RISK WARNING :
Customers should be aware of the risks associated with over-the-counter, spot Forex trading. In the off-exchange market, also called the over-the-counter market, a retail customer trades directly with a counterparty and there is no exchange or central clearing house to support the transaction. Forex trading can be highly speculative in nature, which can mean prices may become extremely volatile. Forex trading can be highly leveraged. Since low margin deposits normally are required, an extremely high degree of leverage is obtainable in over-the-counter trading. A relatively small market movement will have a proportionately larger impact on the funds you have deposited. You may sustain a total loss of your funds. Since the possibility of losing your entire cash balance does exist, speculation in the over-the-counter market should only be conducted with risk capital you can afford to lose and which will not dramatically impact your lifestyle.
Leverage risk
Forex trading can be highly leveraged. Since low margin deposits normally are required, an extremely high degree of leverage is obtainable in over-the-counter trading. A relatively small market movement will have a proportionately larger impact on the funds you have deposited. You may sustain a total loss of your funds. Excessive leverage increase this risk.