High Leverage and low Margin can result in significant losses due to small price fluctuations in the traded products. High Leverage allows the Customer to assume more risk, magnifying both losses and profits; which can result in loss up to and in excess of Deposits and Margin. The Customer must consider that if the trend on the market is against him/her the Customer may sustain a total loss of the initial margin funds and any additional funds deposited to maintain open positions. The Customer is responsible for all his/her risks, financial resources he/she uses and for the chosen trading strategy.
2. Quotes & Margin
Quotes and Margins are set by UMO Markets and may differ from other firms. UMO Markets will exercise discretion in setting and collecting Margin. UMO Markets is authorised to convert funds in the Customer’s Trading Account for Margin into and from such foreign currency at a rate of exchange determined by UMO Markets in its sole discretion on the basis of then‐prevailing money market rates. The Customer must maintain the minimum Margin Level requirement on Customer’s Open Positions at all times. The Customer assumes the responsibility to monitor the Customer’s Required Margin. UMO Markets has the right to liquidate any or all Open Positions whenever the minimum Margin requirement is not maintained. To avoid a Margin Call it is highly recommended to maintain a Margin Level of 1000% or greater.
Stop Loss Orders or Stop Limit Orders, which are intended to limit losses may reduce the losses incurred by price fluctuations, however such orders may not be able to execute under certain abnormal market conditions.
4. Product Risks
The profit and loss in any given Transaction may be affected by a currency rate that is used to convert to the Accounts base currency. Accounts shall be opened in the following currencies: USD as stated by the Customer and accepted by UMO Markets.