In consideration of Target Trading agreeing to enter into Over-the-Counter (“OTC”) Foreign exchange Contracts with the undersigned (hereinafter referred to as the “Customer”), Customer acknowledges, understands and agrees that:
1. Trading is very speculative and risky
Foreign Exchange Trading is highly speculative and suitable only for those customers who (a) understand and are willing to assume the economic, legal and other risks involved, and (b) are financially able to assume losses significantly in excess of Margin or deposits. Foreign Exchange is not an appropriate investment for retirement funds. Customer represents, warrants and agrees that Customer understands these risks that Customer is willing and able, financially and otherwise, to assume the risks of Foreign Exchange Trading and that loss of Customer’s entire Account Balance will not change Customer’s life style.
2. High leverage and low margin can lead to quick losses
The high leverage and low Margin associated with Foreign Exchange Trading can result in significant losses due to price changes in Foreign Exchange Contracts, Cross Currency Contracts. Customers must maintain the Minimum Margin Requirement on their Open Positions at all times. It is the customer’s responsibility to monitor his/her Account Balance. Target Trading has the right to liquidate any or all Open Positions whenever the Minimum Margin Requirement is not maintained. Increasing leverage increases risk.
3. Prices, margin and valuations are set by Target Trading and may be different from prices reported elsewhere
Target Trading will provide prices to be used in trading, valuation of Customer positions and determination of Margin requirements. Although Target Trading expects that these prices will be reasonably related to prices available in the interbank market, prices reported by Target Trading may vary from prices available to banks and other participants in what is known as the interbank market. Target Trading will exercise considerable discretion in setting and collecting Margin. Target Trading is authorized to convert funds in Customer’s Account for Margin into and from such Foreign Currency at a rate of exchange determined by Target Trading in its sole discretion on the basis of then-prevailing money market rates.
4. Telephone orders and immediate execution.
Market Orders executed through the Target Trading Trading Desk are completed when Target Trading says “deal” or “done.” At that point Customer has bought or sold and cannot cancel the Market Order. By placing Market Orders through the Target Trading Trading Desk, Customer agrees to such immediate execution and accepts the risk of this immediate execution feature.
5. Market recommendations are informational, customer makes independent decisions, and Target Trading is not an adviser or a fiduciary to customer
The market recommendations provided by Target Trading do not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any Foreign Exchange Contracts, Cross Currency Contracts. Each decision by Customer to enter into a Contract or other transaction with Target Trading and each decision whether a Contract or other transaction is appropriate or proper for Customer is an independent decision by Customer. Target Trading is not acting as an advisor or serving as a fiduciary to Customer. Customer agrees that Target Trading has no fiduciary duty to Customer and no liability in connection with and is not responsible for any liabilities, claims, damages, costs and expenses, including attorneys’ fees, incurred in connection with Customer following Target Trading trading recommendations or taking or not taking any action based upon any recommendation or information provided by Target Trading.
6. Recommendations are based on personal judgments and are not guaranteed
The market recommendations of Target Trading are based solely on the judgment of Target Trading personnel. These market recommendations may or may not be consistent with the market positions or intentions of Target Trading, its affiliates and employees. The market recommendations of Target Trading are based upon information believed to be reliable, but Target Trading cannot and does not guarantee the accuracy or completeness thereof or represent that following such recommendations will reduce or eliminate the risk inherent in Foreign Exchange.
7. There is no Central Market or Clearinghouse Guarantee of Payment
Each Contract is a contract directly between Target Trading and the Customer. There is no clearinghouse and no guarantee by any other party of Target Trading payment obligations to the customer. Customer must look only to Target Trading for performance on all Contracts in Customer’s Account and for return of any Margin or Collateral.
8. No Guarantees of Profit
There are no guarantees of profit or freedom from loss in Foreign Exchange Trading. Customer has received no such guarantees from Target Trading or from any of its representatives. Customer is aware of the risks inherent in Foreign Exchange Trading and is financially able to bear such risks and withstand any losses incurred.
9. Customer may not be able to close open positions
Due to market conditions or other circumstances Target Trading may be unable to close out Customer’s position at the level specified by Customer, and Customer agrees Target Trading will bear no liability for failure to do so.
10. Third Party Agents
In the event that Customer grants trading authority or control over Customer’s Account to a third party (the “Trading Agent”), whether on a discretionary or non- discretionary basis, Target Trading shall in no way be responsible for reviewing Customer’s choice of such Trading Agent or for making any recommendations with respect thereto. Target Trading makes no representations or warranties concerning any Trading Agent; Target Trading shall not be responsible for any loss to Customer occasioned by the actions of the Trading Agent; and Target Trading does not, by implication or otherwise, endorse or approve of the operating methods of the Trading Agent. If Customer gives the Trading Agent authority to exercise any of its rights over its Account, Customer does so at Customer’s risk. Even though the undersigned grants authority to Trading Agent, client should be diligent and closely scrutinize all account activity.
11. Internet Trading
Since Target Trading does not control signal power, its reception or routing via Internet, configuration of Customer’s equipment or reliability of its connection, Target Trading shall not be liable for any claims, losses, damages, costs or expenses, including attorneys’ fees, caused, directly or indirectly, by any breakdown or failure of any transmission or communication system or computer facility or trading software, whether belonging to Target Trading, Customer, any market, or any settlement or clearing system when Customer trades online (via Internet).
12. Telephone Orders
Target Trading is not responsible for disruption, failure or malfunction of telephone lines.
13. Quoting Errors
Should a quoting error occur due to a mistype of a quote or a misquote given by telephone and/or electronic means (including responses to Customer requests), Target Trading is not liable for any resulting errors in Account Balances and reserves the right to make necessary corrections or adjustments on the Account involved. Any dispute arising from such quoting errors will be resolved on the basis of the fair market value, as determined by Target Trading, in its sole discretion, of the relevant Currency at the time such an error occurred. In cases where the prevailing market represents prices different from the prices Target Trading has posted on our screen, Target Trading will attempt, on a best efforts basis, to execute trades on or close to the prevailing market prices. These prevailing market prices will be the prices, which are ultimately reflected on the Customer Statements. This may or may not adversely affect customer realized and unrealized gains and losses.