1. Purpose of this notice
This Risk Disclosure is provided to help you understand the nature and risks of trading over-the-counter leveraged products, including contracts for difference (CFDs) on foreign exchange, commodities, indices, shares, ETFs and digital assets, before you decide to trade with DuaFx.
It cannot disclose every risk. You should not trade unless you understand the products, have considered your own financial circumstances and risk tolerance, and are prepared to sustain a total loss of the funds you deposit. If anything in this notice is unclear, seek independent professional advice before trading.
2. CFDs are complex, high-risk instruments
A CFD is an agreement to exchange the difference in the value of an underlying instrument between the time a position is opened and closed. You never own the underlying asset. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
The majority of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
3. Leverage and margin risk
Leverage allows you to open a position whose notional value is many times the margin you commit. A 1% adverse price move on a position leveraged 100:1 wipes out the entire margin allocated to it. Leverage magnifies losses in exactly the same proportion as it magnifies gains.
If your account equity falls below required margin levels, positions may be closed automatically at the prevailing market price without prior notice. Automatic stop-out can crystallise losses at unfavourable prices, and you may lose substantially more than you anticipated when opening the position, up to your full account balance.
Retail clients receive negative balance protection, meaning losses cannot exceed deposited funds; professional clients may not receive the same protection.
4. Market volatility and gapping
Financial markets can move sharply and without warning in response to economic data, central bank decisions, geopolitical events or shifts in liquidity. During volatile periods spreads may widen significantly and execution prices may differ from quoted prices.
Markets can also “gap”: prices may jump from one level to another with no opportunity to trade at intermediate prices, particularly over weekends, at market open, or around major news. Stop-loss orders are executed at the next available price after triggering and are therefore not guaranteed; a gap can cause a stop order to fill at a materially worse level than the one you set.
Digital asset CFDs are particularly volatile and may move more than 20% in a single day. Position sizes and leverage on these instruments should be considered with corresponding caution.
5. Currency and overnight financing risk
Where you trade an instrument denominated in a currency other than your account base currency, exchange rate fluctuations affect your profit and loss independently of the instrument's own price movement.
Positions held overnight incur swap or financing charges that can accumulate materially over time, especially on leveraged positions held for extended periods. Swap rates change with underlying interest rate markets and can move against you during the life of a trade.
6. Counterparty and execution model
CFDs traded with DuaFx are over-the-counter transactions between you and the Company: they are not traded on an exchange, and positions can only be closed with us. Although client funds are segregated as described in our Terms & Conditions, over-the-counter trading involves counterparty risk that exchange-traded products do not carry in the same form.
Prices quoted by DuaFx are derived from liquidity provider feeds and may differ from prices quoted elsewhere for similar instruments. Our best-execution arrangements are described in the Terms & Conditions.
7. Technology and operational risk
Trading through an electronic platform carries risks including hardware or software failure, internet connectivity loss, and delayed or failed order transmission. While DuaFx operates redundant infrastructure with a 99.95% uptime objective, no electronic system is failure-proof.
You are responsible for maintaining suitable equipment and connectivity, safeguarding your credentials, and having contingency arrangements — including our support line — for managing positions if platform access is interrupted.
8. No advice and past performance
DuaFx provides execution-only services. Market commentary, analysis, educational content and economic calendars published by us are generic information, not personal investment advice, and take no account of your individual circumstances.
Past performance, simulated results and forecasts are not reliable indicators of future results. No content on our website or platform is a promise or guarantee of trading profits.
9. Your acknowledgement
By opening an account and trading with DuaFx you acknowledge that you have read and understood this Risk Disclosure, that you are financially able to bear the loss of your entire deposited capital, and that you trade entirely at your own risk.
Only trade with money you can afford to lose. If you are in any doubt about the suitability of leveraged trading for your circumstances, obtain independent financial advice before proceeding.