Oanda just sent an update to their Customer Agreement and Risk Disclosure Statement.
They have removed the Maximum Loss protection, I guess this is directly caused by the turmoil regarding the Swiss Franc and Euro earlier this year.
OANDA Europe Limited has removed the following clause:
Clause 16 - Maximum Losses. OANDA warrants and represents that the fxTrade System has been designed so that your total aggregate Realised Loss can never exceed the sum of the total aggregate deposits made to your Account and your total aggregate Realised Profit.
Changes to the Risk Acknowledgement clause:
Clause 15. Risk Acknowledgement. You acknowledge that trading in Foreign Currency Contracts and CFDs carries a high degree of risk and that you have familiarised yourself with the risks described in OANDA’s Risk Disclosure Statement. These risks include, without limitation, the following: (i) it is possible to incur a loss if, after your acquisition of an investment, exchange rates change to your detriment, even if the price of the underlying currency to which the Trade relates remains unchanged; and (ii) you may sustain a total loss of the Margin Requirement in respect of your Account that you deposit with or pay to us to establish or maintain a position and, if the market moves against you, you may be required to pay substantial additional funds at short notice but if you fail to do so within the required time, your investment position may be liquidated at a loss to you and you will be liable for any remaining deficit in your Account.
They have removed the Maximum Loss protection, I guess this is directly caused by the turmoil regarding the Swiss Franc and Euro earlier this year.
OANDA Europe Limited has removed the following clause:
Clause 16 - Maximum Losses. OANDA warrants and represents that the fxTrade System has been designed so that your total aggregate Realised Loss can never exceed the sum of the total aggregate deposits made to your Account and your total aggregate Realised Profit.
Changes to the Risk Acknowledgement clause:
Clause 15. Risk Acknowledgement. You acknowledge that trading in Foreign Currency Contracts and CFDs carries a high degree of risk and that you have familiarised yourself with the risks described in OANDA’s Risk Disclosure Statement. These risks include, without limitation, the following: (i) it is possible to incur a loss if, after your acquisition of an investment, exchange rates change to your detriment, even if the price of the underlying currency to which the Trade relates remains unchanged; and (ii) you may sustain a total loss of the Margin Requirement in respect of your Account that you deposit with or pay to us to establish or maintain a position and, if the market moves against you, you may be required to pay substantial additional funds at short notice but if you fail to do so within the required time, your investment position may be liquidated at a loss to you and you will be liable for any remaining deficit in your Account.
