The following document highlights the risk involved with participating in trades on the GMA Pros market.
Risk Notification for Traders
The GMA Pros (GMA Pros) facilitates the trade of currency contracts and Contracts for Trading (CFD). GMA Pros clients engage in trading currency pairs from around the world. CFD contracts may include currency, physical assets and commodities, or shares.
All GMA Pros clients are notified of the risk factors involved in trading. GMA Pros provides this risk notification so that clients have a clear understanding of the liabilities that come with trading.
Currency and CFD trading is not a solution for financial issues. Every trade comes with the risk of losing the entire investment balance, so traders should be in a stable financial position before participating in trades. Do not invest your pension funds or any form of savings that are necessary to maintain your current lifestyle.
In the worst-case scenario, traders can experience significant, if not total, loss of funds. Always trade responsibly; GMA Pros is not responsible for failed investments.
Only engage in trading activity if you satisfy the following requirements:
- You have a firm understanding of trading
- You fully understand the risks and are ready to inherit the attached legal responsibilities
- You have the funds and resources to cover your losses
Trading currency contracts outside of the established market could result in higher risk potentials. Trading at CFD, FX, or Forex is not for everyone; only experienced traders should participate in the market with funds they can afford to lose.
Specific Risk Factors Involved in CFD Trading
CFD means contract for trading. These financial transfers occur between two parties, and settlements are dealt with in cash. In this type of trade, an asset is exchanged between a buyer and a seller who after a determined amount of time closes the contract. *
The asset may increase in value or decrease, and this will determine the success of the deal. The buyer incurs losses if the value depreciates. If the value increases, buyers will see a profit. Oppositely, sellers see a profit if the value decreases because buyers are responsible for covering the difference in value. *
As with every trade, there is a significant risk involved. While the risk could be worth the reward in some cases, always consider whether or not you can take it on.
Long Positions CFD Risk
Long positions in CFD are categorized by deals that are expected to increase and favor the buyer. If you purchase an asset at market price and the value skyrockets while the CFD is open, then the buyer can expect to see a profit.
However, the risk is quite high in these deals. There is no guarantee your initial investment will be returned or that the asset will appreciate in value.
If the value of the asset that you are purchasing were to devalue instead of rising, you would incur losses that may even exceed the initial investment. Your entire balance may be depleted, and you could end up owing on the account. Do not engage in these deals if you have little or no market experience.
Short Position CFD Risks
Short positions take place on the seller side. Anyone who sells short believes that the value of the asset will decrease. It’s essentially a stake against the expansion of worth. If the value decreases, the seller sees a profit.
Still, the risk is substantial when you sell short because market predictions are never guaranteed. Your asset could depreciate just as easily as it could appreciate. As in long positions, sellers in short positions face the danger of accumulating losses that surpass the initial investment.
Never let your initially invested margin meet your total budget for trading. Always have adequate funds in place just in case the CFD purchase or sale results in a loss.
Risks Attached to High Credit Leveraging
Credit leveraging is using credit to complete trade transactions. This is a borrowed asset, not an owned asset. * While the initial investment margin comes at a low cost to you, it’s paired with an extremely high risk.
When you leverage your credit to trade in currency contracts of CFD, you are still responsible for payment. Trading on credit is enticing because it allows buyers to put down a small deposit worth only a fraction of the full cost. When the asset appreciates, it will influence the trade positively, and a profit can be made after paying back the credit.
Profitability is not guaranteed. If an asset depreciates, you will owe even more on credit. When the loss exceeds the deposit you put down, your entire account balance will be reduced to zero immediately.
Keep in mind that if you are borrowing an excessive amount, your overall profit will be minimized due to debt settlement. *
Do not borrow beyond your means. Even though credit leveraging is appealing in some circumstances, it is not a free ticket to trade. Leveraging in credit will impact your overall credit score. It could also result in interest fees or accumulated losses beyond the borrowed credit limit.
Marginal Security Requirements and Attached Risks
You are responsible for your account balance. The account balance must never be below the minimum requirement for open positions. A trade will automatically close if the account balance falls below this minimum requirement.
Account-holders may receive a notification if their balance falls close to the minimum requirement. This notice may or may not be accompanied by a request for additional deposits to be made towards the account. These requests are meant to ensure you deposit and protect your trade from a forced closing.
If your account falls below the minimum required total, GMA Pros has the legal right to close your account permanently. GMA Pros Clients are always liable for covering the losses accumulated on closed accounts.
Spreads and Risks
A spread involves the buying and selling of various units. When spreads are displayed, they represent the difference between the price that the seller proposes and the one the buyer will agree to.
Spreads that take place on the CRP market are nearly instantaneous. You can find more information about spreads in the terms and agreements of individual contracts.
While GMA Pros offers low spreads on their market, each trade will differ.
Settlements and Off-sets
Anyone participating in trading is responsible for payment, settlements of credit, CFD, and currency contracts. You are legally obligated to cover the difference on your account should you accumulate any losses.
Risks Associated with Conflicts of Interest
Sometimes, special interests conflict and coincide. You are still responsible for the integrity of the account balance.
Transactions that Occur Off-Exchange or with Brokerage Companies
Brokerage companies act as the middle man for transactions and trades that occur off-exchange. A deal is considered to be off-exchange when it does not exist solely on the GMA Pros market. Clients have the option to involve brokerage companies in CFD and currency contract trading.
Involving brokerage companies in contracts does not grant them the power to close open deals. The GMA Pros is the only party that has control over the opening and closing of contracts. Unlike the GMA Pros market, private companies are not required to display bid proposals or negotiations.
Outside brokers may aid the client with experience and expertise, but they do not have power over the contract.
GMA Pros uses market research to indicate prices, margins, and performance predictions. Broker proposals may differ from the listed information provided by the GMA Pros. GMA Pros establishes the prices and margins, so assets in trading with brokerage companies are at risk of being affected by market fluctuations.
Prices are determined by asset value and market history. GMA Pros uses data from the top markets to set prices, but they may vary from other markets. When trading with a brokerage company, the client maintains certain controls over the account and negotiated assets.
The Risk to Assets
You must read and understand the terms and agreements of each trade contract. Each contract may have underlying assets in the form of currency, stocks, assets, etc. These are all at risk during trades.
The Risk to Currency
Currency contracts and CFD dealing in currency are subject to market fluctuations. Currency values rise and fall, and this will impact your deal.
The Risk of Trading Online
Trades may occur on the GMA Pros digital platform. These deals take place nearly instantly. GMA Pros is not responsible for slow bandwidth, network disconnectivity, or malfunctioning devices. If any of these issues cause an error to the account, you are solely liable.
GMA Pros recommends avoiding computers that have software issues when trading. If your device has poor history conducting transactions or other functions, do not use it to trade on any market.
The Risks of Trading With One-Press
The GMA Pros market operates online with a one-press option. As soon as you make a deposit or click the “buy/sell” button, your instructions are solidified, and you cannot retract the request. It may take time for these requests to fully process, but they are usually completed instantly.
Trading online will differ from market to market. GMA Pross user experience may differ from other market platforms. Familiarize yourself with the setup by watching tutorials. Demo trades are also available to simulate the experience for beginners. Take advantage of these practice measures to ensure best practices and avoid mistakes.
GMA Pros is not responsible for user errors. When you trade online, you agree to the GMA Pros’s terms of trade.
The Risks of Trading by Telephone or Voice Command
Trading by phone is another service offered by the GMA Pros market. Clients can deliver trading instructions to a trained operator in order to participate in the market trade. Your commands are finalized as soon as the operator informs you so.
GMA Pros is never liable for broken telephone equipment or misunderstanding of instructions. Operators are trained to confirm the requests before finalizing transactions; this is your chance to correct any mistakes in communication.
You make the decisions of the trade, and you are liable for it. Operators will never assist in advising you in any way.
Trading over the phone does not eliminate risk. All the associated risks still apply to phone transactions.
If you have poor speakers on your phone or a speech quality that may affect the clarity of your instructions, refrain from using telephone services to complete your deal. This will help avoid mistakes and disputes.
The Risk of using GMA Pros as a Trade Advisor
GMA Pros performs evaluations on clients and businesses. These evaluations could help the GMA Pros provide educated trade recommendations if requested. Recommendations are based on reliable research and delivered with integrity.
However, these recommendations are never guaranteed. While a recommendation may be of assistance, it does not reduce the risk associated with market trading.
No Profit Guarantee
You are never promised profits on any trade. You must undertake the losses that occur on the account and accept the risk involved with each trade. GMA Pros is not responsible for losses.
In some cases, you will have the opportunity to close open deals early. In other cases, you will not.
The Risk of Errors in Trade Quotes
There is always a chance of errors arising in contracts, requests, and accounts. The account holder is responsible for monitoring the details and overseeing the trade details. It is the client’s responsibility to identify and notify the GMA Pros team of any mistakes.
Disputes and claims stemming from contract errors will be settled according to the GMA Pros protocol.
GMA Pros is not responsible for profits or losses. The client is trusted to trade responsibly and with integrity. The client is the only party held responsible for account balance and due payments.
Agreement of Terms and Condition
If you are planning to trade on the GMA Pros market, then you agree to the terms and conditions of the trade, as well as the risk notification outlined in this document.
Whether you trade online, via telephone, or in person, you are liable for the outcome of the deal. Engaging in any GMA Pros trades or contracts qualifies as an agreement to the undertaking of risk. In all GMA Pros trades, you are required to follow GMA Pros community guidelines and regulations.
Any breach of this agreement is subject to legal action.