advice if they are unsure.
**YOUR ACKNOWLEDGMENT**
By engaging in Forex and/or Futures trading, you acknowledge that you have read, understood, and accept all the risks outlined herein. You are solely responsible for your trading decisions and their financial outcomes.
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**Disclaimer:** *This risk warning is for informational purposes only and does not constitute financial, legal, or tax advice. You should consult with a qualified professional before making any investment decisions.*