Risk reminder

Dear Customer:

At 8:30 pm on Friday, May 5, 2017, the US Department of Labor will release non-farm payrolls data. The non-agricultural data not only directly reflects the state of the U.S. job market and economic trends, but whether the results of the data are beautiful or not also greatly affects the Fed's monetary policy. Therefore, as the most sensitive monthly economic indicator in the foreign exchange market, before and after the release of non-agricultural employment data, the prices of market-related products may fluctuate violently or gap. And during this period, due to the scarcity of market liquidity, during the transaction of customer orders in the interbank market, order slippage may also be encountered due to the expansion of the spread. Therefore, CXM Direct LLC hereby reminds investors that in order to avoid risks, please control your positions in advance and arrange funds reasonably to prevent the occurrence of insufficient funds caused by market fluctuations.

As a pure STP-ECN platform, CXM Direct LLC will not impose any restrictions on transactions during the non-agricultural period, and will not take away the profits you generate. However, please understand that CXM Direct LLC does not You will be compensated for any losses incurred during this period (including losses due to slippage or forced liquidation).

Special Note:

• The forced liquidation ratio of CXM Direct LLC is 100%, but if your position ratio is too high and you encounter severe market conditions, the liquidation ratio may be lower than 100%, or even cause you a negative equity. If your account has a negative value, we will ask you to replenish the funds. In serious cases, we will ask a lawyer to pursue it. Please know and understand. Do not hold positions too high.
• When the spread is widened in the locked position, the prepayment ratio will be reduced due to the decrease in equity, so the position may also be forced to close. Therefore, customers who lock the position should pay attention and replenish the margin in time to ensure the appropriate prepayment ratio.
• Statement on the risk of slippage during trading:

5Month7French Election Risk Alert

In addition, the final vote in the French presidential election will be held on May 7, and the impact of this risk event on the market will be particularly significant. CXM Direct LLC has adjusted the leverage of 13 trading products of European currency pairs, pound-day, US-Japan, and European index. For details, please refer to "CXM Direct LLCSome trading products on May 4, 2017< strong>Leverage Adjustment Announcement": Click to view.

What are the potential risks to the market from the French election?

During the period when market liquidity is scarce, heavy positions and excessive participation in cross-currency currencies may lead to higher inter-bank costs, and may also be accompanied by significant price gaps and limited liquidity, which may eventually lead to order slippage and other phenomena. occur.

Slippage refers to the difference between the point of the customer's order and the point of the last transaction during the transaction. There are three reasons for slippage:

1. When there is a delay in the network, the customer's order will also be delayed, so there will be a gap between the opening price and the transaction price that he sees.
2. Since we adopt the seamless docking (STP+ECN) transaction mode, all the transaction instructions of the customer are directly sent to the ECN, and the ECN adopts the electronic matching transaction mode, so it must be ensured that the transaction volumes of both parties are matched. If If there is an imbalance, then there is a so-called slippage situation.
3. When the data is published, liquidity providers, like traders, will become particularly cautious when the market is unclear, and will take the form of not providing quotes or increasing the spread. In this case, when customers trade, Slippage also occurs.

Slippage cannot be avoided, nor can the range be predicted. Therefore, CXM Direct LLC does not take any responsibility for the slippage caused by the market gap, nor for the losses caused by the forced liquidation of the account due to the slippage when encountering special market conditions.

How to deal with market risk?

Clients are advised to trade cautiously during the French elections. The results of the general election throughout the day are likely to cause large swings in market prices.

• Increase the available funds in the account—sufficient funds are deposited in case the margin of the trading product increases, and can cope with large fluctuations in market prices. Make sure the account funds meet the CXM Direct LLC margin ratio requirements.

• Reduce risk exposure - Periods of strong market volatility require reduced risk exposure (reduced positions). A lower position can keep your capital from losing more than your defined risk limit. If you want to further reduce risk exposure, you can suspend trading in the products most affected by the election.

• Use stops and set wider stops—Using stops in market trading is critical. Especially during the general election period when there may be large market volatility, so please make sure that the position has a fixed stop loss to protect the position from major losses. (Please understand that due to liquidity reasons, the stop loss cannot completely lock the risk, and may cause excessive slippage due to the market trend.)

• Locked position—Clients with locked positions (holding short and long positions of a certain product at the same time) should understand that the widening of the spread may cause a margin warning or forced liquidation. Therefore, if you lock the position, you need to completely lock the account, and do not leave any products (such as gold) that take up the margin even if the position is locked (make sure that the prepayment is 0). At the same time, in order to avoid the execution of take profit and stop loss, the account will lose the complete lock function, it is recommended not to set the stop profit and stop loss when locking the position, unless you have sufficient free margin.

• It is recommended to suspend trading during this period. If you must trade, please check the risk statement before trading to make sure that you can correctly understand the results of each order execution during the transaction.

If you have any questions about the above announcement, please contact us via Email [email protected] or call , we will be available 24*5 Hours are dedicated to serving you.

Originated from ECN Limited

Risk Statement:

Foreign exchange margin trading is a high-risk investment and is only suitable for investors who can afford the risk of loss. Before customers decide to conduct foreign exchange margin trading, please be sure to fully measure their financial status, experience level, risk tolerance, investment goals, and understand all the rules and market risks related to foreign exchange margin trading. In view of the possibility of losing part or all of the investment principal in any investment, customers should treat foreign exchange investments with caution and must not trade rashly. If you have any investment questions, CXM Direct LLC recommends that you seek advice from an independent financial advisor.