Disclaimer for Risk

Formax Risk Disclaimer for Widening Spread

Definition of widening spread: As a STP platform, Formax provides floating spread transaction. In particular cases, spreads of trading products will be several times of average value, we call it widening spread. Spreads of Forex and precious metals will widen during periods of special news, and spreads of CFDs usually widen at the close of regular futures trading.Reasons of widening spread:First of all, we need to know STP principles for successful transaction:Order execution process...view more

Formax Risk Disclaimer for Slippage

Why slippage occurs?When your instruction such as market price order, take-profit order, stop-loss order or pending order is triggered by system price, the system will send your order to liquidity providers to complete trades at the earliest time. In a fraction of a second (usually at millisecond level), if the market price changes, different from popping up“The price has changed, are you sure you want to complete trade?”, Formax platform will not ask client to reconfirm but execute orders directly at the latest price... view more

Formax Risk Statement about Forced Liquidation

Formax Forced Liquidation Ratio:100%.Formax initiates margin call but not forced liquidation when advance payment (margin) ratio reaches 150% and the biggest loss order has triggered warning. When advance payment ratio drops below 100%, the system will start to liquidate from the biggest loss order to the smallest. Should be noticed that all the orders won’t be liquidated at the same time, but one by one... view more

Formax Risk Statement about Price Gap

Definition of Price Gap:For every kind of trading product, when big data (e.g. non-farm data), major event (e.g. rate hike or rate cut), important financial person speech (e.g. Fed president’s speech about monetary policy), significant transaction or other emergent influential incident takes place in the market, one big manifestation is price gap... view more

Formax Risk Statement about Hedging Position and Loss Account

Definition of Hedging Position:Hedging position is a practice of taking a position in one market to offset and balance risk adopted by assuming a same position in a contrary or opposing market or investment, also known as hedge. Types of Hedging Position:Fix Profit Hedge and Fix Loss Hedge.When a investor believes that the main movement of one product won’t change in a certain period, but there is a risk of volatile or rebound, and he doesn’t want to close the positions he is holding currently, he could take a position in a contrary to fix his profit... view more