Risk Warning

Before engaging in forex margin trading or other high-leverage financial products, it is essential to understand and be fully aware of all related risks. The following information is intended to remind investors of the main risks and precautions they may encounter during trading.

Margin Trading Risks

Forex margin trading is a high-risk investment and may not be suitable for all investors. High-leverage trading can amplify profits, but it can also magnify losses. Therefore, before deciding to invest in forex, please carefully consider the following:

• Are your investment goals clear?
• Do you have sufficient trading experience?
• Can you bear the potential loss of your invested capital?

You may lose your entire investment, so ensure that you do not use funds you cannot afford to lose. If you have any questions about forex investing, be sure to consult a professional financial advisor for proper guidance.

Online Trading Risks

Online trading systems carry certain risks, including but not limited to:

• Hardware failures
• Software malfunctions
• Network connectivity issues
• Unexpected interruptions in communication

Since brokers cannot control the transmission, reception, or routing of network signals, your device configuration or network reliability is beyond the broker’s control. Therefore brokers are not responsible for communication failures, miscommunications, or delays during online trading. It is recommended that you familiarize yourself with phone order procedures in case network issues prevent online trading.

Rapid Market Fluctuations and News Risks

Markets may experience sharp movements due to major economic data releases or breaking news. In fast-moving markets, market orders (including stop-loss and take-profit orders) may be executed at prices that differ from the requested levels. The final execution price depends on market conditions, not the investor’s specified price.

Important Note:Stop-loss and take-profit orders do not guarantee execution at the preset price. They are price-triggered market orders, and in highly volatile markets, they may be executed at prices significantly worse than expected. Traders should understand and accept this slippage risk.

Whether using a variable spread or fixed spread platform, slippage cannot be entirely avoided during rapid market movements. However, in such cases, non-dealer platforms generally provide smoother execution than market maker platforms.

Recommendation for Demo Trading

We strongly recommend that investors practice with a demo account before opening a live account to familiarize themselves with the trading platform and procedures. However, investors should also be aware that the psychological pressure in demo trading differs significantly from real trading. Even if you perform well in demo trading, be mentally prepared for the challenges of live trading.

Other Risk Warnings

Additional common risks associated with forex margin trading include:

• Difficulty executing trades at expected prices during low market liquidity.
• Potential inability to execute trades under extreme market conditions.
• Exchange rate fluctuations that can impact both profits and the cost of holding positions.

Be sure to thoroughly understand and evaluate all trading risks before making informed investment decisions.