Legal
This Risk Disclosure Statement is provided to ensure you fully understand the nature and risks associated with trading forex, CFDs, and related financial instruments. You should not trade unless you fully understand these risks and can afford to sustain potential losses.
Last updated: 1 January 2025
Trading foreign exchange (“forex”), contracts for differences (“CFDs”), commodities, indices, and other over-the-counter (“OTC”) financial derivatives involves substantial risk of loss and is not suitable for all investors. The high degree of leverage available in forex and CFD trading can work both in your favour and against you. Before deciding to trade, you should carefully consider your investment objectives, level of financial experience, and risk tolerance.
You may sustain a total loss of your initial investment and may be required to deposit additional funds to maintain open positions. You should never trade with money you cannot afford to lose, such as savings, retirement funds, or funds needed for essential living expenses.
Leveraged trading means you can control a large position with a relatively small amount of capital. While leverage amplifies potential profits, it equally amplifies potential losses. A small adverse price movement in the underlying instrument can result in a loss that is significantly larger than your initial deposit.
Africa Legacy FX offers dynamic leverage that may vary by instrument, account type, position size, and current market conditions. Leverage ratios are subject to change at any time without prior notice, particularly during periods of high volatility, major economic announcements, or regulatory requirement changes. You are responsible for understanding the leverage applicable to each instrument you trade and for maintaining sufficient margin in your account at all times.
Margin is the amount of funds required to open and maintain a leveraged position. If your account equity falls below the required margin level, you will receive a margin call requiring you to deposit additional funds or close positions. If you fail to respond to a margin call or your account equity falls to the stop-out level, Africa Legacy FX reserves the right to automatically close one or more of your open positions at the prevailing market price without prior notice. You are fully responsible for ensuring your account has sufficient margin at all times. In fast-moving or gapping markets, your losses may exceed your deposited margin, and you may be required to pay the resulting deficit.
Forex and CFD prices are derived from underlying markets and are subject to rapid and unpredictable changes due to economic events, political developments, natural disasters, and market sentiment. Prices may gap — moving sharply from one level to another without trading at intermediate prices — particularly at market open, around major news events, or during periods of low liquidity. Stop-loss orders cannot guarantee execution at the specified price in gapping markets.
Order execution is subject to available liquidity and market conditions. During periods of high volatility or low liquidity, orders may be filled at a price different from the requested price (slippage). There may also be delays in order execution, which could adversely affect the outcome of trades.
When trading OTC financial instruments with Africa Legacy FX, you are entering into a contract directly with the Company as counterparty. Unlike exchange-traded instruments, OTC instruments are not cleared through a central counterparty and are not guaranteed by any exchange or clearing house. Your ability to recover funds in the event of the Company's insolvency depends on the Company's regulatory protections, client money rules, and any applicable investor compensation schemes in the relevant jurisdiction.
If your account is denominated in a currency different from the base currency of the instruments you trade, or from your home currency, you are exposed to additional currency risk. Exchange rate fluctuations between currencies can increase or decrease your profits or losses when converted back to your account currency.
Holding leveraged positions overnight may incur financing charges (“swap” or “rollover” fees), which can be positive or negative depending on the interest rate differential between the two currencies in a pair and the direction of your position. These charges accumulate daily and can significantly erode your account balance over time, particularly on long-held positions. Swap rates are variable and may change without notice.
Trading is conducted through electronic systems that are subject to technical failures, interruptions, and connectivity issues. While Africa Legacy FX takes reasonable steps to ensure platform availability and reliability, the Company cannot guarantee uninterrupted service. You should maintain access to alternative communication methods for urgent account management. Internet connectivity failures on your end or with your service provider are outside the Company's control and may prevent you from placing, modifying, or closing orders in a timely manner.
If you engage with copy trading services or follow market signals or recommendations, past performance of any signal provider, expert advisor, or strategy is not indicative of future performance. Markets are unpredictable and strategies that have been profitable historically may suffer significant losses in different market conditions. You remain fully responsible for the trades executed in your account regardless of their origin.
The regulatory environment for forex and OTC derivatives is subject to change. New laws, regulations, or regulatory guidance may restrict or alter the services Africa Legacy FX can provide, the instruments available for trading, leverage limits, or other terms of business. Such changes may have an adverse effect on your trading activities. It is your responsibility to ensure that your use of Africa Legacy FX's services complies with all applicable laws and regulations in your jurisdiction.
By opening an account with Africa Legacy FX, you acknowledge that you have read, understood, and accepted the risks described in this Risk Disclosure Statement. You confirm that you are financially capable of sustaining losses, that you are trading with funds you can afford to lose, and that you will seek independent financial advice if you are uncertain about any aspect of trading. Africa Legacy FX strongly recommends that you use risk management tools such as stop-loss orders, position sizing discipline, and portfolio diversification to manage your exposure.