RISK STATEMENT
The official language of the company is English. For a more detailed description of company activities, please visit the English version of the site. Information translated into languages other than English is for information purposes only and has no legal force, and the company is not responsible for the accuracy of information provided in other languages.
EXPLANATION OF RISKS FOR DERIVATIVE TRANSACTIONS
This short notice, which is an addendum to the General Terms of Business, is not intended to specify all risks and other important aspects of foreign currency and derivative transactions. Given the risks, you should not resolve transactions for such products unless you are aware of the nature of the contracts you enter, the legal aspects of those relationships under such contracts, or your degree of risk exposure. Derivatives may allow you to take high risks, so they may not be suitable for you. You should thoroughly evaluate how suitable such transactions are for you, taking into account your experience, goals, financial resources, and other important factors.
1. FOREIGN CURRENCY AND DERIVATIVE OPERATIONS
Leveraged trading allows you to increase the volume of your trade. This affects your potential profit and loss situation. The smaller the collateral amount you will allocate, the higher the risk you take. While margin trading, market conditions may not move as you want, and in such a case, you can strengthen the margin to support your position. In cases where the adequacy of the collateral is not met, the company may close your position or positions.
Orders and Strategies that reduce risk
If allowed by local law, placing “stop-limit” orders that limit the maximum loss amount of certain orders may be counterproductive in some market conditions. (For example, when the market is illiquid)
2. ADDITIONAL RISKS SPECIFIC TO FOREIGN TEMPORARY AND DERIVATIVE TRANSACTIONS
2.1 Terms of Entry into Contracts
You will need to obtain detailed information from your broker about the terms of entering into contracts and the obligations attached to them (for example, where you may accrue an obligation to perform or accept any asset under a delivery) futures contract or, in the case of an option, expiration dates and options execution information about time limits for Under certain circumstances, an exchange or clearinghouse may change the requirements of undecided contracts (including strike price) to reflect changes in the market for that asset.
2.2 Funds invested and property
When conducting an operation in your home country or abroad, you should be familiar with protective tools, especially within the margins of security you invest in the form of cash or other assets if a trading firm is going to go bankrupt. The extent to which you can return your cash or other assets is governed by the legislation and local country standards in which the Other Party operates.
2.3 Commission Fees and Other Costs
Before joining any trader, you should get clear information about all commission fees, payments and any other expenses that must be paid by you. These expenses will affect your net financial result.
2.4 Transactions in Other Jurisdictions
Conducting transactions in markets in other jurisdictions, including markets that are formally linked to your domestic market, may result in additional risks for you. The regulation of said markets may differ from yours in terms of the degree of investor protection (including a lower degree of protection than yours). Your local regulator is unable to enforce mandatory compliance with rules set by regulators or markets in other jurisdictions where you transact.
2.5 Currency Risk
The profit and loss of transactions with contracts denominated in a foreign currency other than the currency of your account are affected by fluctuations in the exchange rate when converted from the contract currency to the account currency.
2.6 Liquidity Risk
Liquidity risk affects your ability to trade. The risk that your CFD or asset will not be traded at the time you want to trade (avoid a loss or make a profit). In addition, the margin you must deposit with the CFD provider is recalculated daily based on changes in the value of the underlying assets of the CFDs you own. If this recalculation (revaluation) results in a decrease in value compared to the previous day’s value, you will need to immediately pay the CFD supplier in cash to readjust the margin and cover the loss. If you fail to make the payment, the CFD provider may close your position whether or not you participate in this action. You will then have to cover the loss even if the price of the underlying asset recovers. If you don’t have the required margin, even if one of these positions shows a profit for you at that stage, There are CFD providers that liquidate all your CFD positions. To keep your position open, you may be required to allow the CFD provider to charge additional payments (usually from your credit card) at its discretion as necessary for the respective margin calls. In a fast-moving, volatile market, this way you can easily manage a large credit card bill.
2.7 “Stop Loss” Limits
To limit losses, many CFD providers offer you the opportunity to choose “stop loss” limits. This will automatically close your position when it reaches a price limit of your choice. For example, there are some situations where the “stop loss” limit is ineffective when there are rapid price movements or market closings. Stop loss limits cannot always protect you from losses.
2.8 Enforcement risk
Execution risk is associated with the fact that transactions cannot occur immediately. For example, there may be a delay between the moment you place your order and the moment it is processed. During this period, the market may have moved against you. That is, your order is not fulfilled at the price you expect. Some CFD providers allow you to trade even when the market is closed. Note that the prices of these trades may differ greatly from the closing price of the underlying asset. In many cases, the spread may be wider than it was when the market was open.
2.9 Counterparty Risk
Counterparty risk is the risk that the CFD issuing provider (ie your counterparty) will default and be unable to meet its financial obligations. If your funds are not properly separated from the CFD provider’s funds and the CFD provider is facing financial difficulties, there is a risk that you will not be able to get any money back on your part.
2.10 Trading Systems
Most of the usual “voice” and electronic trading systems use computer devices for routing orders, balancing transactions, registration and clearing transactions. As with other electronic devices and systems, they are subject to temporary failure and malfunction. Your chances of getting certain losses reimbursed may depend on the liability limits set by the trading systems supplier, markets, swaps and/or trading firms. These limits may vary; You should get detailed information from your broker about this.
2.11 Electronic Commerce
Trading using any Electronic Communication Network may differ not only from trading in the normal “open circuit” market, but also from trading using other electronic trading systems. If you take any action on the Electronic Communications Network, you take risks specific to that system, including the risk of a failure in the operation of hardware or software. System failure may result in: Your order may not be fulfilled as instructed; an order may not be carried out at all; It may not be possible to constantly receive information about your positions or to meet the collateral requirements.
2.12 Over-the-Counter operations
In some jurisdictions, firms are allowed to carry out over-the-counter transactions. Your agent can act in return for these transactions. The nature of such transactions is due to the complexity or impossibility of estimating closing positions, estimating values, or determining fair price or risk exposure. For the reasons mentioned above, these transactions can be associated with increased risks. The regulation that governs over-the-counter operations may be less strict or provide a specific mode of regulation. You will need to become familiar with the rules and risks associated with them before taking such actions.
