This notice provides you with information about the risks associated with the financial products offered by Nexa FX Global Ltd. ("the Company," "we," "us"). This notice does not explain all of the risks involved or how such risks relate to your personal circumstances. It is important that you read and understand all our legal documentation before opening an account.
1. Risk of Leverage
Leverage (or margin trading) allows you to open a large position with a relatively small amount of capital. While this can amplify your potential profits, it also equally amplifies your potential losses. A small adverse market movement can have a significant impact on your trading account, and you could lose your entire deposited capital. In some cases, your losses could exceed your initial deposit, making you liable for any deficit in your account.
2. Market Volatility
The prices of financial instruments are subject to rapid and unpredictable fluctuations due to a variety of factors, including but not limited to economic news, geopolitical events, government policies, and market sentiment. These fluctuations can cause significant changes in the value of your positions.
3. Execution Risks (Slippage and Gapping)
While we aim to provide the best possible execution for your trades, market conditions can affect execution. Slippage occurs when your order is executed at a different price from the one you requested. This can happen during periods of high volatility. Gapping occurs when the market opens at a price significantly different from the previous closing price. This can cause stop-loss orders to be executed at a less favorable price than requested, resulting in larger-than-expected losses.
4. Liquidity Risk
In certain market conditions, such as during periods of low trading volume or extreme volatility, it may be difficult or impossible to liquidate a position. This can prevent you from closing a trade at your desired price, potentially leading to substantial losses.
5. Technical Risk
Trading via an online platform carries risks associated with system failures. This includes failures of hardware, software, internet connectivity, and power supply on your side or ours. Any such failure could prevent you from placing, modifying, or closing orders, or from accessing your account.
6. No Investment Advice
Nexa FX provides an "execution-only" service. We do not provide any personal investment advice, recommendations, or tax advice. Any market analysis, news, opinions, or other information provided on our website or through our communications is for informational purposes only and does not constitute an offer or solicitation to trade.
7. Counterparty Risk
When you trade CFDs with Nexa FX, you are entering into an over-the-counter (OTC) transaction directly with us as your counterparty. This means you are exposed to the risk of our insolvency or failure to meet our obligations. We mitigate this risk through our adherence to strict CySEC regulatory requirements, including the segregation of client funds.
8. Client Acknowledgement
By opening a trading account with Nexa FX Global Ltd., you acknowledge that you have read, understood, and accept all the risks disclosed in this document and in our other legal documentation. You confirm that you are trading with risk capital and that you understand the high-risk nature of these products.
If you do not understand the risks involved, please seek independent financial advice before proceeding.