Investing Basics: Forex
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Additional margin may be required to keep the position open should the trade move against the investor.
Commissions, actual finance rates, taxes and transaction costs are not included in this discussion but can affect final outcome and should be considered.
Trade costs for Forex trading with Charles Schwab Futures and Forex are reflected in the bid-ask spread.
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Forex trading involves leverage, carries a substantial level of risk, and is not suitable for all investors. Please read the Risk Disclosure for Forex: https://www.schwab.com/resource/forex-risk-disclosure-statement.
Forex accounts are not protected by the Securities Investor Protection Corporation (SIPC). Forex accounts do not receive a preference in any bankruptcy proceeding pursuant to Part 190 of the CFTC's regulations.
Read additional CFTC and NFA futures and forex public disclosures for Charles Schwab Futures and Forex LLC.
Forex trading services provided by Charles Schwab Futures and Forex LLC. Trading privileges subject to review and approval. Not all clients will qualify. Forex accounts are not available to residents of Ohio or Arizona.
Charles Schwab Futures and Forex is the counterparty to all forex customer trades, and exclusively uses straight-through processing such that it automatically (without human intervention and without exception) enters into the identical but opposite transaction with another liquidity provider (creating an offsetting position in its own name).
Charles Schwab Futures and Forex LLC is a CFTC-registered Futures Commission Merchant and NFA Forex Dealer Member.
Charles Schwab Futures and Forex LLC (NFA Member) and Charles Schwab & Co., Inc. (Member SIPC) are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.
This material is provided for informational and demonstration purposes only, and should not be considered an offer to sell, a solicitation of an offer to purchase, a recommendation or personalized investment advice. Futures products, market data, and strategies referenced were selected randomly, and are not suitable for all investors. Investors should review potential transactions for their own particular situations. Data here is obtained from what are considered reliable sources; however, its accuracy, completeness or reliability cannot be guaranteed.
Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.
Past performance is no guarantee of future results.
Margin trading increases your level of market risk. Your downside is not limited to the collateral value in your margin account. Schwab may liquidate, without contacting you, to meet a margin call. Schwab may increase its "house" maintenance margin requirements at any time and is not required to provide you with advance written notice. You are not entitled to an extension of time on a margin call.