Risk Warning
The company Nexium Markets provides services related to trading on financial markets, including contracts for difference (CFDs) and Forex currency pairs. Trading these instruments involves a high level of risk and can lead to significant financial losses, up to and including the loss of all invested capital. This document is intended to familiarize Clients with possible risks, but is not an exhaustive description of all potential threats and nuances.
1. Risks associated with CFD and Forex trading
CFD trading is highly speculative and may not be suitable for all investors. By participating in such transactions, Clients may incur losses that exceed their initial investment. The use of leverage (“multiplier function”) increases potential risks, as even small market fluctuations can have a significant impact on the Client’s balance.
2. Leverage and margin requirements
In order to trade CFDs, Clients are required to maintain a minimum margin level, which is only a part of the full contract value. Trading with leverage increases both potential profit and potential losses. The slightest market movement in the direction opposite to the Client’s position can lead to a rapid change in balance.
In the event that the market moves against the Client’s position and margin requirements increase, Nexium Markets may close the Client’s positions to prevent further losses. The Client is responsible for any losses incurred as a result of such actions.
3. Client’s Responsibility
The Client undertakes to:
- Monitor their positions and margin levels.
- Monitor all current transactions, taking into account the impact of leverage, which can both increase potential profit and accelerate the process of incurring losses.
- Ensure that there is sufficient capital to cover possible losses and margin requirements.
Nexium Markets is not responsible for losses incurred due to insufficient monitoring of positions by the Client.
4. Legal Restrictions and Tax Obligations
Each Client must comply with the laws of their country of residence and notify the relevant government authorities of their transactions if required by rules and regulations. If necessary, the Client must independently account for taxes levied on income from trading activities.
5. Force Majeure
Nexium Markets is not liable for financial losses caused by force majeure, including but not limited to:
- Natural disasters and extreme weather conditions.
- Military conflicts, terrorist acts, revolutions and mass riots.
- Any decisions of government bodies that may affect the possibility of trading operations.
- Illegal actions of third parties resulting in the loss of access to trading funds or delay in the execution of transactions.
Nexium Markets is not liable for losses incurred due to insufficient control of positions by the Client.
6. Limitation of Liability
This risk warning cannot and should not be considered as a complete disclosure of all possible risks. The Client must independently assess their financial capabilities and level of risk tolerance. In case the risk of trading operations and investments in CFD and Forex does not seem acceptable to the Client, it is recommended to stop using the services of Nexium Markets.
Nexium Markets strongly recommends that each Client carefully reads the presented risks and takes them into account when planning their trading operations.