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Solid Foundation in Back TestingLive Account Performances | Risk Disclosure

Risk Disclosure

Both our Hypothetical and Real Live Account Results  are available. We encourage you to read these Terms & Conditions Risk Disclosure.

 

Terms & Conditions Risk Disclosure

HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY MULTI-SYSTEM ACCOUNT WILL OR IS LIKELY TO ACHIEVE A COMPOSITE PERFORMANCE RECORD SIMILAR TO THAT SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN A HYPOTHETICAL COMPOSITE PERFORMANCE RECORD AND THE ACTUAL RECORD SUBSEQUENTLY ACHIEVED.

ONE OF THE LIMITATIONS OF A HYPOTHETICAL COMPOSITE PERFORMANCE RECORD IS THAT DECISIONS RELATING TO THE SELECTION OF TRADING SYSTEMS AND THE ALLOCATION OF ASSETS AMONG THOSE TRADING SYSTEMS WERE MADE WITH THE BENEFIT OF HINDSIGHT BASED UPON THE HISTORICAL RATES OF RETURN OF THE SELECTED TRADING ADVISORS TRADING SYSTEMS. THEREFORE, COMPOSITE PERFORMANCE RECORDS INVARIABLY SHOW POSITIVE RATES OF RETURN. ANOTHER INHERENT LIMITATION ON THESE RESULTS IS THAT THE ALLOCATION DECISIONS REFLECTED IN THE PERFORMANCE RECORD WERE NOT MADE UNDER ACTUAL MARKET CONDITIONS AND, THEREFORE, CANNOT COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FURTHERMORE, THE COMPOSITE PERFORMANCE RECORD MAY BE DISTORTED BECAUSE THE ALLOCATION OF ASSETS CHANGES FROM TIME TO TIME AND THESE ADJUSTMENTS ARE NOT REFLECTED IN THE COMPOSITE.


THE RISK OF TRADING FOREIGN EXCHANGE ("FOREX") IS SUBSTANTIAL.THE HIGH DEGREE OF LEVERAGE ASSOCIATED WITH FOREX CAN WORK AGAINST YOU AS WELL AS FOR YOU. THIS HIGH DEGREE OF LEVERAGE CAN RESULT IN SUBSTANTIAL LOSSES, AS WELL AS GAINS. YOU SHOULD CAREFULLY CONSIDER WHETHER FOREX IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. IF YOU ARE UNSURE YOU SHOULD SEEK PROFESSIONAL ADVICE. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE SUCCESS. THE FULL RISK OF FOREX TRADING CANNOT BE ADDRESSED IN THIS RISK DISCLOSURE STATEMENT. YOU SHOULD STUDY THE DOCUMENTATION PROVIDED TO YOU WHEN OPENING AN ACCOUNT. NO DECISION TO INVEST SHOULD BE TAKEN WITHOUT THOROUGHLY READING THE DISCLOSURE DOCUMENTATION.


There is significant risk of loss in trading foreign exchange spot currencies. In considering whether to open an account, you should be aware of the following:

  • You may sustain a loss of the initial funds and any additional funds that you deposit to establish or maintain a position in the spot currency market. However, you cannot lose more than the amount deposited in your managed account.


  • If Galleon's trading robot places contingent orders, such as a "stop-loss" or "stop-limit" order, they will not necessarily limit your losses to the intended amount, since market conditions may make it difficult to execute such orders at the exact stop price.


  • The high degree of leverage that is often obtainable in spot trading because of the small margin requirements can work against you as well as for you. The use of leverage can lead to large losses as well as large gains.


  • A Forex account is not a deposit in a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

This brief statement of risk cannot cover all risks involved in the purchase or sale of spot foreign currencies. Because of the unpredictable nature of the prices of currencies, the purchase or sale of currencies involves a high degree of risk that is not suitable for all members of the public. You should only enter into a Managed Account Agreement for the purchase and sale of currencies if you are fully aware of the potential for loss and understand the nature and extent of your rights and obligations. As in any area of investing, the chances for success in currencies are influenced not only by the risks involved in such trading, but also by how well the risks are understood. Individuals considering opening a managed currency account for buying or selling currencies are urged to obtain additional information and to ask specific questions (and obtain specific answers) concerning the risks as well as the opportunities in currency trading and to take professional advice.

I HAVE READ AND UNDERSTAND THE RISK DISCLOSURE STATEMENT ABOVE and wish to proceed to the Performance Data

 
© 2008 GalleonFX