Risks Associated With Binary Options and Forex Trading
Trading foreign currencies can be a challenging and potentially profitable opportunity for investors of all skill levels. However, before deciding to participate in binary options trading, you should carefully consider your investment goals, level of experience, and risk tolerance level. Most importantly, do not invest money you cannot afford to lose.
There is considerable exposure to risk in any foreign exchange transaction, but particularly with the largely unregulated binary options industry. Any transaction involving currencies involves risks including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price or liquidity of a currency.
Investments in foreign exchange and binary options speculation may also be susceptible to sharp rises and falls as the relevant market values fluctuate. The all-or-nothing nature inherent in binary options trading means that any market movement will have an equally proportional effect on your deposited funds. This can work against you as well as in your favor.
Not only may investors get back less than they invested, but in the case of higher risk strategies, investors may lose the entirety of the their invested amount in their binary options broker. It is for this reason that when speculating in volatile markets such as the Foreign Exchange Market it is advisable to use only capital you can afford to risk.
Trading binary options carries a high level of risk, and may not be suitable for all investors. Past performance of strategies and indicators is not indicative of future results. Before deciding to invest in foreign exchange trading binary options you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Hypothetical Results Disclaimer
THESE RESULTS ARE BASED ON SIMULATED OR HYPOTHETICAL PERFORMANCE RESULTS THAT HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE THE RESULTS SHOWN IN AN ACTUAL PERFORMANCE RECORD, THESE RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, BECAUSE THESE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THESE RESULTS MAY HAVE UNDER-OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED OR HYPOTHETICAL TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THESE BEING SHOWN.
No representation is being made that any account will or is likely to achieve profits or losses similar to those that may be shown. Past performance is not indicative of future results. Individual results vary and no representation is made that clients will or are likely to achieve profits or incur losses comparable to those that may be shown.
Electronic Trading Risks
Before you engage in transactions using any electronic system, you should carefully review the rules and regulations of the exchanges offering the system and/or listing the instruments you intend to trade. Online trading has inherent risk due to system response and access times that may vary market conditions, system performance, and other factors. You should understand these and additional risks before trading.