Risk warning

Trading foreign exchange and other Over-the-Counter (“OTC”) derivative products, such as Traded Contracts, is highly speculative and involves significant risk. Such trading is only suitable for Customers who understand and are willing to assume the economic, legal, and other risks involved, and who are financially able to sustain losses up to or exceeding Margin or Deposits. By opening a Trading Account with London Trading Index to speculate or assume risk on Traded Contracts and other products through the Over-the-Counter (“OTC”) market on a “Spot” basis, you assume the following risks:

Leverage

High Leverage and low Margin can result in significant losses due to small price fluctuations in the traded products. High Leverage allows you to assume more risk, magnifying both losses and profits, which can result in a loss up to and exceeding Deposits and Margin. If the market trend is against you, you may sustain a total loss of the initial margin funds and any additional funds deposited to maintain open positions. You are responsible for all your risks, financial resources used, and the chosen trading strategy.

Quotes & Margin

Quotes and Margins are set by London Trading Index and may differ from other firms. We will exercise discretion in setting and collecting Margin. We are authorized to convert funds in your Trading Account for Margin into and from such foreign currency at a rate of exchange determined by us in our sole discretion on the basis of then-prevailing money market rates. You must maintain the minimum Margin Level requirement on your Open Positions at all times. You assume the responsibility to monitor your Required Margin. We have the right to liquidate any or all Open Positions whenever the minimum Margin requirement is not maintained. To avoid a Margin Call, it is highly recommended to maintain a Margin Level of 1000% or greater.

Risk Reduction

Stop Loss Orders or Stop Limit Orders, which are intended to limit losses, may reduce the losses incurred by price fluctuations; however, such orders may not be able to execute under certain abnormal market conditions.

Product Risks

The profit and loss in any given Transaction may be affected by a currency rate used to convert to the Account’s base currency. Accounts shall be opened in the following currencies: USD, as stated by the Customer and accepted by London Trading Index.

Technical

You are responsible for any technical issues sustained on your side, including but not limited to:
a. Failure of your hardware, software, or internet connection;
b. Improper operation of your equipment;
c. Improper settings on your Terminal;
d. Delay of your Terminal updates;
e. MetaTrader Failure on your computer.

You acknowledge that at the moment of peak load, there may be some difficulties in getting telephone communication with the duty operator, especially in a fast market, such as when key economic indicators are released. Please carefully consider these risks before opening a Trading Account with London Trading Index.