ArmInfo. In Armenia, in recent years, there has been an activity among those who wish to receive permission to enter FOREX to complete transactions using leverage. The press service of the Central Bank told ArmInfo that taking into account the high riskiness of such transactions, the Central Bank set strict requirements for providing investment services on leverage transactions in the FOREX market.
In particular, such services are allowed to be provided only to professional clients, i.e. those who have the relevant experience and knowledge to understand the risks inherent in such transactions and to make independent decisions when making a transaction. Non-professional customers are prohibited from providing services for leverage transactions in the FOREX market. At the same time, to protect the rights of professional clients, the Central Bank introduced the necessary risk containment mechanisms.
The Central Bank of Armenia explains that in the FOREX market, transactions using leverage are considered highly risky and contain a real threat to investors in terms of loss of funds, since it is allowed to make a transaction in the amount exceeding the the pre-paid amount several hundred-fold. These transactions are made through derivative financial instruments. As a rule, applications for investment or trading are misleading the investor, promising easy money, which is not the case. Moreover, the investor's losses can significantly exceed the amount paid. This market is not secured from abuse - the investor has practically no opportunity to find out where his money is kept, and there are frequent cases when he/she cannot get his money back.