Risk Disclaimer
General Risk Warning
Prospective clients must read and understand the following risk warnings carefully. FortressFX Ltd does not explain every risk involved in trading financial instruments, including Contracts for Difference (CFDs), forex, commodities, and other leveraged products. This notice provides a general overview of the risks based on a fair and non-misleading approach.
CFDs are complex instruments and carry a high risk of losing money rapidly due to leverage. These products are not suitable for all investors. By trading CFDs, you accept the risk of losing your entire capital and potentially more. You should never invest money you cannot afford to lose. FortressFX Ltd does not offer investment advice or make recommendations. It is your responsibility to assess whether trading is suitable for your financial situation and experience.
If you do not fully understand the risks involved, you should seek independent financial advice. If you are still uncertain, do not engage in trading.
Technical Risks
You are responsible for any losses caused by failure of internet, electronic devices, software, or trading platforms. FortressFX Ltd is not liable for execution delays or failures due to system errors.
Abnormal Market Conditions
Under fast-moving or illiquid markets, execution times may be delayed and slippage may occur.
Trading Platform Limitations
Only one order or instruction can be processed at a time. Multiple submissions may be blocked, delayed, or rejected.
Communication Delays
FortressFX Ltd is not liable for any losses arising from delayed or undelivered communications including emails, platform notifications, or support messages.
Force Majeure
Events beyond our control (natural disasters, market disruption, etc.) may lead to significant risk exposure and loss.
Foreign Exchange and Derivatives
Forex and derivatives are highly leveraged and can result in large losses. These products are not appropriate for all investors. Complex strategies (such as spreads or straddles) may carry as much risk as outright positions.
Leverage Impact
Margin trading increases your risk. Even small price changes can significantly impact your account balance. You may lose more than your initial deposit.
Volatile Instruments
Many instruments, such as commodities or indices, experience large intraday movements. These may be influenced by external factors such as political events, supply disruptions, or global sentiment.
Liquidity Risk
Certain assets may become illiquid due to low market demand. In such cases, pricing may be unreliable or unavailable, resulting in potential losses.
Futures Trading
Futures contracts involve the obligation to buy or sell an asset at a future date. Due to leverage, even small price shifts can result in significant profit or loss.
Contracts for Differences (CFDs)
CFDs are speculative and involve high risk. Market shifts can cause total loss of your deposit and expose you to additional costs. These instruments are not suitable for investors without sufficient experience and risk tolerance.
Equities
Share prices can fluctuate significantly. Smaller company stocks carry increased risk due to reduced liquidity and wider price spreads.
Off-Exchange Derivatives
CFDs, forex, and metals are traded off-exchange. Liquidity may be limited and pricing may vary. It can be difficult to close positions or assess fair value.
Foreign Markets
Foreign trading may be subject to different rules and protections. Currency fluctuations may also affect profits and losses.
Contingent Liability Transactions
Margin-based products require ongoing capital and carry additional exposure risk. You may be required to add funds to maintain open positions.
Collateral Risk
Assets used as collateral may be exposed to third-party risk or market loss. You may not receive the original assets upon settlement.
Commissions and Taxes
Ensure you understand all fees and potential tax liabilities before trading. Charges not stated in fixed currency should be clearly calculated before placing trades.
Trading Suspensions
Market volatility or limit moves may result in trading halts. Orders such as stop-loss may not execute at intended levels, increasing your risk.
Clearing House Protections
Clearing houses may not provide protection for retail clients. Off-exchange instruments typically carry greater counterparty risk.
Insolvency Risk
In the event FortressFX Ltd or a third-party provider becomes insolvent, your assets may be at risk. You may not recover the original funds or securities deposited.
Third-Party Risk
Funds or assets placed with external providers (e.g., banks, liquidity providers) are subject to their own risk and policies. FortressFX Ltd is not liable for losses due to their failure or misconduct.
Restricted Jurisdictions
Forex trading is restricted in certain jurisdictions, including the United States, North Korea, India, and the United Arab Emirates. It is your responsibility to ensure that trading is permitted in your country before opening an account. FortressFX Ltd strongly recommends that you obtain independent legal, financial, and tax advice before engaging in any trading activities.
If you have any questions about the risks involved in trading, please contact our support team or consult a qualified financial advisor.