Before deciding to participate in the FX market, you should carefully consider your investment objectives, level of experience, risk appetite and ability to tolerate investment losses. Most importantly, do not invest money you cannot afford to completely lose. The risk of loss when trading in the FX market can be and often is very substantial. These losses may be due to any number of both foreseeable and unforeseeable factors.
There is considerable exposure to risk in any foreign exchange transaction. Transactions involving currencies involve risks including, but not limited to, changing political and/or economic conditions that may substantially affect the volatility, tradability, accessibility, availability, price or liquidity of a currency.
Moreover, the leveraged nature of FX trading means that any market movement will have a disproportional and amplified effect on your deposited funds. This may work against you (as well as for you). Be aware that the possibility exists that you could lose all the funds you deposit for margin. Also, If you fail to meet any margin call within the time prescribed, your position(s) could be automatically liquidated and you may be held responsible for any resulting losses. Please consult your Tactical Asset Management representative for further information.
There are further risks associated with investing in managed FX programs that employ computer-driven, model-based algorithmic trading or automated execution including but not limited to the failure of hardware, software or internet connectivity. Other, further risks, costs, charges and fees also exist. Please use extreme care and caution when considering an investment in the FX market or in a Managed FX program.