You agree to use the platforms at your own risk.
Without limiting the foregoing, the Services contained within these platforms are suitable only for customers who are able to bear the loss of all the money they invest, and who understand the risks and have experience in taking risks involved in financial markets.
The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign exchange, CFD's, commodities and stocks on-line trading, and seek advice from an independent financial advisor if you have any doubts.
Trading CFD's and Foreign Exchange can put Client’s capital at risk, especially if used in a speculative manner. CFD's and Foreign Exchange are categorized as high risk complex Financial Instruments and Clients may lose the amount invested. Trading CFDs and Foreign Exchange is not suitable for all investors.
The investment decisions made by the Clients are subject to various markets, currency, economic, political, business risks etc', and will not necessarily be profitable.
The Client acknowledges and without any reservation accepts that, notwithstanding any general information which may have been given by the Company, the value of any investment in Financial Instruments may fluctuate either upwards or downwards. The Client acknowledges and without any reservation accepts the existence of a substantial risk of incurring losses and damages as a result of buying or selling any Financial Instrument and acknowledges his willingness to take such risk.
Set out below is an outline of the major risks and other significant aspects of CFD's and Foreign Exchange trading:
- Trading in CFD's and Foreign Exchange is VERY SPECULATIVE AND HIGHLY RISKY and is not suitable for all members of the general public but only for those investors who:
understand and are willing to assume the economic, legal and other risks involved. taking into account their personal financial circumstances, financial resources, life style and obligations are financially able to assume the loss of their entire investment. have the knowledge to understand CFD's and Foreign Exchange trading and the Underlying assets and Markets.
The Company will not provide the Client with any advice relating to CFD's or Foreign Exchange, the Underlying Assets and Markets or make investment recommendations including occasions where the Client shall request such advice and/or recommendation. However the Company may provide the Client with information and tools produced by third parties on an “as is” basis (i.e. the Company does not approve, or endorse, or affect the said information and or tools), which may be indicative of trading trends or trading opportunities. The Client accepts and understands that taking any actions based on the information and/or tools provided by third parties may result in losses and or general reduction of value of the Client’s assets.
- The Company does not accept liability for any such losses resulting from actions taken by the Client on the basis of information and or tools produced by third parties.
- CFD's and Foreign Exchange are derivative financial instruments deriving their value from the prices of the underlying assets/markets in which they refer to (for example currency, equity indices, stocks, metals, indices futures, forwards etc.).It is important therefore that the Client understands the risks associated with trading in the relevant underlying asset/ market because fluctuations in the price of the underlying asset/ market will affect the profitability of his trade.
- Information of the previous performance of CFD's or Foreign Exchange, the Underlying Assets and Markets does not guarantee its current and/or future performance. The use of historical data does not constitute a binding or safe forecast as to the corresponding future performance of CFD's and Foreign Exchange trading, to which the said information refers.
- Some Financial Instruments trade within wide intraday ranges with volatile price movements. Therefore, the Client must carefully consider that there is a high risk of losses. The price of a Financial Instrument is derived from the price of the Underlying Asset in which the Financial Instruments refers to. Financial Instruments and related Underlying Markets can be highly volatile. The prices of Financial Instruments and the Underlying Asset may fluctuate rapidly and over wide ranges and may reflect unforeseeable events or changes in conditions, none of which can be controlled by the Client or the Company. Under certain market conditions it may be impossible for a Client Order to be executed at declared prices leading to losses. The prices of Financial Instruments and the Underlying Assets will be influenced by, amongst other things, changing supply and demand relationships, governmental, agricultural, commercial and trade programs and policies, national and international political and economic events and the prevailing psychological characteristics of the relevant market place.
- Liquidity risk refers to the capacity to readily monetize assets without suffering a significant discount in their prices. The Client accepts and acknowledges that the Underlying Instruments on some Derivative Products on offer by the Company may be inherently illiquid or sometimes face persistent liquidity strains due to adverse market conditions. Illiquid Underlying Assets may exhibit high levels of volatility in their prices and consequently a higher degree of risk, this typically leads to larger gaps in ASK and BID prices for an Underlying Instrument than would otherwise prevail under liquid market conditions. These large gaps may be reflected on the prices of the Derivative Product the Company offers.
CFD's and Foreign Exchange offered by the Company are off-exchange transactions (i.e. over-the-counter). The trading conditions are set by us (in line with the trading conditions received by our liquidity providers), subject to any obligations we have to provide best execution, to act reasonably and in accordance with our Client Agreement and with our Best Interest and Order Execution Policy. Each position within CFD and Foreign Exchange instruments that the Client opens through our Trading Platform results in the entering of an Order with the Company; such Orders can only be closed with the Company and are not transferable to any other person.
While some off-exchange markets are highly liquid, transactions in off-exchange or non- transferable derivatives may involve greater risk than investing in on-exchange derivatives because there is no exchange market on which to close out an Open Position. It may be impossible to liquidate an existing position, to assess the value of the position arising from an off-exchange transaction or to assess the exposure to risk. Prices need not be quoted, and, even where they are, they will be established by dealers in these instruments and consequently it may be difficult to establish what a fair price is.
The Company is using an Online Trading System for transactions in CFD's and Foreign Exchange which does not fall into the definition of a recognized exchange or Multilateral Trading Facility and so do not have the same protection.
- The Transactions in the Financial Instruments offered by the Company are not currently subject to exchange or clearing house requirements/obligations.
- It is understood that the Client has no rights or obligations in respect to the Underlying Assets/Instruments relating to the CFD's or Foreign Exchange he is trading. There is no delivery of the Underlying Asset.
- Under certain trading conditions it may be difficult or impossible to liquidate a position. This may occur, for example, at times of rapid price movement if the price rises or falls in one trading session to such an extent that under the rules of the relevant exchange trading is suspended or restricted. Placing a Stop Loss will not necessarily limit the Client’s losses to the intended amounts, because market conditions may make it impossible to execute such an Order at the stipulated price. In addition, under certain market conditions the execution of a Stop Loss Order may be worse than its stipulated price and the realized losses can be larger than expected.
- Slippage is the difference between the expected price of a Transaction in a CFD or Foreign Exchange, and the price the Transaction is actually executed at. Slippage often occurs during periods of higher volatility (for example due to news events) making an Order at a specific price impossible to execute and also when large Orders are executed when there may not be enough interest at the desired price level to maintain the expected price of trade.
INFORMATION ON RISKS SPECIFICALLY ASSOCIATED WITH CFDs:
- CFD's and Foreign Exchange available for trading with the Company are non-deliverable/transactions giving an opportunity to make profit on changes in the Underlying Asset (stocks, currencies, commodities, precious metals and any other asset according to the Company’s discretion from time to time). If the Underlying Asset movement is in the Client’s favor, the Client may achieve a good profit, but an equally small adverse market movement can not only quickly result in the loss of the Clients’ entire deposit but also any additional commissions and other expenses may be incurred. So, the Client must not enter CFD's and Foreign Exchange trading, unless he is willing to undertake the risks of losing entirely all the money which he has invested and also any additional commissions and other expenses incurred.
Investing in CFD's and Foreign Exchange, carries risks and the Client should be aware of these risks. Transactions in CFD's and Foreign Exchange may also have a contingent liability and the Client should be aware of the implications of this.
Leverage and Gearing:
In order to place CFD's and Foreign Exchange Orders, the Client is required to maintain a margin. Margin is usually a relatively modest proportion of the overall contract value. This means that the Client will be trading using “leverage” or “gearing”. This means a relatively small market movement can lead to a proportionately much larger movement in the value of the Client’s position, and this can work either against the Client or for the Client.
At all times during which the Client opens trades, they must maintain enough equity, consider all running profits and losses, for meeting the margin requirements. If the market moves against the Client’s position and/or Margin requirements are increased, the Client may be called upon to deposit additional funds on short notice to maintain his position. Failing to comply with a request for a deposit of additional funds, may result in closure of his position(s) by the Company on his behalf.
It is important that you monitor your positions closely because the effect of leverage and gearing speed the occurrence of profits or losses. It is your responsibility to monitor your trades and while you have open trades you should always be in a position to do so.
The Client acknowledges and accepts that, regardless of any information which may be offered by the Company, the value of CFD's may fluctuate downwards or upwards and it is even probable that the investment may become of no value. This is owed to the margining system applicable to such trades, which generally involves a comparatively modest deposit or margin in terms of the overall contract value, so that a relatively small movement in the Underlying Market can have a disproportionately dramatic effect on the Client’s trade. If the Underlying Market movement is in the Client’s favor, the Client may achieve a good profit, but an equally small adverse market movement can not only quickly result in the loss of the Clients’ entire deposit but also expose the Client to a large additional loss.