Like other forms of investing that seek higher than normal returns, forex trading is risky. The high degree of volatility within the forex market, particularly within the intraday market, and the ability to significantly leverage positions, can result in meaningful losses that could result in the loss of your total invest.
Forex trading is therefore only recommended for those who are experienced and/or have knowledge of the market and the inherent risks involved. All potential investors should be aware of the risks involved in forex prior to investing in the market. It is highly recommended that you seek advice from your own professional adviser who should be familiar with the risks involved in currency trading.
Commodity Futures Trading Commission
Forex, Futures and Options trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex, Futures and Options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell Forex Futures or Options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in this presentation. The past performance of any trading system or methodology is not necessarily indicative of future results.
Global Disclaimers:
The included performance figures are no guarantee of future results and should not be interpreted as a forecast of future performance. We make no promise as to the performance of the account, and while the investment objective is major capital appreciation over time, no representation is being made or implied that any account shown will or is likely to achieve the profit or loss shown. Investors should appreciate that due to the volatile nature of the forex markets, the value of your investments can decrease as well as increase and, as such, funds invested should constitute risk capital. With aggressive trading, while profits can be substantially losses can be much greater too.
THIS COMPOSITE PERFORMANCE RECORD IS HYPOTHETICAL. HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY MULTI-ADVISOR MANAGED ACCOUNT WILL OR IS LIKELY TO ACHIEVE A COMPOSITE PERFORMANCE RECORD SIMILAR TO THAT SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN A HYPOTHETICAL COMPOSITE PERFORMANCE RECORD AND THE ACTUAL RECORD SUBSEQUENTLY ACHIEVED.
ONE OF THE LIMITATIONS OF A HYPOTHETICAL COMPOSITE PERFORMANCE RECORD IS THAT DECISIONS RELATING TO THE SELECTION OF TRADING ADVISORS AND THE ALLOCATION OF ASSETS AMONG THOSE TRADING ADVISORS WERE MADE WITH THE BENEFIT OF HINDSIGHT BASED UPON THE HISTORICAL RATES OF RETURN OF THE SELECTED TRADING ADVISORS. THEREFORE, COMPOSITE PERFORMANCE RECORDS INVARIABLY SHOW POSITIVE RATES OF RETURN. ANOTHER INHERENT LIMITATION ON THESE RESULTS IS THAT THE ALLOCATION DECISIONS REFLECTED IN THE PERFORMANCE RECORD WERE NOT MADE UNDER ACTUAL MARKET CONDITIONS AND, THEREFORE, CANNOT COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FURTHERMORE, THE COMPOSITE PERFORMANCE RECORD MAY BE DISTORTED BECAUSE THE ALLOCATION OF ASSETS CHANGES FROM TIME TO TIME AND THESE ADJUSTMENTS ARE NOT REFLECTED IN THE COMPOSITE.
The risk of loss in trading forex or foreign currencies can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition.
The high degree of leverage that is often obtainable in commodity trading can work against you as well as for you. The use of leverage can lead to large losses as well as gains.
In some cases, managed forex accounts are subject to substantial charges for management and advisory fees. It may be necessary for those accounts that are subject to these charges to make substantial trading profits to avoid depletion or exhaustion of their assets.
The CFTC has not passed upon the merits of participating in the trading program of any CTA nor on the adequacy or accuracy of a CTA's disclosure document. Other disclosure statements are required to be provided to you before a commodity account may be opened for you.
All information contained in this report is based upon information obtained from specific CTA disclosure documents, fund prospectuses, or the CTAs themselves. While the information is believed to be reliable, because of the complexities involved with the data and the fact that it has not been verified, we cannot guarantee its completeness or accuracy.
Composite performance tables are used to illustrate the overall success or failure of a CTA in trading the futures markets. These composite results are not indicative of, and have no bearing on, any individual results that may be attained by a CTA in the future. It is important to understand that composite returns reflect aggregate performances from all accounts traded and do not reflect the different rates of returns achieved by individual accounts. When available, CTA analysis will always be compiled using performance tables that are inclusive of notional equity. Notional equity refers to the amount of funds that are pledged to a trading account by an investor but are not actually deposited.
In addition, certain trading programs will have historical performances based upon extracted trades. Performance tables including notional equity or extracted trading are considered by the CFTC to be hypothetical. Although all trades used in the compilation of the performance tables have actually been executed, certain hypothetical assumptions need to be made in order to estimate interest earned, fees paid, or the amount of leverage used for these kinds of accounts.
The NFA requires the following disclosure statement in reference to hypothetical results:
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.
Estimations of CTA margins used are provided by the respective trading advisors. Although these estimates are believed to be reliable, the CTA may at his or her sole discretion place trades requiring margin far in excess of the estimates listed in this report. It is the customer's responsibility to maintain sufficient capital in his/her trading account(s) to meet initial margin requirements.
These reports do not constitute a solicitation to invest in any program included herein. These reports are designed to provide readers with accurate and objective information in regard to managed futures investments. They are offered with the understanding that the publisher is not engaged in rendering legal, financial, brokerage, or other professional advice. If legal or other expert assistance is required, the services of a competent professional should be sought.
You should carefully consider whether your financial condition permits you to participate in futures trading. In so doing, you should be aware that futures and options trading can quickly lead to large losses as well as gains. Such trading losses can sharply reduce the value of your investment.
All information provided on these pages is for fair use. Normal copyright protections apply to all commercial use of any documents or information. Tri Global FX and/or any of its divisions, affiliates, or associated entities are not responsible for any loss due to inaccuracies in the information provided. Nothing presented here should be construed as investment advice or recommendations.
Although adding Managed Futures investments to a portfolio may provide diversification, Managed Futures investments are not a hedging mechanism; there is no guarantee that Managed Futures investments will appreciate during periods of inflation or stock and bond market declines.
The foregoing may contain "forward-looking statements" which are based on management's beliefs as well as on a number of assumptions concerning future events made by and information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside the control of Tri Global FX and/or any of its divisions, affiliates, or associated entities, that could cause actual results to differ materially from such statements.
The distribution of this material may be restricted by law in certain jurisdictions. Persons accessing these and the other pages are required to inform themselves about and observe any such restrictions. Any and all of the material given or received, written or oral, or in any other way expressed and transmitted to another by, for, on behalf of, or in any way for the benefit of Tri Global FX and/or any of its divisions, affiliates, or associated entities are neither an offer nor a solicitation of an offer to sell investments in any jurisdiction in which such an offer or solicitation is not lawful or in which the person making such an offer or solicitation is not qualified to do so or to anyone to whom it is unlawful to make such offer or solicitation.
You should seek independent advice as to your suitability to speculate in the forex markets if you are at all unsure, as well as confirming the legal and tax and accounting characteristics and consequences, of the transaction and that you are able to assume those risks. Tri Global FX and/or any of its divisions, affiliates, or associated entities make no representation as to the accuracy or completeness of any information contained herein or otherwise provided, received or transmitted to another by whatever means.
Any person placing reliance on any of the information presented herein or in any way received by another does so entirely at their own risk and Tri Global FX and/or any of its divisions, affiliates, or associated entities does not accept any liability as a result. Forex, Securities and Derivatives Markets may be subject to rapid and unexpected price movements and past performance is not necessarily, or to be interpreted as such, a guide to future performance.
Any opinions, news, research, analyses, prices, or other information contained in any material whatsoever including any and all of the material given or received, written or oral, or in any other way expressed and transmitted to another by, for, on behalf of, or in any way for the benefit of Tri Global FX and/or any of its divisions, affiliates, or associated entities, including but in no way limited to anything on the Tri Global FX website, is provided as general market commentary, and does not constitute investment advice. Tri Global FX will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
The content of the Tri Global FX website is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions. Tri Global FX has taken reasonable measures to ensure the accuracy of the information on the website, however, Tri Global FX and/or any of its divisions, affiliates, or associated entities, does not guarantee its accuracy, and will not accept liability for any loss or damage which may arise directly or indirectly from the content thereon or the inability to access the website, for any delay in or failure of the transmission or the receipt of any instruction or notifications sent through this website, or by any other means whatsoever.
NOTIONAL ACCOUNT FUNDING
The Client should request the FCM to advise you of the amount of cash or other assets
(“Actual Funds”) which should be deposited to the trading program for your account to
be “Fully Funded”. This is the amount which will determine the number of contracts traded
in your account, and should be an amount sufficient to make it unlikely that any
further cash deposits would be required from you over the course of your participation in the
trading program. You are reminded that the account size that you have agreed to in writing with
the FCM (the “Nominal” account size) is not the maximum possible loss that your account may
experience. You should review your account statements received from your FCM in order to
determine the actual activity in your account, including profits, losses and current cash equity
balance. Please note that cash additions, cash withdrawals, and net performance does not change
the trading level by which the trading program determines the number of contracts to trade in your account.
Furthermore, to the extent that the equity in your account is at any time less than the Nominal
Account Size you should be aware of the following:
- Although your gains and losses, fees and commissions measured in dollars will be the
same, they will be greater when expressed as a percentage of account equity.
- You may receive more frequent and larger margin calls in a “Notionally Funded” account.
- Your account may experience greater volatility, as measured by rates of return, achieved in relation to the assets actually deposited in your account, than an account funded exclusively with actual funds.
- Management fees will be charged on the basis of the designated account size, which is inclusive of the notional funds. Accordingly, you will pay higher advisory fees as
measured by the percentage of such fees in relation to assets actually deposited in your account, than an account funded exclusively with actual funds.
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