Risk Disclosure Statement for EDCMarket.com, operated by EDC ADVISORS LIMITED (company number 09460330) located at York House, 1 Seagrave Road, London, United Kingdom, SW6 1RP
CFDs (Contracts for Difference) are complex instruments that come with a high risk of losing money rapidly due to leverage. The majority of retail investor accounts lose money when trading CFDs. It is important that you understand the risks involved before deciding to trade CFDs with EDCMarket.com.
Trading in CFDs carries a high level of risk and may not be suitable for all investors. You should be aware of the following risks associated with CFD trading:
- Leverage Risk:
CFD trading involves the use of leverage. Leverage allows traders to open a position with a fraction of the total value of the trade. While leverage can amplify profits, it can also magnify losses. As a result, traders can lose more than their initial investment.
- Market Risk:
CFD trading involves the risk of market volatility. The value of the underlying asset can change rapidly, resulting in significant gains or losses. You should be aware that market volatility can be affected by a wide range of factors such as economic events, political developments, and natural disasters.
- Counterparty Risk:
When you trade CFDs, you enter into a contract with EDCMarket.com. This means that you are exposed to the risk that EDCMarket.com may not fulfill its obligations under the contract. In the event of EDCMarket.com’s insolvency, your funds may not be protected and you may lose your entire investment.
- Liquidity Risk:
CFD trading can also carry a liquidity risk. This means that in certain market conditions, it may be difficult to execute trades at a desired price or at all. This can result in losses or missed opportunities.
- Overnight Financing Charges:
If you hold a CFD position overnight, you may be subject to overnight financing charges. These charges can be positive or negative, depending on the interest rate differential between the currencies in the pair. You should be aware that these charges can significantly affect the profitability of your trades.
- Margin Calls:
CFD trading involves margin, which is the amount of funds you must deposit to open and maintain a position. If the value of your position falls below a certain level, you may be required to deposit additional funds to meet a margin call. Failure to meet a margin call may result in the closure of your position, which can result in losses.
- Information Risk:
CFD trading requires you to make decisions based on market information. This information may be inaccurate, incomplete, or delayed. You should be aware that any decisions you make based on this information are solely your own and that EDCMarket.com is not responsible for any losses that may result.
- Regulatory Risk:
CFD trading is subject to regulatory risks. Regulations can change quickly and may have a significant impact on the CFD market. You should be aware that changes in regulations can result in increased costs, changes in trading conditions, and potentially the closure of EDCMarket.com.
- Execution Risk:
CFD trading involves the risk of execution problems, such as order slippage or order rejection. These problems can occur due to a variety of reasons, including technical issues, market volatility, and network outages. You should be aware that these problems can result in losses or missed opportunities.
- System Risk:
CFD trading is conducted over electronic trading platforms, which can be subject to system failures, disruptions, or other technical problems. These problems can result in delays or inaccuracies in the execution of trades, and may also affect the availability of trading platforms. You should be aware that system problems can result in losses or missed opportunities.
- Tax Implications:
CFD trading may have tax implications, which can vary by jurisdiction. You should consult with a tax professional to understand the tax implications of CFD trading in your country of residence.
- Information Security:
CFD trading involves the transmission of sensitive information over electronic networks. You should be aware that there is a risk that this information may be intercepted, tampered with, or otherwise compromised. You should take appropriate measures to protect the security of your information and systems.
Please note that this is not an exhaustive list of risks associated with CFD trading. Before deciding to trade CFDs with EDCMarket.com, you should carefully consider your investment objectives, level of experience, and risk appetite. If you are unsure whether CFD trading is suitable for you, you should seek independent financial advice.
By using the services of EDCMarket.com, you acknowledge that you have read and understood the risks associated with CFD trading. You also acknowledge that you are willing to assume these risks, and that you are solely responsible for your trading decisions and the results thereof.
You should be aware that past performance is not indicative of future results. Any historical data provided by EDCMarket.com should not be relied upon as a guarantee of future performance.
You should also be aware that EDCMarket.com may provide market commentary, news, and analysis on its website or through other channels. This information is provided for informational purposes only and should not be considered as investment advice. You should not rely solely on this information when making trading decisions.
In addition to the risks outlined in this document, there may be other risks associated with CFD trading. You should carefully consider all of the risks before deciding to trade CFDs with EDCMarket.com.
If you have any questions or concerns regarding the risks associated with CFD trading or the services provided by EDCMarket.com, please contact our customer support team.
