Hummingbird - Risk Policy
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70.6% of retail investor accounts lose money when trading CFDs with this broker. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. 70.6% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.

Risk Warning

It is extremely important that you read and comprehend the following risks associated with trading foreign exchange before you begin trading with your Hummingbird account.



High Risk Investment

Foreign exchange transactions bring about a high level of risk, and are not suitable for everyone. The price and liquidity of a currency or currency pair can be influenced by changes in the political, economic, and natural states of those countries, and any transactions involving currencies are subject to volatile market conditions. Before entering this market, it is crucial that you carefully reflect over your investment objectives, trading proficiency, and ability to deal with risk. It is possible to lose all the money you invested in a trade, and we advise against depositing and investing in any funds that have been borrowed from others.




Website & App Content

All content, including but not limited to news, prices, research, analyses, and opinions on this website, is provided as general market commentary, and does not serve as investment advice. Hummingbird will not accept liability for any loss or damage that may result from usage or dependence on website or app content. Although Hummingbird checks frequently to ensure that the content on the website and app is accurate, it does not warrant that all information is accurate and true. Additionally, the content on the website and app may be updated any time without notice.




Disbursement

Hummingbird’s content, services, and investments are not intended for residents in any country where such distribution or use would be contrary to local law or regulation. Visitors to this website or the Hummingbird application are responsible for understanding the terms and conditions, and shall not be considered a solicitation to any person in any authority where such an act would be illegal.

Please make sure to read over our Risk Disclosure Statement and contact us should any questions or concerns arise.




HUMMINGBIRD RISK DISCLOSURE STATEMENT

This brief statement does not disclose all the risks associated with foreign exchange trading (“forex”). Because all customer accounts are self-directed, it is important that customers understand the substantial risks and losses that may arise as a result of their trades. Please review the following risks prior to trading in order to determine whether trading is appropriate for you and if it meets your financial objectives, experience, and available resources.



1. Leveraged trading

Leveraged trading, known as a “Trade Multiplier within the Hummingbird app, is the act of using leverage to increase the return on investment significantly. Leveraged trading may produce significant profits for traders but may also come with a significant cost. Because small market movements result in a proportionally larger effect, losses will be amplified, and customers may lose all the funds they deposited. Thus, customers should only trade money that they can manage and are willing to lose.




2. Customer deposits

Funds deposited by customers are not held in separate accounts at banks, but are combined with funds deposited by other customers. The funds customers deposit have no regulatory protections; they are not protected by the Securities Investor Protection Corporation, and are also not protected by insurance or a derivatives clearing organization should Hummingbird become bankrupt or insolvent. In the case that Hummingbird becomes bankrupt or insolvent, customer funds as well as any amounts owed from trades can be handled as an unsecured creditor’s claim.




3. Trading positions and pricing

Trading may be suspended or restricted under certain market conditions or market rules where buying and selling may be difficult due to price limits, which are the levels that trading prices are allowed to rise or fall in a day. In such situations, customers may face greater risk of loss. Because different prices may be offered to different customers, and these prices may or may not reflect prices available for trading at other foreign currency markets, it can be difficult to gauge whether the prices offered are consistent with the market rate.

Please make sure to read over our Risk Disclosure Statement and contact us should any questions or concerns arise.




4. Order and strategy execution

While the usage of “stop-loss”, known as Auto-Close within Hummingbird, orders are suggested to limit and avoid downside risk instead of a margin call as a final stop, it may be impossible for such orders to be consistently useful because market conditions or certain market rules may hinder them from being executed. It is recommended for customers to maintain adequate margin, add more funds to their trading accounts, and reduce or close overall positions to avoid margin closeouts.




5. Currency risks

Foreign exchange transactions will be affected by fluctuations in currency rates when converting from one currency to another. Thus, profits or losses made from transactions will be affected by these fluctuations as well.




6. Slippage

Prices offered by Hummingbird for customers’ trades will only be legitimate at the exact date and at the exact time that the price is conferred upon them. In situations where markets have high volatility, the expected price may be different than the price at which the trade was carried out with. Slippage is the term used to describe this occurrence, and it is the difference between the two prices. Under these circumstances, trades will be executed at the exchange rate at the time the order is received by Hummingbird’s server. Slippage may prove to be advantageous at times, but may also prove to be disadvantageous, depending on market condition.




7. Investment advice

The content on Hummingbird’s website and application should never be regarded as investment advice. Thus, customers should understand and be able to handle the risks of foreign exchange, whether it is by themselves or with the assistance of a financial advisor.




8. Mobile trading

Mobile trading technology is one of the latest innovations in foreign exchange trading and may be difficult for some users to understand the functionality of trading on a portable device. It is important for customers to start out with a free trading account and make sure they fully comprehend the workings of the application before opening a real trading account. The risks associated with Hummingbird’s application include but are not limited to transmission problems that may inflict a delay in price quotation or inability to trade. Problems may also arise from poor mobile connectivity, strength of the user’s mobile signal, and issues between their internet service and phone service providers.




9. Undisclosed conflicts

Engaging in foreign exchange trading may also bring additional risks from introducing brokers who are compensated by retail foreign exchange dealers or futures commission merchants for introducing new users. These introducing brokers may not have any experience in trading, and must be registered in order to carry out their role. Users must carefully consider these solicitors and ensure that they are registered before allowing their dealers or a solicitor to carry out trading decisions.




Questions, comments and requests regarding this risk policy are welcome and should be addressed to info@tradehummingbird.com.

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