The purpose of this notice is to describe the major risks of foreign exchange transaction. This is a general risk warning to the investors (you, your, clients, customers) and the Information provided herein is of a general nature dealing with all the products offered by Vision Financial Services (we, our, us, “VFS”).
THIS RISK WARNING NOTICE CANNOT AND DOES NOT DISCLOSE ALL OF THE RISKS OF TRADING IN FOREIGN EXCHANGE WITH VFS.
It is very important that you read and comprehend the following risks associated with trading foreign exchange before you begin trading with your Vision Financial Services account.
High Risk Investment
Foreign exchange transactions bring about a high level of risk, and are not suitable for everyone. By letting the client open an account with VFS does not VFS implicitly or explicitly approves of the customer’s investment strategy, financial situation or needs, or competence to trade in the offered products. It’s up to the customer to ensure that they have the required knowledge. Any pre-opening assessment done by VFS is for account opening purpose only.
Before entering this market, it is crucial that you carefully reflect over your investment objectives, trading proficiency, and ability to deal with risk. It is possible to lose all the money you invested in a trade, and we advise against depositing and investing in any funds that have been borrowed from others.
The price and liquidity of a currency or currency pair can be influenced by changes in the political, economic, and natural states of those countries, and any transactions involving currencies are subject to volatile market conditions. VFS is not responsible for the monitoring of your account in this regard. In addition, Past performance is not a reliable indicator of future performance and VFS does not give any guarantee for future performance.
VFS aims to provide clients with the best execution available and to get all orders filled at the requested rate. However, there are times when, due to an increase in volatility or volume, orders may be subject to slippage and difference may exist between the raw price and the final price. Slippage most commonly occurs during fundamental news events or periods of limited liquidity. It may also occur after trading hours that may impact the next day opening price. In case of such events the pending positions or orders cannot be altered or modified. Therefore, risks exist involved in holding open positions during this time. In this regard, VFS doesn’t bear any responsibility for any trading losses you might incur as a result of slippage or disparity between final price and raw price.
Website & Platform Content
All content, including but not limited to news, prices, research, analyzes, and opinions on this website, is provided as general market commentary, and does not serve as investment advice. VFS will not accept liability for any loss or damage that may result from usage or dependence on website or platform content. Although VFS checks frequently to ensure that the content on the website and platform is accurate, it does not warrant that all information is accurate and true. Additionally, the content on the website and platform may be updated any time without notice.
VFS’s content, services, and investments are not intended for residents in any country where such distribution or use would be contrary to local law or regulation. Visitors to this website or the VFS platform are responsible for understanding the terms and conditions, and shall not be considered a solicitation to any person in any authority where such an act would be illegal. Please contact us should any questions or concerns arise.
This brief statement does not disclose all the risks associated with foreign exchange trading (“forex”). Because all customer accounts are self-directed, it is important that customers understand the substantial risks and losses that may arise as a result of their trades. Please review the following risks prior to trading in order to determine whether trading is appropriate for you and if it meets your financial objectives, experience, and available resources.
During periods of high volume, order processing delay may occur. This is a condition where an order is in the process of executing but execution has not yet been confirmed. In such condition, the order is in the process of being executed, but is pending. During periods of heavy trading volume, it is possible that a queue of orders will form. That increase in incoming orders may sometimes create conditions where there is a delay in confirming certain orders.
Depending on the type of order placed, outcomes may vary. In the case of a Market Range order that cannot be filled within the specified range, or if the delay has passed, the order will not be executed. In the case of a Market order, every attempt will be made to fill the order at the next available price in the market. In both situations, the “status” column in the “orders” window will typically indicate “executed” or “processing.” The trade will simply take a few moments to move to the “open positions” window. Depending upon the order type, the position may in fact have been executed, and the delay is simply due to heavy internet traffic.
Keep in mind that it is only necessary to enter any order once. Multiple entries for the same order may slow or lock your computer or inadvertently open unwanted positions.
VFS doesn’t bear any responsibility for any trading losses you might incur as a result of any delays on your side and our side or glitches in trading platform.
Foreign exchange transactions will be affected by fluctuations in currency rates when converting from one currency to another. The USD account consequently may be different from accounts denominated by other currencies. Thus, profits or losses made from transactions will be affected by these fluctuations as well.
Prices offered by VFS for customers’ trades will only be legitimate at the exact date and at the exact time that the price is conferred upon them. In situations where markets have high volatility, the expected price may be different than the price at which the trade was carried out with. Slippage is the term used to describe this occurrence, and it is the difference between the two prices. Under these circumstances, trades will be executed at the exchange rate at the time the order is received by VFS’s server. Slippage may prove to be advantageous at times, but may also prove to be disadvantageous, depending on market condition.
The Client is warned of the following technical risks, in addition to the ones stated in the Client Agreement:
- The Client and not the Company shall be responsible for the risks of financial losses caused by failure, malfunction, interruption, disconnection or malicious actions of information, communication, electricity, electronic or other systems.
- If the Client undertakes transactions on an electronic system, he will be exposed to risks associated with the system including the failure of hardware, software, servers, communication lines and internet failure. The result of any such failure may be that his order is either not executed according to his instructions or it is not executed at all. The Company does not bear any liability in the case of such a failure.
- The Company has no responsibility if unauthorized third persons gain access to Client information, including electronic addresses, electronic communication and personal data, access data when this is due to the Client’s negligence or when the above are transmitted between the Company and the Client or any other party, using the internet or other network communication facilities, telephone, or any other electronic means or post.
- The Client acknowledges that the unencrypted information transmitted by e-mail is not protected from any unauthorized access.
- At times of excessive deal flow the Client may have some difficulties to be connected over the phone or the Company’s system(s), especially in volatile Market (for example, when key macroeconomic indicators are released).
- The Client acknowledges that the internet may be subject to events which may affect his access to the Company’s system(s), including but not limited to interruptions or transmission blackouts, software and hardware failure, internet disconnection, public electricity network failures or hacker attacks. Unless otherwise specified at the Agreement, the Company is not responsible for any damages or losses resulting from such events which are beyond its control or for any other losses, costs, liabilities, or expenses (including, without limitation, loss of profit) which may result from the Client’s inability to access the Company’s Systems or delay or failure in sending orders or Transactions.
- The Client is warned that while trading in an electronic platform he assumes risk of financial loss which may be a consequence of amongst other things:
- Failure of Client’s devices, software and poor quality of connection.
- The Company’s or Client’s hardware or software failure, malfunction or misuse.
- Improper work of Client’s equipment.
- Wrong setting of Client’s Terminal.
- Delayed updates of Client’s Terminal.
- In connection with the use of computer equipment, data and voice communication networks, the Client solely bears the following risks, amongst other risks, in which cases the Company has no liability of any resulting loss (unless otherwise specified at the Agreement):
- Power cut of the equipment on the side of the Client or the provider, or communication operator (including voice communication) that serves the Client.
- Physical damage (or destruction) of the communication channels used to link the Client and provider (communication operator), provider, and the trading or information server of the Client.
- Outage (unacceptably low quality) of communication via the channels used by the Client, or the channels used by the provider, or communication operator (including voice communication) that are used by the Client.
- Wrong or inconsistent with requirements settings of the Client Terminal.
- Untimely update of the Client Terminal.
- When carrying out transactions via the telephone (land or cell phone lines) voice communication, the Client runs the risk of problematic dialing, when trying to reach an employee of the broker service department of the Company due to communication quality issues and communication channel loads.
- The use of communication channels, hardware and software, generate the risk of non-reception of a message (including text messages) by the Client from the Company.
- Malfunction or non-operability of the trading system (platform), which also includes the Client Terminal.
- Outage (unacceptably low quality) of communication via the channels used by the Company, in particular physical damage (destruction) of the communication channels by third parties.
‘Force Majeure’ means an event which is beyond the reasonable control of an affected party including without limit any Market Disruption, acts or restraints of government(s) or public authorities, war, revolution, strikes or other industrial action, fire, flood, natural disaster, explosion, terrorist action, the suspension or limitation of trading by any execution venue, or any breakdown, failure, defective performance or malfunction of any telecommunications settlement or other equipment or systems. On the occurrence of such events, VFS doesn’t bear any responsibility for any trading losses you might incur as a result of force majeure.