Before
deciding to trade, the client must ensure that he understands the risks
associated with this type of trading and takes into account his level of
expertise and knowledge. If necessary, he should seek private advice.
Market
risks and investment risks in financial markets are revealed on the basis that
the client requested the trading of Forex and CFDs with Amana, which are
leveraged products, which include risks, and may cause significant losses.
Product Specification
CFDs
are agreements to buy or sell a contract that reflects the performance of many
products, including Forex, precious metals, future contracts and stocks, and
the price is determined according to the difference between the purchase price
of the contract for the difference and the price of its sale and vice versa.
Forex and CFDs are traded on a margin basis, and these products and contracts
are not actually delivered physically. It is mentioned that when clients buy
CFDs for shares, for example, they depend on the possibility of a high or low
value per stock.
The
value of foreign currencies and CFDs are fluctuate throughout the day, and the
price of their trends is determined by many factors that include, but are not
limited to speculation and the availability of market information.
The
main risks involved in trading and CFD transactions
Both
currency pairs and CFDs are complex products that are not suitable for all
investors, so you must make sure that you understand the way these products
work, and make sure that they are appropriate to the customer's requirements,
and the trader must make sure that he is prepared to bear the loss if it occurs.
You should read this statement
carefully before deciding to trade.
Before
trading currency pairs and CFDs, the client must ensure that he understands all
the risks. Trading and CFDs are products subject to the margin system, so they
carry a high degree of risk to invested capital compared to other products.
Margin trading means that profits and losses are inflated, and the lower the
margin level, the greater the risk of loss if the market reverses. The value of
foreign currencies and CFDs may decrease or increase depending on the condition
of the markets.
Due
to the fact that currency pairs and CFDs operate on margin bases, trading by it
may not be appropriate for all investors, as consideration should be given to
obtaining a special advice for it if necessary. The profit probability should
be offset along with obtaining prudent risk management, since trading in Forex
and CFDs can lead to large losses in a short period of time.
Currency
pairs and CFDs should only be traded after knowing all the associated risks.
The client should only think about this type of trading if he wants to
speculate, especially for a short period of time, or if he wants to hedge his
current portfolio, in the event that he has great experience in the field of
trading, especially in times of extreme.
Trading
and investing in leveraged products, such as currency pairs and CFDs, carry
significant risks to your capital, and as a result, you may incur significant
losses. Amana, however, guarantees that the losses will not exceed the total
funds available for each retail client’s trading account.
Trading
in CFDs, means that the customer is involved in unregulated contract
operations. This means that any open position with a trust cannot be closed
through any other company. These operations may include a higher risk of
trading in regulated financial markets, such as traditional financial markets.
This is based on the fact that the unregulated contracts do not include a
mediating party, and the parties to the transaction assume a certain credit
risk ratio.
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Leverage
Trading
and CFD trading allows the client to trade by paying a small amount of the
total amount required for the investment. On the other hand, it should be noted
that leverage means that a small change in the state of the market may lead to
a significant change in the value of the customer's position. Amana provides
mobile leverage starting with 1: 1.
Amana
controls the leverage of its clients at all times, and Amana maintains its full
right to reduce the level of the leverage according to the client's trading
volume.
Stop loss limits
Costs and Commissions
General
events may change the state of the market in general. The ability of Amana to
provide prices and execute orders depends on the availability of prices and
liquidity in exchanges, markets and other places from which the Amana collects
data.
In
addition, and the Amana maintains its financial stability through hedging with
other parties, the group may be unable to execute clients’ orders if it is
unable to enter into a suitable trading for the hedge. Market conditions may
affect the client's ability to place orders or trade with Amana.
Financial
markets may fluctuate quickly, which will affect the prices on the platforms.
Price movements in Amana will have a direct and real-time impact on customer
positions and accounts.
The
matter also includes technical risks, such as system failure. Maintenance
periods or problems connecting to the Internet prevent you from entering the
platform and thus execute orders.