Torquefixcapital

70-80%

of retail investor accounts lose money when trading CFDs

1:500

Maximum leverage amplifies both gains AND losses

24/7

Markets can move against you at any time

1. General Investment Risks

Before engaging in trading, you should be aware of the following general risks:

Loss of Capital: Trading involves the risk of losing some or all of your invested capital. Never invest money you cannot afford to lose.
No Guaranteed Returns: Past performance is not indicative of future results. There are no guaranteed profits in trading.
Volatility: Financial markets can experience sudden and extreme price movements that may result in significant losses.
Complexity: Trading financial instruments requires knowledge, experience, and careful consideration of market conditions.

2. Leverage Risk

Leverage allows you to control larger positions with a smaller amount of capital. However, it significantly amplifies both potential profits AND potential losses.

Example of Leverage Risk

With 1:100 leverage and a $1,000 account:

You can control a $100,000 position
A 1% market move = $1,000 (100% of your account)
A 1% adverse move could wipe out your entire account

High leverage can lead to rapid and substantial losses
You may lose more than your initial deposit
Margin calls may force the closure of your positions at a loss
You are responsible for monitoring your margin requirements

3. Market Risk

Market risk refers to the potential for losses due to factors that affect the overall performance of financial markets:

Price Volatility: Prices can fluctuate rapidly and unpredictably
Gap Risk: Prices may gap through your stop-loss orders, resulting in larger losses than anticipated
Weekend/Holiday Risk: Markets can open at significantly different prices after closures
Economic Events: Major announcements can cause extreme market movements
Geopolitical Events: Political instability, conflicts, and policy changes affect markets
Flash Crashes: Sudden, severe market drops can occur without warning

4. Liquidity Risk

Liquidity risk occurs when market conditions make it difficult to execute trades at desired prices:

During periods of low liquidity, spreads may widen significantly
You may not be able to close positions at your preferred price
Slippage may occur, especially during volatile market conditions
Some instruments may become temporarily untradeable
Large orders may receive partial fills at different prices

5. Forex-Specific Risks

Foreign exchange trading carries specific risks including:

Currency Risk: Exchange rates can change rapidly due to economic, political, and market factors
Interest Rate Risk: Changes in interest rates affect currency values and swap costs
Country Risk: Political and economic instability in a country can affect its currency
Rollover Costs: Holding positions overnight incurs swap charges that can accumulate
Central Bank Intervention: Central banks may intervene in currency markets without warning

6. CFD-Specific Risks

Contracts for Difference (CFDs) have unique risks you should understand:

No Ownership: CFDs do not confer ownership of the underlying asset
Counterparty Risk: Your trades are with the broker, not on an exchange
Overnight Financing: Holding CFD positions overnight incurs financing charges
Corporate Actions: Dividends, stock splits, and other actions affect CFD positions
Expiration: Some CFDs have expiration dates requiring position management

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

7. Technical & Operational Risks

Technology-related risks that may affect your trading:

System Failures: Hardware, software, or network failures may prevent trade execution
Internet Connectivity: Loss of internet connection may prevent you from managing positions
Platform Errors: Software bugs or errors may affect pricing or order execution
Cyber Security: Hackers or malware could compromise your account security
Data Feed Issues: Delayed or incorrect price feeds may lead to poor trading decisions

We recommend using stop-loss orders and maintaining alternative means of contacting us in case of technical issues.

8. Regulatory & Legal Risks

Regulatory changes may affect your trading activities:

New regulations may restrict trading in certain instruments or markets
Leverage limits may be reduced by regulatory authorities
Tax laws and reporting requirements may change
Trading certain products may become prohibited in your jurisdiction
You are responsible for complying with laws in your country of residence

9. Suitability Assessment

Before trading, honestly assess whether this is suitable for you:

Trading MAY be suitable if:

You have experience with financial markets
You can afford to lose your investment
You understand leverage and margin
You have time to monitor your positions
You can manage emotional decision-making

Trading may NOT be suitable if:

You cannot afford to lose the money invested
You have limited investment experience
You are seeking guaranteed returns
You cannot monitor your positions regularly
You tend to make impulsive decisions

Important Notice

Trading leveraged products carries a high degree of risk to your capital and it is possible to lose more than your initial investment. These products may not be suitable for all investors. Please ensure you fully understand the risks involved, seeking independent advice if necessary, and only speculate with money you can afford to lose.

By opening an account, you acknowledge that:

You have read and understood this Risk Disclosure
You accept the risks associated with trading
You are trading with money you can afford to lose
You will seek professional advice if uncertain

Risk Disclosure

High Risk Investment Warning

Risk Categories