Product disclosure statement:
Important Notice: Trading in leveraged derivatives like Forex and CFDs carries significant risk and may not be suitable for all investors. You should carefully consider your financial circumstances, trading experience, and risk tolerance before entering any trades. It is strongly recommended that you read and fully understand this Risk Disclosure Statement before making any investment decisions.
Key Risks:
- Leverage:
MZX Liquidity offers leveraged CFDs and Forex. This means that your potential losses can be significantly amplified, exceeding your initial investment. You can lose more than you deposit.
- Volatility:
The markets for Forex and CFDs are highly volatile and can experience sudden and unpredictable price movements. This can lead to significant losses on your open positions.
- Liquidity Risk:
There is a risk that you may not be able to readily buy or sell a desired CFD or Forex pair, especially during periods of high market volatility or low liquidity. This could mean that you are unable to close your position at a desired price or at all.
- Margin Calls:
If your account equity falls below a certain level (known as the margin requirement), you will be issued a margin call. You will then be required to deposit additional funds into your account to maintain your open positions. Failure to meet a margin call may result in the forced liquidation of your positions at a loss.
- Counterparty Risk:
MZX Liquidity acts as your counterparty on all CFD and Forex trades. This means that you are directly exposed to the creditworthiness of MZX Liquidity. In the unlikely event that MZX Liquidity becomes insolvent, you may lose some or all of your invested funds.
Other Risks:
- Technical Issues:
Technical issues like platform outages or connectivity problems can prevent you from placing or closing trades, potentially leading to losses.
- Fraud:
There is a risk of fraud in any financial market. You should be aware of the potential for scams and take appropriate precautions to protect your funds.
-Tax Implications:
Depending on your jurisdiction, you may be liable for taxes on your profits and losses from Forex and CFD trading. Measures to Mitigate Risk.
-Set Stop-Loss Orders:
Implement stop-loss orders to automatically close your positions when the market moves against you, limiting your potential losses.
-Manage Your Leverage:
Use leverage cautiously and only when appropriate for your trading experience and risk tolerance.
-Diversify Your Portfolio:
Diversifying your portfolio across different instruments and markets can help to spread your risk.
-Do Your Research:
Conduct thorough research on the instruments you are interested in trading and understand the underlying market conditions.
-Seek Professional Advice: If you are unsure about the risks involved in Forex and CFD trading, it is recommended that you seek professional advice from a qualified financial advisor.
Please Note: This Risk Disclosure Statement is not intended to be exhaustive and does not cover all the risks associated with Forex and CFD trading. You are solely responsible for your own investment decisions and should not rely solely on this information. To access the full MZX Liquidity Risk Disclosure Statement, please visit our website.
We hope this Risk Disclosure Statement has been helpful and informative. If you have any further questions, please do not hesitate to contact us.
Important Notice: Trading in leveraged derivatives like Forex and CFDs carries significant risk and may not be suitable for all investors. You should carefully consider your financial circumstances, trading experience, and risk tolerance before entering any trades. It is strongly recommended that you read and fully understand this Risk Disclosure Statement before making any investment decisions.
Key Risks:
- Leverage:
MZX Liquidity offers leveraged CFDs and Forex. This means that your potential losses can be significantly amplified, exceeding your initial investment. You can lose more than you deposit.
- Volatility:
The markets for Forex and CFDs are highly volatile and can experience sudden and unpredictable price movements. This can lead to significant losses on your open positions.
- Liquidity Risk:
There is a risk that you may not be able to readily buy or sell a desired CFD or Forex pair, especially during periods of high market volatility or low liquidity. This could mean that you are unable to close your position at a desired price or at all.
- Margin Calls:
If your account equity falls below a certain level (known as the margin requirement), you will be issued a margin call. You will then be required to deposit additional funds into your account to maintain your open positions. Failure to meet a margin call may result in the forced liquidation of your positions at a loss.
- Counterparty Risk:
MZX Liquidity acts as your counterparty on all CFD and Forex trades. This means that you are directly exposed to the creditworthiness of MZX Liquidity. In the unlikely event that MZX Liquidity becomes insolvent, you may lose some or all of your invested funds.
Other Risks:
- Technical Issues:
Technical issues like platform outages or connectivity problems can prevent you from placing or closing trades, potentially leading to losses.
- Fraud:
There is a risk of fraud in any financial market. You should be aware of the potential for scams and take appropriate precautions to protect your funds.
-Tax Implications:
Depending on your jurisdiction, you may be liable for taxes on your profits and losses from Forex and CFD trading. Measures to Mitigate Risk.
-Set Stop-Loss Orders:
Implement stop-loss orders to automatically close your positions when the market moves against you, limiting your potential losses.
-Manage Your Leverage:
Use leverage cautiously and only when appropriate for your trading experience and risk tolerance.
-Diversify Your Portfolio:
Diversifying your portfolio across different instruments and markets can help to spread your risk.
-Do Your Research:
Conduct thorough research on the instruments you are interested in trading and understand the underlying market conditions.
-Seek Professional Advice: If you are unsure about the risks involved in Forex and CFD trading, it is recommended that you seek professional advice from a qualified financial advisor.
Please Note: This Risk Disclosure Statement is not intended to be exhaustive and does not cover all the risks associated with Forex and CFD trading. You are solely responsible for your own investment decisions and should not rely solely on this information. To access the full MZX Liquidity Risk Disclosure Statement, please visit our website.
We hope this Risk Disclosure Statement has been helpful and informative. If you have any further questions, please do not hesitate to contact us.
Elevate your IB journey
MZX liquidity acknowledges the Traditional Custodians of Country throughout Australia and recognises their continuing connection to land, sea and community. We pay our respect to Elders past, present and emerging, and extend that respect to all Aboriginal and Torres Strait Islander peoples today.