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Copyright © 2006 Cagco Trading Inc.
Disclaimer: Cagco Trading Inc is compensated for its services through a
portion of the bid/ask spread. Trading foreign currencies is a challenging and
potentially profitable opportunity for educated
and experienced investors. However, before deciding to participate in the Forex
market, you should carefully consider your investment objectives, level of
experience and risk appetite. Most
importantly, do not invest money you cannot afford to lose. There is
considerable exposure to risk in any foreign exchange transaction. Any
transaction involving currencies involves risks including,
but not limited to, the potential for changing political and/or economic
conditions that may substantially affect the price or liquidity of a currency.
More over, the leveraged nature of FX trading
means that any market movement will have an equally proportional effect on your
deposited funds. This may work against you as well as for you. The possibility
exists that you could sustain a total
loss of initial margin funds and be required to deposit additional funds to
maintain your position. If you fail to meet any margin call within the time
prescribed, your position will be liquidated
and you will be responsible for any resulting losses. Investors may lower their
exposure to risk by employing risk-reducing strategies such as 'stop-loss' or
'limit' orders.
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