This brief statement does not disclose all of the risks and other significant aspects of trading in foreign exchange ("forex" or "FX"). In light of the risks, you should undertake such transactions only if you understand the nature of the contracts (and contractual relationships) into which you are entering and the extent of your exposure to risk. Trading in foreign exchange is not suitable for many members of the public therefore you should not invest money that you cannot afford to lose.
What you should know before you start trading forex
You will not be charged a commission per trade. However, you will be charged a spread between the buy and sell quotes, which will impact your profits.
There is considerable exposure to risk in any foreign exchange transaction. Any transaction involving currencies involves risks including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price or liquidity of a currency.
Margin / Leverage
Trading foreign exchange on margin carries a high level of risk. It is possible that you could sustain a loss of some or all of your investment. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances.
The leveraged nature of forex trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. You could sustain a total loss of initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin call within the time prescribed, your position will be liquidated and you will be responsible for any resulting losses. Investors may lower their exposure to risk by employing risk-reducing strategies such as stop-loss or limit orders.
On-line trading
There are risks associated with using an Internet-based trading system. These include the failure of hardware, software and Internet connection. Questrade does not control signal power, reception or routing on the Internet, configuration of your equipment or reliability of its connection. We cannot, therefore, be responsible for communication failures, distortions or delays when trading via the Internet. Questrade Inc. employs back-up systems and contingency plans to minimize the possibility of system failure.
Market commentary
All opinions, news, research, analysis, prices or other information contained on the Questrade website are provided as general market commentary and do not constitute investment advice. Questrade Inc. will not accept liability for any loss or damage, including, but without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
The Questrade website
The content on the Questrade website is subject to change at any time without notice and is provided for the sole purpose of assisting traders in making independent trading decisions. We have taken reasonable measures to ensure the accuracy of the information on the site, however, Questrade Inc. does not guarantee its accuracy and will not accept liability for any loss or damage which may arise directly or indirectly from the content or your inability to access the site, for any delay in or failure of the transmission or the receipt of any instruction or notification sent through this site.
