Risk of Trading

Effect of Leveraged Trading
Spot Forex transactions carry a high degree of volatility and risk. The amount of initial margin is small relative to the value of the Spot Forex contract. The usual practice in the industry is a margin deposit of $1,000 can control a market value of approximately up to $100,000. The transactions are highly leveraged. This means a relatively small market movement will have a proportionately larger impact on the funds you have deposited; this may work for you as well as against you. You may sustain a total loss of initial margin funds and any additional funds deposited with the firm to maintain your positions. Given the possibility of losing a substantial investment, trading funds should only consist of risk capital or funds that an individual or an institution can afford to lose.

Off-exchange Transaction
Spot Forex transactions are not conducted on organized futures exchanges. The firm with which you deal may be acting as your counter party to the transactions. It may be difficult or impossible, though rarely in the spot Forex transactions, to liquidate an existing position, to assess the value, to determine a fair price or to assess the exposure to risk. For these reasons, spot Forex transactions may involve increased risks. Spot Forex dealers may, from time to time, execute transactions as your agent on the foreign exchange market to trade currencies pursuant to an agreement between the agent and the Forex dealers, and that a trade executed with one bank may be offset by a trade by another banking agent.

Market Opinions Expressed by Representatives
Any opinions expressed by SparkFX representatives as to the future direction of prices of specific currencies do not guarantee any certain results as there are many factors in trading beyond our belief or control. In no event should SparkFX have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party as a result of the information provided in any form. It is the responsibility of each and every trader to educate themselves and gain sufficient information before executing any trade.