Prospective Clients should study the following risk warnings very carefully. Please note that we do not disclose or explain all the risks and other significant aspects involved when dealing in Financial Instruments (including Contracts for Difference “the CFDs”). We outline the general nature of the risks involved when dealing in Financial Instruments on a fair and non-misleading basis. Trader-coins executes orders in relation to one or more financial instruments mainly in CFDs on foreign exchange.
CFDs are complex financial products and not suitable for all investors. CFDs, are leveraged products that mature when an existing open position is closed. By investing in CFDs, one assumes a high level of risk and it can result in the loss of all invested capital.
Unless a Client knows and fully understands the risks involved in Financial Instruments, they should not engage in any trading activity. Clients should not risk more than they are prepared to lose. Prior to applying for a trading account with the Company or making an order, Clients should carefully consider which Financial Instrument is suitable for them, taking into account their circumstances and financial resources. If a Client is unclear or does not understand the risks involved in trading in Financial Instruments, they should consult an independent financial advisor. If after seeing the advisor, they still don’t understand these risks, then they should refrain from trading.
Purchasing and selling Financial Instruments comes with a significant risk of losses and damages, and each Client must understand that the investment value can both increase and decrease. Clients will be held liable for losses and damages, which could result in the loss of all of the Clients’ invested capital, once they make the decision to trade.
1.1. We place significant importance on the execution of the Clients’ orders and at all times, strives to offer the highest speed of execution possible, within the limitations of technology and communications links. The Client shall be responsible for the risks of financial losses caused by the failure of information, communication, electronic or any other systems. For instance, the Client may give instructions by telephone to modify or close a position. The Client is responsible for the security of his Access Data. The Company does not accept any liability in the case of such a failure.
1.2. While trading through the Client Terminal the Client shall be responsible for the risks of financial losses caused by: a) client’s or Company’s hardware or software failure, malfunction or misuse; b) poor Internet connection either on the side of the Client, the Company or both. This includes interruptions, transmission blackouts, public electricity network failures, overload of connection or hacker attacks; c) the wrong settings in the Client Terminal; d) delayed Client Terminal updates;
1.3. The Client acknowledges that at times of excessive deal flow, the Client may have some difficulties with telephone connections with a Dealer, especially in a Fast Market (for example, when key macroeconomic indicators are released).
2. ABNORMAL MARKET CONDITIONS
2.1 The Client acknowledges that under Abnormal Market Conditions the period during which the Instructions and Orders are executed, may be extended.
3. TRADING PLATFORM
3.1 The Client acknowledges that only one Order or Instruction is allowed to be in the queue at one time. Once the Client has sent an Order or an Instruction, any further Requests or Instructions sent by the Client are ignored and the “Order is locked” message will be displayed until the first Request or Instruction is executed.
4.1 The Client shall accept the risk of any financial losses – due to the fact that they have experienced delays in notices and/or receives no notices at all from us.
4.2 The Client acknowledges that the unencrypted information transmitted by email is not protected from any unauthorised access.
4.3 The Client is wholly responsible for the privacy of the information received from us and accepts the risk of any financial losses caused by the unauthorised access of a third party to the Client’s Trading Account.
4.4. Trader-coins has no responsibility if authorised/unauthorised third persons have access to information, including electronic addresses, electronic communication, personal data and access data, when the above are transmitted between us or any other party, using the internet or other network communication facilities, telephones, or any other electronic means.
5. FORCE MAJEURE EVENT
5.1 In case of a Force Majeure Event the Client shall accept the risk of financial losses.
6. RISK WARNING NOTICE FOR FOREIGN EXCHANGE AND DERIVATIVE PRODUCTS
6.1 This notice cannot disclose all the risks and other significant aspects of foreign exchange and derivative products, such as Contracts for Differences. A Client should not deal in these products unless they understand their nature and the extent of their exposure to risk. These products are risky and require regular monitoring (especially when there is higher leverage and/or volatile markets). Clients should also be satisfied that the product is suitable for them in light of their circumstances and financial position. Certain strategies, such as a “spread” position or a “straddle”, may be as risky, as a simple Long or Short position.
6.2 Although Forex and derivative instruments can be used for the management of investment risk, some of these products are unsuitable for many investors. Clients should not engage directly or indirectly with derivative products unless they know and understand the risks involved in them and that they may lose all of their money.
6.3 Under Margin Trading conditions even small market movements may have a great impact on the Client’s Trading Account. It is important to note that all accounts trade under the effect of Leverage. The Client must also consider that if the market moves against them, the Client may sustain a total loss of all of the funds deposited. The Client is responsible for all the risks, financial resources the Client uses and for the chosen trading strategy.
6.4 Some Instruments trade within wide intraday ranges with volatile price movements. Therefore, the Client must carefully consider that there is a high risk of loss as well as profit. The price of Derivative financial instruments is derived from the price of the underlying asset in which the instruments refer to (for example currency, stock, metals, indices, etc.). The prices of instruments and the underlying asset 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. Therefore, a Stop Loss order cannot guarantee the limit of loss.
6.5 In general, the volatility in the market may affect the price, speed and volume. Therefore, trading during volatile conditions, where important news and data releases are made, is incredibly risky and since the best execution criteria might not apply, as indicated in our website, the execution pricing will always be provided at the first available price.
6.6 Some of the underlying assets may not become immediately liquid as a result of reduced demand for the underlying asset and Client may not be able to obtain the information on the value of these, or the extent of the associated risks.
7 CONTRACTS FOR DIFFERENCE
7.1 The CFDs available for trading with the Trader-coins are non-deliverable spot transactions, giving an opportunity to make profit on changes in currency rates, commodities, stock market indices or share prices (called the underlying instrument). If the underlying instrument movement is in the Client’s favour, 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 incurred. The Client must not enter into CFDs unless he is willing to undertake the risk of losing all the money he has invested and/or any additional commissions and other expenses incurred.
7.2 Investing in a Contract for Differences carries the same risks as investing in a future or an option and the Client should be aware of the risks set out above.
8. FOREIGN MARKETS
78.1 Foreign markets involve various risks. On request, Trader-coins must provide an explanation of the relevant risks and protections (if any) which will operate in any foreign markets, including the extent to which it will accept liability for any default of a foreign firm with whom it deals. The potential for profit or loss from transactions on foreign markets or in foreign denominated contracts, will be affected by fluctuations in foreign exchange rates.
9. COMMISSIONS AND TAXES
9.1 Before Clients begin to trade, they should make themselves aware of all commissions and other charges for which they will be held liable. If any charges are not expressed in monetary terms (but, for example, as a percentage of contract value), the Client should ensure that they understand the true monetary value of the charges. For example, for opening a position in some types of CFDs the Client may be required to pay commission or financing fees. Commissions may be charged either in the form of a percentage of the overall value of the trade or as fixed amount.
9.2 There is a risk that the Client’s trades in any Financial Instruments including derivative instruments may be or become subject to tax and/or any other duty for example, because of changes in legislation or his personal circumstances. Trader-coins does not warrant that no tax and/or any other stamp duty will be payable. The Client is responsible for any taxes and/or any other duty and/or fee and/or expenses which may accrue in respect of his trades.
10. SUSPENSIONS OF TRADING
10.1 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 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.
11. THIRD PARTY RISK
11.1 This notice is provided to the Client in accordance with applicable legislation.
11.2 We may pass money received from the Client to a third party (e.g. a bank, a market, intermediate broker, counterparty or clearing house) to hold or control in order to effect a Transaction through or with that person, or to satisfy the Client’s obligation to provide collateral (e.g. initial margin requirement) in respect of a Transaction. The Company has no responsibility for any acts or omissions of any third party to whom it will pass money received from the Client.
11.3 The third party to whom we will pass money, may hold it in an omnibus account and it may not be possible to separate it from the Client’s money, or the third party’s money. In the event of the insolvency or any other analogous proceedings in relation to that third party, the Company may only have an unsecured claim against the third party on behalf of the Client, and the Client will be exposed to the risk that the money received by the Company from the third party, is insufficient to satisfy the claims of the Client with claims in respect of the relevant account Trader-coins does not accept any liability or responsibility for any resulting losses.
12. MARKET RISK MANAGEMENT
12.1 Market Risk is the risk of losses when the value of investments may decline over a given time period, as a result of economic changes or events that impact a large portion of the market.
12.2 Market Risk can be divided in the following categories: a) position risk: it refers to the probability of loss associated with a particular trading (long or short) position due to price changes; b) interest rate risk: the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates; c) foreign exchange risk: it is a financial risk that exists when a financial transaction is denominated in a currency other than the base currency of the Trader-coins.