Foreign Currency and Exchange Rates. Foreign markets will involve different risks from the UK markets. In some cases the risks will be greater. Investments in foreign securities may expose investors to the risk of exchange rate fluctuation and investors who deposit collateral denominated in one currency may be subject to margin calls in circumstances where the obligations secured by such collateral are denominated in another currency (in addition to the risk of margin calls for fluctuations in relative values). Some currencies are not freely convertible and restrictions may be placed on the conversion and/or repatriation of investors’ funds including any profits or dividends. Changes in foreign exchange rates will affect the Sterling value of any investment. For example, if you sell an investment that is trading at the same price in local currency at which it was purchased you may receive less than you paid for it if the exchange rate has changed unfavourably in respect of your investment.
Appears in 4 contracts
Samples: Professional Clients and Eligible Counterparty Agreement, Professional Client and Eligible Counterparty Agreement, Professional Client and Eligible Counterparty Agreement
