Risk Warning
Forex and CFD trading risk disclosure
Risk Warning
Forex, CFDs, crypto derivatives, shares, commodities, metals, and other leveraged products involve significant risk. This notice describes important risks in general terms only and cannot explain every risk or how those risks apply to your personal circumstances.
Execution-only risk
TheFXBuddy may provide factual information, platform tools, education, alerts, and market commentary, but you make your own trading decisions. We do not guarantee that any trade, strategy, market, signal, or automated rule is suitable for you.
Loss of capital
Trading is speculative. You may lose some or all of the money deposited in your account, and losses can happen quickly during volatile markets. Do not trade money you cannot afford to lose.
Leverage and gearing
Leverage allows a comparatively small margin deposit to control a larger market exposure. This can magnify profits, but it can also magnify losses and may cause rapid account drawdown or stop-out.
Margin calls and stop-out
You are responsible for monitoring margin level, equity, open positions, and available funds. If margin is insufficient, positions may be closed automatically or manually, possibly at a loss and without prior notice.
Market volatility
Prices may move sharply because of news, economic data, politics, interest rates, market sentiment, liquidity, supply and demand, trading halts, or unexpected events. Fast markets may create wider spreads and worse execution than expected.
Gapping and stop orders
Stop-loss and stop-entry orders can reduce risk but do not guarantee an execution price. Markets may gap from one price to another, especially around news, market open, weekend gaps, or low-liquidity periods.
Liquidity risk
Some instruments may be difficult or impossible to buy, sell, close, or value at a desired time or price. Limited liquidity may increase spreads, slippage, partial fills, or order rejection.
Derivative and CFD risk
CFDs and other derivatives are usually non-deliverable products based on an underlying market. You do not necessarily own the underlying asset, and pricing may depend on platform terms, liquidity providers, and market conditions.
Currency risk
If you trade or hold an account in a currency different from your home currency, exchange-rate movements may affect profit, loss, margin, fees, and account value.
Shares and corporate actions
Share and share-CFD prices may be affected by earnings, dividends, splits, delistings, suspensions, corporate actions, exchange rules, and market gaps. Smaller or emerging-market shares may be harder to trade.
Crypto derivative risk
Crypto markets can be extremely volatile, may trade around the clock, and can move sharply because of technology, regulation, liquidity, sentiment, or platform disruption. Conservative sizing is essential.
Costs and charges
Spreads, commissions, swaps, financing, conversion costs, and other fees affect your net result. Charges may change, and you should understand all costs before opening or holding positions.
Platform and access risk
Internet failure, device issues, app errors, server downtime, data delays, cyber incidents, maintenance, or third-party provider problems may affect your ability to access the platform, place orders, or manage positions.
AI Auto Trading risk
AI tools, automated rules, and alerts can fail, misread conditions, overtrade, or act during abnormal markets. Automation does not remove your responsibility to monitor settings, exposure, and results.
Past performance
Historical data, backtests, chart patterns, education, market analysis, promotional material, or previous results do not guarantee future performance.
Suitability and independent advice
Before trading, consider your knowledge, experience, financial situation, objectives, and risk tolerance. Seek independent financial, legal, or tax advice if you are unsure.