Risk Warning

The following should be read carefully, as it describes some of the main risks in dealing in the Forex market.

This brief statement does not disclose all of the risks and other significant aspects of spot foreign currency trading ("Forex"). In light of the risks, you should undertake such transactions only if you ("Customer") understand the nature of the trading into which you are about to engage and the extent of your exposure to risk. Trading the Forex is not suitable for many members of the public. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances.

Spot Forex Trading

• THE FOREIGN CURRENCY TRADING YOU ARE ENTERING INTO IS NOT CONDUCTED ON AN EXCHANGE. THEREFORE, ALPARI (US), LLC IS ACTING AS A PRINCIPAL IN THESE TRANSACTIONS AND IS NOT ACTING AS YOUR AGENT. IN A PRINCIPAL TRANSACTION, ALPARI (US), LLC ACTS AS THE BUYER WHEN YOU SELL AND THE SELLER WHEN YOU BUY AND, AS A RESULT, ALPARI (US)'S INTERESTS MAY BE IN CONFLICT WITH YOURS. UNLESS OTHERWISE SPECIFIED IN YOUR WRITTEN AGREEMENT OR OTHER WRITTEN DOCUMENTS ALPARI (US), LLC ESTABLISHES THE PRICES AT WHICH IT OFFERS TO TRADE WITH YOU. THE PRICES ALPARI (US), LLC OFFERS MIGHT NOT BE THE BEST PRICES AVAILABLE AND ALPARI (US), LLC MAY OFFER DIFFERENT PRICES TO DIFFERENT CUSTOMERS. IF ALPARI(US), LLC ELECTS NOT TO COVER ITS OWN TRADING EXPOSURE, THEN YOU SHOULD BE AWARE THAT ALPARI (US), LLC MAY MAKE MORE MONEY IF THE MARKET GOES AGAINST YOU. ADDITIONALLY, SINCE ALPARI (US), LLC ACTS AS THE BUYER OR SELLER IN THE TRANSACTION, YOU SHOULD CAREFULLY EVALUATE ANY TRADE RECOMMENDATIONS YOU RECEIVE FROM ALPARI (US), LLC OR ANY OF ITS SOLICITORS.
  
  OFF-EXCHANGE TRADING IS SUBJECT TO LIMITED REGULATORY OVERSIGHT COMPARED TO REGULATION OF ON-EXCHANGE TRADING.

• Creditor Priority in Bankruptcy.

  The Transactions the Customer is entering into with Alpari are not traded on an exchange. Therefore, under the U.S. Bankruptcy Code, the Customer's funds may not receive the same protections as funds used to Margin or guarantee exchange-traded futures and options contracts, which receive a priority in bankruptcy. Since that same priority has not been given to funds used for off-exchange Forex Trading, if Alpari becomes insolvent and the Customer has a claim for amounts deposited or profits earned on Transactions with Alpari, the Customer's claim may not receive a priority. Without a priority, the Customer is a general creditor and the Customer's claim will be paid, along with the claims of other general creditors, from any monies still available after priority claims are paid. Even the Customer's funds that Alpari keeps separate from its own operating funds may not be safe from the claims of other general and priority creditors.

• Effect of "Leverage" or "Gearing".

  Forex Transactions carry a high degree of risk. The amount of initial margin may be small relative to the value of the foreign currency so that transactions are "leveraged" or "geared". A relatively small market movement may have a proportionately larger impact on the funds the Customer have deposited or will have to deposit: this may work against you as well as for you. You may sustain a total loss of initial margin funds and any additional funds deposited with the firm to maintain your position. If the market moves against the position your margin levels are increased, you may be called upon to pay substantial additional funds on short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss and you will be liable for any resulting deficit.

• Risk-reducing orders or strategies.

  The placing of certain orders (e.g., "stop-loss" orders, where permitted under local law, or "stop-limit" orders), which are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders. Strategies using combinations of positions, such as "spread" and "straddle" positions, may be as risky as taking simple "long" or "short" positions.




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