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Risk Disclosure

Last Updated: January 2024

1. General Risk Warning

This Risk Disclosure Statement is provided by INATECH SRL to inform you of the risks associated with trading financial instruments through IronFx or any other trading platform. This document does not disclose all possible risks and other significant aspects of trading financial instruments.

Before you begin trading, you should:

• Fully understand the nature and risks of trading
• Carefully consider whether trading is suitable for you
• Only invest money you can afford to lose
• Seek independent financial advice if necessary

2. High Risk Investment

Trading financial instruments is a high-risk activity. The high degree of leverage that is often obtainable in trading can work both for and against you. The use of leverage can lead to large losses as well as gains.

3. Specific Risks

3.1 Market Risk

Market risk is the risk of losses due to changes in market prices. Factors affecting market prices include:

• Economic Data: Employment reports, GDP, inflation rates
• Political Events: Elections, policy changes, geopolitical tensions
• Natural Disasters: Earthquakes, hurricanes, pandemics
• Market Sentiment: Investor confidence and market psychology
• Supply and Demand: Changes in commodity supply or currency demand

3.2 Leverage Risk

Leverage allows you to control a large position with a relatively small amount of capital. While this can amplify profits, it also magnifies losses.

Important considerations about leverage:

• Higher leverage means higher risk
• You can lose more than your initial deposit
• Margin calls may require additional funds
• Positions may be automatically closed if margin requirements are not met

3.3 Volatility Risk

Financial markets can be extremely volatile, with prices changing rapidly in very short periods. High volatility can result in:

• Rapid and substantial losses
• Difficulty executing orders at desired prices
• Increased slippage
• Wider spreads

3.4 Liquidity Risk

Liquidity risk is the risk that you may not be able to close a position quickly at a reasonable price. This can occur when:

• Market conditions are volatile or illiquid
• Trading during off-market hours
• Trading exotic or less popular instruments
• Major news events cause market disruptions

3.5 Counterparty Risk

Counterparty risk is the risk that the broker or trading platform may fail to fulfill its obligations. This includes:

• Broker insolvency or bankruptcy
• Failure to execute orders properly
• Inability to withdraw funds
• Technical failures or system outages

3.6 Currency Risk

If you trade instruments denominated in a currency other than your base currency, you are exposed to currency risk. Exchange rate fluctuations can affect:

• The value of your positions
• Your profit or loss when converted to your base currency
• Margin requirements

3.7 Gapping Risk

Markets can "gap" - meaning prices jump from one level to another without trading at intermediate prices. This can occur:

• At market open after weekends or holidays
• Following major news announcements
• During periods of extreme volatility

Gaps can cause stop-loss orders to be executed at prices significantly different from the stop price.

3.8 Technology Risk

Trading platforms rely on technology, which can fail. Risks include:

• Internet connection failures
• Platform outages or malfunctions
• Delays in order execution
• Data feed errors
• Cybersecurity threats

4. Forex Trading Risks

Foreign exchange (Forex) trading carries specific risks:

• 24-Hour Market: Prices can change at any time, even when you're not monitoring
• High Leverage: Forex often offers very high leverage (up to 1:500)
• Political Risk: Government policies and political instability can cause rapid currency movements
• Interest Rate Risk: Central bank decisions can significantly impact currency values

5. CFD Trading Risks

Contracts for Difference (CFDs) are complex instruments with specific risks:

• No Ownership: You don't own the underlying asset
• Unlimited Loss Potential: Losses can exceed your initial investment
• Overnight Financing: Holding positions overnight incurs financing charges
• Corporate Actions: Dividends and stock splits can affect CFD positions

6. Commodity Trading Risks

Trading commodities (gold, oil, agricultural products) involves:

• Supply Disruptions: Weather, geopolitics, production issues
• Storage Costs: Physical commodities have storage and insurance costs
• Seasonal Factors: Agricultural commodities are affected by seasons
• Speculation: Commodity markets can be heavily influenced by speculators

7. Emotional and Psychological Risks

Trading can be emotionally challenging and may lead to:

• Overtrading: Making too many trades due to excitement or desperation
• Revenge Trading: Trying to recover losses with impulsive trades
• Fear and Greed: Emotional decisions that override rational analysis
• Stress and Anxiety: Constant monitoring can be mentally exhausting

8. Regulatory and Legal Risks

Trading is subject to regulatory oversight, which can change:

• New regulations may restrict trading activities
• Leverage limits may be imposed
• Tax treatment of trading profits may change
• Cross-border trading may face additional restrictions

9. Risk Management Strategies

While risks cannot be eliminated, they can be managed:

9.1 Use Stop-Loss Orders

Always use stop-loss orders to limit potential losses. However, note that stop-losses are not guaranteed and may be executed at worse prices during volatile markets.

9.2 Manage Leverage

Use lower leverage to reduce risk. Higher leverage increases both potential profits and losses.

9.3 Diversify

Don't put all your capital in one trade or one type of instrument. Diversification can help spread risk.

9.4 Only Risk What You Can Afford to Lose

Never trade with money you need for living expenses, retirement, or other essential purposes.

9.5 Educate Yourself

Continuously learn about markets, trading strategies, and risk management. Knowledge is your best defense against losses.

9.6 Start Small

Begin with small positions and gradually increase as you gain experience and confidence.

9.7 Keep Emotions in Check

Develop a trading plan and stick to it. Don't let fear or greed drive your decisions.

10. No Guarantee of Profit

There is no guarantee that you will make a profit from trading. Many traders lose money. Past performance is not indicative of future results. Any trading strategy or system that claims guaranteed profits should be viewed with extreme skepticism.

11. Suitability

Trading may not be suitable for everyone. You should carefully consider whether trading is appropriate for you based on:

• Your financial situation and ability to bear losses
• Your investment objectives and risk tolerance
• Your knowledge and experience with financial markets
• Your time availability to monitor positions

12. INATECH SRL's Role

INATECH SRL acts as an affiliate partner for IronFx. We:

• Provide information about IronFx trading services
• Facilitate the registration process
• Do NOT provide investment advice or recommendations
• Do NOT manage your trading account
• Are NOT responsible for your trading decisions or losses

All trading is conducted directly with IronFx, which is a separate entity. You should review IronFx's own risk disclosures and terms of service.

13. Acknowledgment

By using our website and services, you acknowledge that:

• You have read and understood this Risk Disclosure
• You understand the risks involved in trading
• You accept full responsibility for your trading decisions
• You will not hold INATECH SRL liable for any trading losses
• You have the financial capacity to bear potential losses

14. Contact Us

If you have questions about the risks of trading, please contact us or seek independent financial advice: