Currency trading is speculative and volatile.  You can lose your entire investment. 

Carefully consider your investment objectives. Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available to investors who are willing to take above average risk. However, before deciding to participate in Foreign Exchange (FX) trading, you should carefully consider your investment objectives, level of experience, and risk tolerance.

Most importantly, do not invest money you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from your independent financial advisor if you have any doubts. At that point, if you are uncomfortable with the risks in trading in a highly leveraged market, you should not open an account.

Currency prices are highly volatile. Price movements for currencies are influenced by, among other things: changing supply-demand relationships; trade, fiscal, monetary, exchange control programs and policies of governments; United States and foreign political and economic events and policies; changes in national and international interest rates and inflation; currency devaluation; and sentiment of the market place. None of these factors can be controlled by any individual or group.

The low margin deposits required in currency trading (typically between 1%-10% of the value of the contract purchased or sold) permits an extremely high degree leverage. Accordingly, a relatively small price movement in a contract may result in immediate and substantial losses to the investor. Like other leveraged investments, in certain markets, any trade may result in losses in excess of the amount invested.

The higher the leverage, the more likely you are to lose your entire investment if exchange rates go down when you expect them to go up (or go up when you expect them to go down). Leverage of 100:1 means that you will lose your initial investment when the currency loses (or gains) 1% of its value, and you will lose more than your initial investment if the currency loses (or gains) more than 1% of its value. If you want to keep the position open, you may have to deposit additional funds to maintain a 1% security deposit.

Trading on an electronic trading system may differ not only from trading in an open-outcry market but also from trading on other electronic trading systems. If you undertake transactions on an electronic trading system, you will be exposed to risks associated with the system including the failure of hardware and software.

The result of any system failure may be that your order is either not executed according to your instructions or is not executed at all.

Advanced Markets attempts to minimize the possibility of system failure, and phone trading is always available.

Since Advanced Markets Inc. does not control signal power, its reception or routing via Internet, configuration of Trader’s equipment or reliability of its connection, Advanced Markets Inc. shall not be responsible for communication failures, distortions, or delays when trading on-line (via Internet).

This brief statement cannot disclose all the risks and other significant aspects of the foreign exchange markets. You should therefore carefully study all documents and foreign exchange trading before you trade, including the description of the principle risk factors of the investment.

Trading in futures, forex, and options is not suitable for many members of the public. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances. Trade at your own risk.

You can find additional information about the nature and risks of forex trading at the following websites,

National Futures Association: http://www.nfa.futures.org

The National Futures Association (NFA) is the industry-wide, self-regulatory organization for the U.S. futures industry. They develop rules, programs and services that safeguard market integrity, protect investors and help Member Companies meet their regulatory responsibilities.  We recommend that you download the National Futures Association brochure on forex trading at:
http://www.nfa.futures.org/investor/forex/forex.pdf

Background Affiliation Status Information Center (BASIC). BASIC contains Commodity Futures Trading Commission (CFTC) registration and NFA membership information and futures-related regulatory and non-regulatory actions contributed by NFA, the CFTC and the U.S. futures exchanges
http://www.nfa.futures.org/basicnet/