Risk Warning

High Risk Investment

Margined Currency Trading carries higher degree of risk in comparison to other equity investment available in the financial markets. It is more appropriate for trained individuals and professionally managed institutions. An account with ESA Trader allows you to trade foreign currencies on a highly leveraged basis (up to approximately 50 times your account equity) with its principals. In a standard account, an initial deposit of USD$1,000 will enable the account holder to take a maximum position of USD$100,000 market value. ESA Trader is not/will not/shall not withhold any forms of monies or deposits on behalf of its client. Clients are advised to be responsible towards the safeguarding his/her trading account. ESA Trader will never appoint any third parties to collect any forms of deposits/funds/proceeds.

The deposits/funds in the individual’s trading account at maximum leverage can be completely lost if the position(s) held in the account has a 1% swing in value. Theoretically, a trading account could lose more than the equity it contains, if it is trading at maximum leverage and positions held in the account swing more than 1% in value. Given the possibility of losing one’s entire investment, speculation in the off-exchange retail foreign currency market should only be conducted with risk capital funds that if lost will not significantly affect one’s personal or institution’s financial well beings. Thus, it is strongly advised for one or institution to seek professional help either on their own accord, from any independent financial advisors or from ESA Trader’s Knowledge Capital Centre.

Market Opinions – ESA Trader

Any opinions expressed by representatives or any forms of mass media of ESA Trader as to the future direction of prices of specific currencies are purely opinions, do not necessarily represent the opinion of ESA Trader, and are not guaranteed in any way. In no event shall ESA Trader have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided verbally or via the Internet, or any delays, inaccuracies, errors in, or omissions of information.

Internet Trading Risks

In addition, there are risks associated with utilizing an Internet-based deal execution trading system (best efforts nature) including, but not limited to, the failure of hardware, software, and Internet connection. Since ESA Trader does not control signal power, its reception or routing via Internet, configuration of your equipment or reliability of its connection, we cannot be responsible for communication failures, distortions or delays when trading via the Internet. ESA Trader implements back up systems, manual monitoring and contingency plans to minimize the possibility of system failure.

Leverage Disclaimer

The leveraged nature of foreign exchange (FOREX) trading means that any market movement will have an equally proportional effect and impact on your deposited funds/proceeds. This may work against you as well as for you. The possibility exists that 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. Thus, before deciding to trade in the foreign exchange markets you should carefully consider your investment objectives, your level of experience, and your risk appetite.

Should you have any enquiries and doubts pertaining the above risk warnings, please do not hesitate to contact us.