+1 242-702-3105
One Montague Place, 4th Fl, East Bay Street, Nassau, NP The Bahamas
+1 242-702-3105

Although Blue Isle offers no services to retail clients, Counsel requires that all standard RISK Warnings by International Regulators be published within our site.

Principal Risk Factors Associated with Off-Exchange Trading

Each potential client should read the following section of this disclosure document and potential clients should consider the following risks before entering this investment.

Forex Trading is Speculative and Volatile

Forex trading prices are volatile. Price movements of Forex trading are influenced by among other things, changing supply and demand relationships, and trade, fiscal, monetary and exchange control programs and policies of governments, national and international political and economic events and changes in national and international interest rates and rates inflation, currency devaluations and reevaluations, and emotions of participants in the market place. In addition, governments from time to time intervene, directly and by regulation, in certain markets, particularly in the currencies. Such intervention is often intended to influence prices directly. Forex trading, unlike many other securities, does not pay any dividend. Profits can be made in Forex trading by selling a contract at a higher price than that at which it was bought or by buying a contract at a lower price than at which it was sold. In addition, interest may be paid or charged for holding FX Spot Positions over night.

Forex trading is Highly Leveraged

The low margin deposits normally required in Forex trading accounts (typically between 1% and 4% of the value of the contract purchased or sold) permit an extremely high degree of leverage. Accordingly, a relative small price movement in a Forex trading contract may result in immediate and substantial change in valuation to the investor. For example, if at the time of purchase, ten percent of the price of the Forex trading contract is deposited as margin, then a ten percent (10%) increase/decrease in the price of the Forex contract would, if the contract were then closed out, result in an equal gain/loss of the margin deposit before any deduction for the trading commission. Thus, like other leveraged investments, any trade could possibly result in a loss or gain.

Forex trading is Highly Leveraged

The low margin deposits normally required in Forex trading accounts (typically between 1% and 4% of the value of the contract purchased or sold) permit an extremely high degree of leverage. Accordingly, a relative small price movement in a Forex trading contract may result in immediate and substantial change in valuation to the investor. For example, if at the time of purchase, ten percent of the price of the Forex trading contract is deposited as margin, then a ten percent (10%) increase/decrease in the price of the Forex contract would, if the contract were then closed out, result in an equal gain/loss of the margin deposit before any deduction for the trading commission. Thus, like other leveraged investments, any trade could possibly result in a loss or gain.

Forex Trading Markets May Be Illiquid

As stated in the risk disclosure statement at the beginning of this document, there may be times when it is difficult to liquidate a position. This can occur, for example, in off market hours such as the time between the USA Close and Asian Open, or when the market makes a “Limit Move”. In these circumstances, clients could incur paper losses until it becomes possible to liquidate the position.

Electronic Order Entry

The Advisor places trades via electronic order platforms for its managed Program called Electronic Communications Network (ECN). An ECN broker will send its trades to various liquidity providers (banks and dark pools) used by the brokerage. The ECN will internally match orders placed by users of the network. For instance, if one trader using the ECN wants to go long, the brokerage will match the order with another wanting to go short. This means that users of ECN Brokers can often take advantage of 0 pip spreads when the brokerage successfully matches a user’s orders. ECN brokers make money by charging its users commission on top of any spread. The reason why traders prefer ECN brokerages is that ECN’s can often provide traders with tighter spreads. In rare instances risk exists that a trade may not be placed or may be placed at a later time than originally desired. These occurrences, which are beyond the Advisor’s control, could result in losses to a client’s account.

Program/Systematic Trading

The Advisor may utilize a method of trading in which computer generated signals are given to determine trade execution. If the Advisor is incorrect in the interpretation of this information, client accounts can suffer losses. Trading decisions made by the Advisor on behalf of participating customers are based primarily on fundamental and technical analysis. However, its trading decisions may not adhere strictly to any particular trading formula or system.

Lack of Diversification in Advisor’s Trade Fund

In the Advisor’s Trade Fund, trades can be generally executed across multiple OTC FX Spot and Options trading contracts, (including Spot Gold, Silver and Crude), and multiple FX Spot Pairs. In most instances however, the Trade Fund’s performance is dependent upon fluctuations specifically in G7 Currency Pairs OTC FX Options/Spot Pairs being traded and the Advisor’s ability to assess and profit from these pairs or occasionally only a couple of these pairs. Since there are instances in which the Trade Fund is not typically diversified into many other OTC Spot/Options pairs and contracts, clients may not necessarily benefit from price movements in other OTC FX Spot/Options trading pairs and contracts.

Possible Effects of Speculative Position Limits

Insofar as speculative position limits are applicable, all OTC FX Spot/Options trading accounts owned, held, managed and controlled by the Advisor, are aggregated for position Limit purposes. The advisor may manage additional client accounts in the future. The Advisor believes that established position limits will not adversely affect the Advisor’s contemplated trading. However, it is possible that from time to time the trading decisions of the Advisor may be modified and positions held or controlled by the Advisor may have to be liquidated in order to avoid exceeding applicable position limits. Generally, most all FX OTC Options positions placed are not held overnight, however, any contributing Spot positions held overnight or longer holds a higher margin requirement than positions traded within the same day. These higher margins will commit a greater amount of equity to the trade, and could affect the degree to which the trading portfolio can be diversified for the time period.

Short-term and Intraday Trading

Short-term and intraday trading involves aggressive trading, and generally you will pay commissions or spreads on each trade. The total daily commissions/spreads that you pay on your trades will add to your losses or slightly reduce any profits. BIFX does not generally trade aggressively on a short term daily basis.

A Participating Client’s Futures Commission Merchant Entity May Fail

Under the Trading Advisor’s Trade Fund, the PRIME OF PRIME BROKER is required to maintain client funds in segregated accounts.

Charges to a Client’s Account

A Client account is obligated to pay brokerage commissions & spread fees on each transaction regardless of whether the transaction realizes profits. The Advisor’s Performance and/or Incentive Fees are not based on broker commissions but rather upon realized appreciation in open/closed trading positions. Advisor’s Performance and/or Incentive Fees previously paid against such unrealized appreciation may not be refunded in the event of a loss. Typically, there are no exchange fees in FX Spot trading; however PRIME BROKERS are typically compensated through the difference between the bid and offer rates (Spread). With OTC FX Options and Spot Gold, Silver and Oil, the PRIME BROKERS typically charge a commission in addition to the spread between the bid and offer rates (Spread). The forgoing list of risk factors does not purport to be a complete explanation of the risks involved in Forex trading. Potential investors should read the entire Broker disclosure document before deciding to invest. A participating customer should have personal resources beyond any funds which the customer deposits in the trading account to be advised by the Advisor and such funds should represent separate investment capital to the customer.

Client Disclaimer

You are entering the website of Blue Isle Markets (BlueIsleFx.com). The information contained on this website is intended for Professional and Institutional Investors Only. Blue Isle Markets Inc does not accept retail Investors or traders from the United States.

By entering this site, you confirm that you are 1) a Qualified or Professional Investor or 2) NOT a retail Investor or Trader from the United States.

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