Risk Disclosure Statement

A risk disclosure statement is the document a regulated broker must give clients before they start trading, setting out the main risks of leveraged forex and CFD trading: how quickly losses can accumulate, the amplifying effect of leverage, price gaps, and the possibility of losing the entire deposit. Many jurisdictions also require a standardised risk warning on the broker's website and marketing material. The statement forms part of the client agreement, alongside the terms of business, order execution policy and fee schedule. It is a disclosure rather than a protection: acknowledging it does not limit a trader's losses. Reading it carefully is still one of the clearest ways to see how a broker describes execution, costs and the risks clients are expected to carry.