Legal
Risk Disclosure
Last updated: January 1, 2025
1. General Risk Warning
Trading CFDs (Contracts for Difference) carries a high level of risk and may not be suitable for all investors. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment.
2. Leverage Risk
CFDs are leveraged products, meaning you can control a large position with a relatively small deposit. While leverage can amplify your profits, it can equally amplify your losses. Losses can exceed your initial deposit. Arqam Broker applies Negative Balance Protection to all retail accounts.
3. Market Volatility
Financial markets can be highly volatile. Prices can move rapidly in response to news events, economic data releases, geopolitical events, and other factors. This volatility can result in significant gains or losses in a short period of time.
4. Forex Risk
Foreign exchange markets operate 24 hours a day and are subject to constant price fluctuation. Exchange rates between currencies can change rapidly due to economic conditions, political events, and market sentiment.
5. Crypto CFD Risk
Cryptocurrency markets are highly speculative and extremely volatile. Crypto CFDs carry additional risks including regulatory uncertainty, technological risks, and potential for extreme price swings. Leverage on Crypto CFDs is capped at 1:20.
6. Overnight Financing
Positions held overnight are subject to swap/rollover charges. These charges are applied at market close and can accumulate significantly for long-duration positions. Islamic (swap-free) accounts are available upon request.
7. Counterparty Risk
When trading CFDs, you are trading against Arqam Broker as the counterparty. Client funds are held in segregated accounts at tier-1 banks to protect against counterparty risk.
8. Technology Risk
Electronic trading involves technology risks including internet connectivity issues, platform outages, and order execution delays. We maintain redundant infrastructure but cannot guarantee uninterrupted service.