Risk Disclosure
- Acknowledgment of Risks: It should start by acknowledging that trading in the forex market and other financial instruments carries a high level of risk and may not be suitable for all investors.
- Capital Loss Potential: The disclosure must state that there is a significant risk of losing part or all of the initial investment. Therefore, individuals should not invest money that they cannot afford to lose.
- Market Volatility and Leverage: It should highlight how market volatility and leverage can both amplify gains and losses.
- Advice from Independent Financial Advisor: Encouragement to seek advice from an independent financial advisor if the risks or financial instruments are not fully understood.
- No Guarantee of Profit: A statement that there are no guarantees of profit or protection from losses in the forex market.
- Regulatory Conditions: Mention of how changes in regulatory conditions can affect market conditions and trading.
- Internet Trading Risks: If applicable, a section on the risks associated with internet-based trading systems, including the risk of system failure.
- Market Opinions: Any market opinions, news, research, analyses, prices, or other information offered as general market commentary do not constitute investment advice.