Risk Disclosure Notice FSA

PFX is the trading name

Risk Disclosure Notice V: 1.1

PFX – Risk Disclosure Notice January 2023 V:1.1

CFDs (Contracts for Difference) are agreements between two parties, typically known as “buyer” and “seller,” wherein the seller pays the buyer the difference between the current value of an asset and its value at contract time. This financial derivative allows investors to speculate on price movements of underlying financial instruments without owning them.

1. GENERAL INFORMATION

This document does not disclose all associated risks or other important aspects of CFDs and should not be considered investment advice. Clients should fully understand the nature and risks of CFDs before trading and seek independent legal or financial advice if uncertain.

2. RISKS ASSOCIATED WITH CFDs

a. Leverage Risk: CFDs involve leverage, amplifying potential gains and losses.
b. Gapping Risk: Rapid market fluctuations can result in price “gaps” impacting trades.
c. Stop Loss Orders: May not always protect against losses, especially during rapid price movements.
d. Margin Call and Liquidation Risk: Clients must maintain sufficient funds to cover margin obligations, or risk position liquidation.
e. Risk of Loss: Adverse market movements can lead to loss of invested funds.
f. No Guarantee of Profit: Trading CFDs carries no profit guarantees.
g. No Rights to Underlying Assets: Clients do not own underlying assets with CFDs.

3. OTHER RISKS

Various risks including market, systemic, technical, operational, country, interest rate, foreign exchange, and legal/regulatory risks may affect CFD trading.

4. RISKS BEYOND COMPANY CONTROL

Clients are solely responsible for risks such as lack of knowledge, technical faults, unauthorized access, and force majeure circumstances.