RISK DISCLOSURES & WEBSITE TERMS OF USE
BY UTILIZING THE VAM FOREX WEBSITE IN ANY MANNER, YOU, THE USER, EXPRESSLY ACKNOWLEDGE AND AGREE THAT THE USE OF ANY AND ALL OF THE INFORMATION AND DATA PROVIDED ON THE VAM WEBSITE IS AT YOUR OWN RISK.
Suitability. Off-exchange retail foreign currency trading and investments are not suitable for everyone. Forex trading carries a high level of risk and the possibility exists that you could sustain a loss of all or more of your forex trading investment. Before you decide to trade forex options or trade forex spot markets, you should be aware of all risks associated with trading forex. If you would like more information about the risks of online forex trading, please contact us to discuss foreign currency trading risks in detail.
Leverage. The definition of leverage is as follows: "the use of credit or borrowed funds to improve one's speculative capacity and increase the rate of return of an investment, as in buying and/or selling forex contracts on margin."
In simplest terms, this means you can choose to use a relatively small amount of initial capital (margin) to leverage a much larger forex contract. For example, 100:1 leverage can be explained like this: for every $1,000 USD a client has in his or her trading account, that client can effectively "leverage" a forex contract worth $100,000 USD. VAM FOREX clients can choose to either buy or sell forex contracts and can choose to utilize leverage up to 400:1 depending on the FCM (much greater leverage is available for options contracts). If you are unsure how margins for spot and options contracts work, please click here.
However, leverage is a double-edged sword because leverage can not only lead to exponentially large profits, it can also lead to exponentially large losses as well. VAM FOREX wants to make sure each and every investor, whether or not he or she chooses to open an account with VAM FOREX, is aware of both the potential benefits and downside risks of leverage.
High Risk of Trading in Fast Markets. Forex rates may become volatile before, during and/or after economic report releases, breaking news and virtually any other event that could affect financial markets. Times in which forex rates become volatile are known as "fast markets" in which bid/ask spreads may widen significantly and/or forex rates may gap up and/or down quickly (increase or decrease in the forex rate by more than the smallest trading unit). Customers who choose to trade during fast markets do so at their own risk and should expect to experience widened bid/ask spreads, re-quotes and fills at significantly worse rates than expected.
High Risk of Leaving a Position Open Over the Weekend or a Non-Trading Holiday. Good-til-cancelled (GTC) orders working as of Friday's market close may not be filled until trading resumes on Sunday or, in the case of a holiday, until the next day the forex market is open for trading. Forex rates may gap up and/or down significantly (increase or decrease in the forex rate by more than the smallest trading unit) over the weekend or over a holiday. Such instances of forex rates gapping over the weekend or over a non-trading holiday could result in significant losses for the trader and fills that are significantly worse than expected.
Undermargined Accounts. The FCM/Dealer may, at its own discretion, close any or all open positions in a forex trader's account in the event that the trader's forex trading account balance falls below the maintenance margin level. For more information, click here: How Margins Work
Market Opinions. All opinions, news, research, analysis, prices or other information contained on this website are provided as general market commentary and do not constitute investment advice. VAM FOREX will not accept liability for any loss or damage, including, but without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
Internet Trading Risks. The trading platforms provided by FCMs/Dealers (through VAM FOREX as the Introducing Broker) provide sophisticated order entry and tracking of orders. Trading on-line, no matter how convenient or efficient, does not necessarily reduce risks associated with currency trading. All quotes and trades are subject to the terms and conditions of the respective FCM/Dealer Client Agreements accessible and available through VAM FOREX and the respective FCM/Dealer.
Risks associated with utilizing an Internet-based deal execution trading system including, but not limited to, the failure of hardware, software and Internet connection. Since VAM FOREX does not control signal power, its reception or routing via Internet, configuration of your equipment or reliability of its connection, we cannot be responsible for communication failures, distortions or delays when trading via the Internet. The trading platform operators utilized by VAM FOREX clients employ back-up systems and contingency plans to minimize the possibility of system failure, and trading via telephone is always available.
Accuracy of Information. The content on this web site is subject to change at any time without notice and is provided for the sole purpose of assisting traders in making independent investment decisions. VAM FOREX has taken reasonable measures to ensure the accuracy of the information on the web site, however, the company does not guarantee its accuracy and will not accept liability for any loss or damage which may arise directly or indirectly from the content or your inability to access the web site, for any delay in or failure of the transmission or the receipt of any instruction or notification sent through this web site.
Links to Non-VAM FOREX Affiliated Sites. Some links on the VAM FOREX website will take you to a website owned and/or operated by an entity other than VAM FOREX and/or VAM FOREX affiliated entities or divisions. By clicking on such a link, (a) you assume all risks of using such website, (b) you understand such website may have different terms of use than the VAM FOREX website and (c) neither VAM FOREX nor any of its companies, divisions or affiliated persons shall be held liable in any way for the use of any website or business conducted with any other entity.
Distribution. This site is not intended for distribution, or use by, any person in any country where such distribution or use would be contrary to local law or regulation. None of the services or investments referred to in this web site are available to persons residing in any country where the provision of such services or investments would be contrary to local law or regulation. It is the responsibility of visitors to this web site to ascertain the terms of and comply with any local law or regulation to which they are subject.