The purpose of this Trading and Investment Risk Warning (hereinafter referred to as the "Warning") is to notify the Client, acting as a trader or Investor, of the possible risks involved in trading in financial markets and the financial losses associated with them. This Warning may not disclose all the information about all the potential risks in the financial markets due to the variety of possible situations. However, this Warning is considered and is considered a reliable and complete source of information for the Client, allowing the latter to form a sufficient understanding of the main types of potential risks associated with the implementation of trading operations in relation to financial instruments using margin lending.
This Warning is not intended to discourage the Client from engaging in transactions with financial instruments, including potential investment activities, but is intended to help the Client understand and assess the risks associated with trading or investment transactions in relation to these financial instruments and to responsibly approach the adoption of informed investment decisions.
The Client understands that trading on the market is associated with high risks and is aware of the likelihood of possible losses from trading and investment operations. Before starting the above activities, it is recommended to conduct a thorough analysis of your financial situation.
The Client understands that there is a risk of losing the deposit in full during the process of trading or investing in financial markets. The Client fully understands and admits that the results of trading or investing activities obtained in past periods cannot be a guarantee of receiving such income in the future.
When trading on margin, a relatively small change in an asset can have a significant impact on the trader's trading account due to the leverage effect. When the market moves against the trader's position, the trader may suffer a loss equal to the initial deposit and any additional funds deposited to maintain open positions. In any case, the trader is solely responsible for taking into account all risks, using financial resources and choosing an appropriate trading strategy.
In any trading activity that involves leverage, the following should be taken into account first and foremost, among other things:
When trading on leveraged terms, a relatively small change in the rate of the relevant instrument may have a significant impact on the Client's trading account due to the leverage effect. If the market moves against the Client's position, the Client may suffer a loss in the amount of the entire current deposit and any additional funds deposited by the Client to maintain open positions.
There is always a possibility of price changes as a result of the volatility factor. A number of instruments have significant intraday ranges of price changes (quotes), which implies a high probability of receiving both profit and loss (loss) from trading operations. In addition, high volatility of the market itself is possible. Such changes do not depend on the will of the Company and, as a rule, are caused, for example, by the release of key economic news or other significant factors influencing the relevant market.
The Client assumes the risks of financial losses (damages) due to malfunctions of information, communication, electronic and other communication and data transmission systems. When performing trading operations using the client terminal, the Client assumes the risks of losses (damages) that may arise due to, among other things: failures in hardware, software and poor quality of communication on the Client's side, improper operation of the Client's equipment, incorrect settings of the client terminal and/or untimely update of its latest version, ignorance of the relevant instructions and regulations of the Company.
Market risk is the possibility of orders being executed at rates that differ significantly from the rates contained in the order. The existence of such risk is due to the large number of financial market participants who work with different capital, goals, and trading strategies.
There are real risks of financial losses caused by force majeure circumstances. The Client agrees that the Company shall not be liable for the Client's losses caused directly or indirectly by government restrictions, market regulations, suspension of trading, military action or any other force majeure circumstances that are beyond the control of the Company.
Socio-political and legal risks are the possibility of losses arising due to changes made to current legislation, in particular, those concerning the fiscal system (taxation), as well as due to significant changes in the economic and political situation associated with the change of authorities and management, the President, the Government, the Parliament, and the social instability that follows such a change.
The Client fully assumes financial and other risks in the event that the implementation of transactions (and related actions) on financial markets is prohibited or restricted by the legislation of the country of residence (location) of the Client.
The Client assumes the risk of any financial damages (losses) caused by the fact that he/she did not receive or received with a delay any message from the Company. There is a risk associated with unauthorized access to the Client's personal account by third parties due to insufficient measures to protect personal information and store passwords. The Client bears full responsibility for the risks associated with the storage of access data to the personal account, including the trading account, terminal and other systems of limited access, and is obliged to prevent third parties from accessing such systems. The Client's losses and risks associated with the restoration of access to the personal account, trading or other account do not impose obligations on the Company, except for the provision of new access data to the Client, subject to sufficient and unambiguous identification of the Client as the owner of this account.
Risk control is an important part of successful trading or investment activities. Effective risk management when trading on financial markets requires not only careful monitoring of the amount of risk, but also a strategy (approaches) for minimizing losses.
A trader should always consider the risks associated with trading in the market, as well as in other financial markets. There are two different approaches used in such trading: conservative and risky. The conservative approach, in contrast to the risky one, involves placing fewer transactions, operating with longer time periods, using smaller lot sizes, strict risk management and obtaining moderate profits.
In order to minimize the risks associated with trading, a trader can use tools such as a limit order or a stop order. When placing a market order, experienced traders always know at what level they would like to exit the trade.
All Clients, before starting to use the Company's services, are strongly recommended to open a demo trading account and practice trading operations on a demo trading account until they feel that they have sufficiently studied the rules and procedures for trading operations in the financial markets.