Risk Disclosure

Last updated: April 2026

1. General Risk Warning

Trading foreign exchange (Forex), Contracts for Difference (CFDs), precious metals, indices, energy commodities, and cryptocurrencies on margin carries a high level of risk and may not be suitable for all investors. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite.

You should be aware that you could lose some or all of your initial investment. You should not invest money that you cannot afford to lose.

2. Leverage Risk

SCapitalFX offers leverage up to 1:200 on forex instruments. While leverage allows you to control a larger position with a smaller deposit, it significantly amplifies both potential profits and potential losses.

For example, with 1:200 leverage, a 0.5% adverse move in the market can result in a 100% loss of your deposited margin. You may lose more than your initial deposit if market conditions move sharply against your position.

3. Market Risk

Financial markets are subject to rapid and unpredictable price movements. Factors that can cause significant volatility include:

  • Economic data releases (employment, inflation, GDP)
  • Central bank interest rate decisions
  • Geopolitical events and conflicts
  • Natural disasters
  • Market sentiment and speculation
  • Low liquidity periods (weekends, holidays, overnight sessions)

During periods of extreme volatility, spreads may widen significantly, orders may experience slippage, and stop-loss orders may not be executed at the requested price.

4. Cryptocurrency Risk

Cryptocurrency markets are particularly volatile and subject to additional risks including:

  • Extreme price swings (10%+ in a single day is not uncommon)
  • Regulatory changes that may affect trading availability
  • Technology risks including blockchain congestion and network failures
  • Cryptocurrency deposits are irreversible — sent to wrong addresses cannot be recovered

5. Execution Risk

While SCapitalFX strives for instant order execution, there may be situations where:

  • Orders are executed at a different price than requested (slippage)
  • Orders cannot be executed due to insufficient liquidity
  • System outages or technical failures prevent order placement or modification
  • Internet connectivity issues affect your ability to manage positions

6. Overnight and Weekend Risk

Positions held overnight may be subject to swap charges. Markets may gap significantly between the close and next opening, particularly over weekends. Stop-loss orders may not protect against gap risk.

7. No Guaranteed Returns

Past performance of any trading strategy, system, or methodology is not indicative of future results. There are no guaranteed profits in financial trading. Any claims of guaranteed returns should be treated with extreme caution.

8. Client Responsibility

By opening an account and trading with SCapitalFX, you acknowledge that:

  • You understand the risks associated with leveraged trading
  • You are trading with funds you can afford to lose
  • You have sought independent financial advice if needed
  • You accept full responsibility for your trading decisions
  • SCapitalFX does not provide investment advice or personal recommendations

9. Seek Independent Advice

If you do not fully understand the risks involved in trading leveraged financial instruments, we strongly recommend that you seek advice from an independent financial advisor before opening an account.

10. Contact

If you have questions about the risks of trading, please contact us: