Risk Disclaimer

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange 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 and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Margined Trading

Margined currency trading is an extremely risky form of investment and is only suitable for individuals and institutions capable of handling the potential losses it entails. An account with Capital Market Services LLC allows you to trade foreign currencies on a highly leveraged basis (up to about 400 times your account equity). The funds in an account that is being traded at maximum leverage may be completely lost if the position(s) held in the account experiences even a one percent swing in value. For example, if one chooses to leverage up to the maximum 400 times account equity, then a margin of $1,000 may control an investment of $400,000. While a 1% upward swing of the positions held in the account may multiply into a $4,000 profit, a 1% downward swing multiplies into a $4,000 loss, i.e. greater than the initial investment. Thus, an account could lose more than the equity it contains. Given the possibility of losing one's entire investment, speculation in the foreign exchange market should only be conducted with risk capital that, if lost, will not significantly affect the investor's financial well-being.

Internet Trading Risks

There are risks associated with utilizing an Internet-based deal execution trading system including, but not limited to, hardware malfunction, software failure, and Internet connection problems. Because Capital Market Services LLC does not control signal power, reception or routing via Internet, the configuration of your equipment or the reliability of its connection, we cannot be responsible for communication failures, distortions or delays you may experience while trading via the Internet. Capital Market Services LLC employs back-up systems and contingency plans to minimize the possibility of system failure.