MARGIN FOREIGN EXCHANGE RISK DISCLOSURE STATEMENT

The risk of loss in trading margin foreign exchange can be substantial. You should therefore carefully consider whether this kind of trading is appropriate for you in the light of your financial circumstances. In deciding whether or not you will trade margin foreign exchange, you should be aware of the following:

(a) You could sustain a total loss of more than the initial margin funds that you deposit with EFX Financial Limited (EFX) to establish or maintain a foreign exchange position.
(b) If the foreign currency market moves against your position, you may be required, at short notice, to deposit with EFX additional funds in order to maintain your position. These additional funds may be substantial. If you fail to provide these additional funds within the required time, which may be the same day, your position may be liquidated at a loss and in this event you will be liable for any shortfall in your account. Initial margins will be increased at times of unusual market volatility and at such times margin call must be met same day. If you propose to trade in foreign currency options, the maximum potential loss in buying an option is the amount of the premium, but the risks in selling an option are the same as they are in respect of other currency trading.
(c) Under certain conditions, it could become difficult or impossible for you to liquidate a position (this can, for example, happen when there is a significant change in prices over a short period).
(d) The placing of contingent orders (such as a "stop-loss" order) will be on a "non-held" basis and may not always limit your losses to the amounts that you may want. Market conditions may make it impossible to execute such orders.
(e) A cross-currency position is not necessarily less risky than a simple "long" or "short" position in a foreign currency.
(f) The high degree of leverage obtainable in margin foreign exchange trading can lead to large losses as well as large gains except in the case of bought options where potential loss is limited to the total premium paid.
(g) If so agreed, you will be under a contractual obligation to deliver to EFX the full amount of the currency under a position
(h) After the value date of each position, interest will be debited and/or credited daily to your account, representing the holding costs associated with your position.
(i) Erosion of your initial margin by an amount decided by EFX, uncovered by excess funds, allows EFX to liquidate any or all of your positions without further reference to you.
This statement does not disclose all of the risks and other significant aspects involved in trading on a foreign currency market. You should therefore study foreign currency trading carefully before trading.