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Risk Warnings & Execution Risks

Last Updated: December 2025

In the interest of providing our clients with the best possible trading experience, it is imperative that all traders are informed about the execution risks involved with trading.

HIGH RISK INVESTMENT

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade products offered by your broker, you should carefully consider your objectives, financial situation, needs and level of experience.

PREMIERETRADE and or AFFILIATES (PREMIERE) provide general advice that does not take into account your objectives, financial situation or needs. The content of this website must not be construed as personal advice. The possibility exists that you could sustain a loss of some or all of your funds and therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin. PREMIERE recommends you seek advice from an independent financial advisor.

Premiere Market Opinions

Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary, and does not constitute investment advice. PREMIERE will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.

Internet Trading Risks

There are risks associated with utilizing an internet-based deal-execution trading system including, but not limited to, the failure of hardware, software, and internet connection. Since PREMIERE does not control signal power, its reception or routing via the internet, configuration of your equipment or reliability of its connection, we cannot be responsible for communication failures, distortions or delays when trading via the internet.

No Dealing Desk (NDD) Execution Risks

Some forex trading customers will use Brokers who provide forex execution via a straight through processing, or No Dealing Desk execution model. In this model Brokers pass on to its clients the best prices that are provided by one of their liquidity providers (which include global banks, financial institutions, prime brokers and other market maker) with a fixed mark-up for each currency pair.

Slippage

Brokers aim to provide clients with the best execution available. However, there are times when, due to an increase in volatility or volume, orders may be subject to slippage. Slippage most commonly occurs during fundamental news events or periods of limited liquidity.

Examples of specific order instructions include:

  • Good ‘Til Cancelled (“GTC”) Orders: Your entire order will be filled at the next available price(s) at the time it is received.
  • Immediate or Cancel (“IOC”) Orders: All or part of your order will be filled at the next available price with the remaining amount cancelled should liquidity not exist.
  • Fill or Kill (“FOK”) Orders: The order must be filled in its entirety or not at all.

Liquidity & Exotic Pairs

In illiquid markets, traders may find it difficult to enter or exit positions at their requested price. The following are considered examples of Exotic Currencies which may have limited liquidity:

EUR/HUFSGD/JPYUSD/HUFUSD/SGD EUR/PLNTRY/JPYUSD/MXNUSD/TRY EUR/TRYUSD/CZKUSD/PLNUSD/ZAR HKD/JPYUSD/HKDUSD/RUBZAR/JPY

Delays in Execution

Delays in execution may occur using No Dealing Desk execution model for various reasons, such as technical issues with the trader’s internet connection; a delay in order confirmation from a liquidity provider; or by a lack of available liquidity.

Widened Spreads

There may be instances when spreads widen beyond the typical spread. Spreads are a function of liquidity and in periods of limited liquidity, at market open, or during rollover at 5:00 PM ET, spreads may widen in response to uncertainty in the direction of prices.

Greyed Out Pricing

Greyed out pricing is a condition that occurs when forex liquidity providers that supply pricing to Brokers are not actively making a market for particular currency pairs and liquidity therefore decreases.

Rollover Costs

Rollover is the simultaneous closing and opening of a position at a particular point during the day in order to avoid the settlement and delivery of the purchased currency. This term also refers to the interest either charged or applied to a trader’s account for positions held “overnight,” meaning after 5 p.m. ET.

Holiday/Weekend Execution

The quoted hours for some Brokers Trading Desk are from Sunday 5:15 p.m. ET to Friday at 4:55 p.m. ET. Outside of these hours, most of the major world banks and financial centers are closed. The lack of liquidity and volume during the weekend impedes execution and price delivery.

Gapping: Sunday’s opening prices may or may not be the same as Friday’s closing prices. The market may gap if there is a significant news announcement or an economic event changing how the market views the value of a currency.

Margin Calls and Close Outs

Margin calls are triggered when your usable margin reaches zero. This occurs when your floating losses reduce your account equity to a level that is less than or equal to your margin requirement. Therefore, the result of any margin call is subsequent liquidation unless otherwise specified.

Please keep in mind that when the account’s useable margin reaches zero, all open positions are triggered to close.

Mobile Trading Platforms

There are a series of inherent risks associated with the use of the mobile trading technology such as the duplication of order instructions, latency in the prices provided, and other issues that are a result of mobile connectivity. Prices displayed on the mobile platform are solely an indication of the executable rates.

Dealing Desk (DD) Execution Risks

Some Brokers also offer forex execution via a Dealing Desk execution model. Brokers will act as a dealer and is the counterparty to any trades that you undertake. In this model, Brokers compensation may not be limited to our standard markup and our interests may be in direct conflict with yours.

Conflict of Interest

Additionally, we face market risk as a result of entering into trades with you. Brokers may take steps to mitigate its risk arising from market making more effectively by, at our sole discretion and at any time and without previous consent, transferring your underlying account to your Brokers NDD execution offering.

Execution Differences

Dealing Desk execution offers competitive spreads that may be up to one pip lower than some Brokers NDD spreads. However, XPRESS Brokers does not guarantee that quotes, prices, or spreads will always be better on one form of execution as compared to the other.

Inverted Spreads (Dealing Desk)

When trading with Brokers using Dealing Desk execution model, all quotable prices are provided by their Trading Desk. Brokers Trading Desk may rely on various third party sources for the prices that it makes available to clients. In the event that a manifest (misquoted) price is provided to us, all trades executed on that price may be revoked.