Pennyswift
Risk Disclosure
Required financial, leverage, volatility and copy-trading risk warning notices.
High Risk Investment Warning
Trading Foreign Exchange (Forex) and Contracts for Difference (CFDs) on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you.
1. Capital at Risk
Before deciding to trade Foreign Exchange or any other financial instrument, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment, and therefore, you should not invest money that you cannot afford to lose.
2. Leverage and Margin Risk
Leverage allows you to control larger position sizes with a relatively small amount of capital. While leverage can multiply your profits, it also multiplies your losses. Even a small price movement against your position can result in a margin call or the complete liquidation of your account balances.
3. Market Volatility & Liquidity
Financial markets can be highly volatile and unpredictable. Market conditions, geopolitical events, economic announcements, and interest rate policies can cause prices to fluctuate rapidly. During periods of high volatility, order execution may be delayed, slippage may occur, and liquidity may dry up, making it difficult or impossible to exit trades at desired prices.
4. Copy-Trading Specific Risks
Copy-trading is a service offered by third-party brokerage platforms allowing you to mirror the trades of external providers. Mirroring trades carries specific risks, including:
- Execution Delay (Latency): Differences in execution times between the master account and your account can lead to different entry/exit prices.
- Provider Discretion: The provider you copy may change their strategy, trade size, or risk management without warning.
- Historical Fallacy: Past performance metrics of any copied trader do not guarantee future success or profitability.
5. Pennyswift Role Limitation
Pennyswift serves exclusively as an onboarding assistant and educational forum. We do not provide personalized financial advice, we do not manage trading funds, and we do not act as an investment fiduciary. All investment actions and configurations you choose to execute are at your sole discretion and personal risk.