Foreign Currency Trading Foreign Exchange is the simultaneous buying of one currency and selling of another. The foreign exchange market (FOREX) is the largest financial market in the world with a daily turnover of over $1.5 trillion, more than three times the aggregate amount of the United States Equity and Treasury markets combined. Unlike other financial markets, the Forex market has no physical location, no central exchange. It operates through an electronic network of banks, corporations and individuals trading one currency for another. This lack of a physical exchange enables the Forex market to operate on a 24-hour basis, moving from one time zone to the next, across each of the world's major financial
Risk of Loss Foreign Currency Trading is Highly Leveraged. Because low margin deposits normally are required, an extremely high degree of leverage is obtainable in foreign currency trading. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit; this may work against you as well as for you. You may sustain a total loss of initial margin funds and any additional funds deposited with FX Solutions.
The Possibility of Incurring Deficit Balance Foreign Currency Trading is Highly Leveraged. Because low margin deposits normally are required, an extremely high degree of leverage is obtainable in foreign currency trading. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit; this may work against you as well as for you. You may sustain a total loss of initial margin funds and any additional funds deposited with FX Solutions. During the extreme price volatility in fast markets, currency pair prices will "gap" and spreads widen. A price gap occurs when the price of a currency pair either jumps or plummets from its last bid/offer quote to a new quote, without ever trading at prices in between those quotes. This fast market gap may cause you to lose more than you have in your account causing a negative balance in your account. You may be required to make up this deficit.
FX Solutions' Margin Policy Customer is required to maintain at all times adequate equity in their account to cover any and all FX transactions. FX Solutions at its sole and absolute discretion without notice to client may close all open positions in a clients account when the equity in that account falls below the required (used) margin. FX Solutions, LLC may increase or decrease applicable margin requirements at its sole and absolute discretion without notice.