Foreign exchange transactions carry a high degree of risk and any transaction involving currencies is exposed to, among other things, changes in a country's political condition, economic climate, acts of nature - all of which may substantially affect the price or availability of a given currency.
Speculative trading in the foreign exchange market is a challenging prospect with above average risk. You must therefore carefully consider your investment objectives, level of experience and appetite for such risk prior to entering this market. Most importantly, do not invest money that you are not in a position to lose. It is advisable to never invest borrowed funds.
In addition, trading on a margin basis means that any market movement will have a proportionate effect on your deposited funds. This can work for you as well as against you. The possibility exists that you could sustain a total loss of initial margin funds. OANDA's trading system is designed to automatically liquidate all open positions if your margin deposit is in jeopardy so that you cannot lose more than the funds you have on deposit in your account. It is encouraged that you to employ such risk-reducing strategies as 'Stop Loss', 'Stop Order', or 'Trailing Stop', but you should be aware that market conditions may make it impossible to close out your order at the level specified.
There are also risks associated with utilizing an Internet-based trade execution software application including, but not limited to, the failure of hardware and software. OANDA maintains back up systems and contingency plans to minimize the possibility of system failure.
Customers’ accounts are protected by the Canadian Investor Protection Fund (“CIPF”) for up to $1,000,000 within specified limits. A brochure describing the nature and limits of coverage is available from OANDA upon request or you may view it on-line: https://www.oanda.com/register/docs/ocan/CIPF_Oanda_E_2017-01-01.pdf
Please be sure to read our complete Risk Disclosure Statement and contact us if you have any questions or concerns.