Risk disclosure statement
1. Summary warning
Contracts for Difference (CFDs) are complex leveraged instruments. They carry a high risk of losing money rapidly. A significant majority of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
You should not trade with ACSFX Markets unless you understand the nature of the transactions you are entering into, the extent of your exposure to loss, and that you may lose the entire capital you deposit.
2. Leverage and margin
Leverage allows you to open a position with a fraction of its full value. It magnifies gains and losses equally. A small adverse movement in the underlying market can result in a loss that exceeds the margin you committed and consumes a substantial portion of your account.
You are responsible for maintaining sufficient margin at all times. If your margin level falls to the stop-out threshold, open positions will be closed automatically without further reference to you, potentially crystallising losses at the worst available moment.
Margin requirements may be increased at short notice, particularly around scheduled events, elections or periods of market stress. An increase may require you to deposit additional funds or reduce exposure immediately.
3. Market risk
Prices of the underlying instruments are volatile and outside the control of both you and ACSFX Markets. They are affected by economic data, monetary policy, political events, natural disasters and market sentiment, and can move sharply in either direction without warning.
Past performance is not a reliable indicator of future results. Historical price behaviour, backtested strategies and demonstrated returns do not guarantee any future outcome.
4. Liquidity and gapping
Market liquidity varies by instrument and by time of day. In thin conditions, spreads widen and it may become difficult or impossible to execute at your preferred price or in your intended size.
Markets can gap — moving from one price to another without trading at the levels in between. This commonly occurs at market opens following a weekend or holiday, and around unscheduled news. Where a gap occurs, stop-loss orders will be executed at the next available price, which may be materially worse than the level you specified.
5. Order execution risk
Orders are executed at the price available at the time of execution, which may differ from the price displayed when you placed the order. This difference is called slippage and may work for or against you.
Stop-loss orders limit but do not eliminate loss, and are not guaranteed at the specified level. Limit orders may not be filled at all if the market does not reach your price or if insufficient volume is available.
Large orders may be filled across multiple price levels, producing an average execution price that differs from the top of book.
6. Costs and charges
Trading costs — spread, commission and overnight financing — reduce your net result and are incurred whether the trade is profitable or not. Frequent trading multiplies these costs substantially.
Positions held open overnight incur a financing charge or credit at the daily rollover. Over an extended holding period these charges accumulate and may become a significant proportion of the position's value, particularly on instruments with a wide interest rate differential.
7. Technology risk
Online trading depends on hardware, software and internet connectivity. Interruption, failure or malfunction of any of these may prevent you from placing, modifying or closing orders when you intend to.
ACSFX Markets is not liable for losses arising from your own equipment, connectivity or third-party service failures. You should maintain an alternative means of contacting us — such as telephone dealing — for use when you cannot access the platform.
8. Counterparty risk
When you trade a CFD you contract with ACSFX Markets rather than on an exchange. You are therefore exposed to our ability to meet our obligations to you. Client funds are held in segregated accounts, but segregation does not by itself guarantee full recovery in an insolvency.
9. Currency risk
Trading instruments denominated in a currency other than your account base currency exposes you to exchange rate movements independent of the instrument's own performance. A profitable position may still produce a loss after conversion.
10. Suitability
Leveraged trading is not suitable for everyone. It is unsuitable for capital you cannot afford to lose, for funds required for living expenses or debt obligations, or for anyone seeking guaranteed or predictable returns.
You should assess your objectives, financial resources, experience and risk tolerance before trading, and seek independent advice if you are in any doubt.
11. No advice
ACSFX Markets provides an execution-only service. We do not provide investment, legal or tax advice, and nothing on this website, in our research or in any communication from our staff constitutes a personal recommendation or an inducement to enter into any transaction.
Any market commentary, analysis or educational material is general information only. It does not take account of your individual circumstances and should not be relied upon as the basis for a trading decision.
By opening an account with ACSFX Markets you confirm that you have read, understood and accepted this risk disclosure statement in full.