General risk warning #
This notice is given by AuxiliumFX Limited and forms part of our Client Agreement. It cannot cover every risk. If you are unsure whether CFD trading is suitable for you, get independent advice before you trade.
Leverage risk #
Leverage lets you control a large position with a small deposit (margin). A small price movement against you can cause a large loss, and you can lose your entire deposit very quickly. For example, with leverage of 1:100, a 1% move against your position equals a 100% loss of the margin used for that position.
Margin calls and stop-out #
If the value of your account falls below the required margin, your positions may be closed automatically at the next available price without further warning. In fast markets the closing price may be much worse than the price at which the stop-out level was reached.
Market volatility and gaps #
Prices can move sharply, for example around economic news, central bank decisions, earnings releases, political events or weekends. Prices may “gap” from one level to another without trading in between. Stop-loss orders do not guarantee a price and may be executed at a worse level than requested.
Liquidity risk #
Some instruments, or all instruments at certain times, may have low liquidity. This can widen spreads, cause slippage, or make it impossible to open or close a position at the price you want.
Counterparty and over-the-counter risk #
CFDs are traded over the counter, not on a regulated exchange. The Company is normally your counterparty, so you are exposed to the Company’s ability to meet its obligations. AuxiliumFX Limited is a company registered in Saint Lucia and is not licensed by a financial regulator, so investor compensation schemes do not apply.
Cryptocurrency CFDs #
Cryptocurrency prices are extremely volatile and can move by large percentages in a short time, including on weekends. These markets are largely unregulated and can be affected by hacks, exchange failures, regulatory announcements and manipulation. Crypto CFDs carry a higher risk than most other CFDs.
Costs, swaps and currency risk #
Spreads, commissions and overnight swap charges reduce your returns, especially if you hold positions for a long time. If your account currency differs from the currency of the instrument, exchange rate movements will also affect your profit or loss.
Technology and platform risk #
Trading online depends on hardware, software and internet connections. Failures, delays, outages or cyber attacks may prevent you from placing, changing or closing orders. Using expert advisors, copy trading or third-party tools adds further risk, and we are not responsible for their performance.
No advice and past performance #
We do not provide investment advice. Market analysis, signals and educational content are general information only. Past performance is not a reliable indicator of future results, and forecasts are not guaranteed.
Tax #
You are responsible for any taxes due on your trading in your country of residence. Tax rules can change. Please seek independent tax advice.
Your acknowledgement #
By opening an account you confirm that you have read and understood this Risk Disclosure, that you accept these risks, and that you are trading with money you can afford to lose.
