Warnings and Risk Disclosure

Risk Disclosure Notice

www.trades.com

This Risk disclosure notice, which is an integral part to the Agreement (“Agreement”), is provided to you (our Client and prospective Client) in compliance to the provision of services, activities, the operation as subsequently amended from time to time.

This notice provides you with information about the risks associated with investment products, which you may invest in through services provided on www.trades.com.

CFDs are high risk financial products, which are not appropriate for many members of the public. All financial investments involve an element of risk. The value of your investment may fall as well as rise and you may get back less than your initial investment. With CFDs your losses may exceed your deposits. It is therefore possible for you to owe additional money to Us.

CFDs are a type of transaction the purpose of which is to secure a profit or avoid a loss by reference to fluctuations in the value or price of an underlying instrument. Types of CFDs include but are not limited to, Foreign Exchange CFDs, Futures CFDs, Option CFDs, Share CFDs and Stock Index CFDs. CFDs can only be settled in cash.

Investing in a CFD carries a high degree of risk because the ‘gearing’ or ‘leverage’ often obtainable means that a relatively small movement in the market can lead to a proportionately much larger movement in the value of your investment and this can work against you, as well as for you. You may need to provide further funds with little or no notice. It is possible to lose more money than you have deposited into the account.

NO ADVICE

Our services are provided on an execution only basis. We do not provide investment advice in relation to CFDs. All we provideis factual information or research about a market, information about transaction procedures and information about the potential risks involved and how those risks may be minimised. However, any decision to use our products or services is made by you.

You are responsible for managing your tax and legal affairs including making any regulatory filings and payments and complying with applicable laws and regulations. We do not provide any regulatory, tax or legal advice. If you are in any doubt as to the tax treatment or liabilities of investment products available through your CFD Account, you should seek independent advice.

CFDs – GENERAL RISKS

Any decision to open an account and to use our products or services is yours. It is your responsibility to understand the risks involved with our products or services. It is up to you to assess whether your financial resources are adequate for your financial activity with us and your risk appetite in the products and services you use

CFDs are not listed on any exchange. The prices and other conditions are set by us in accordance with our obligation to provide best execution as set out in our order execution policy, to act reasonably and in accordance with the applicable Agreement. Each CFD you open with us results in you entering into a Agreement with us.

GENERAL TRADING RISKS

It is important that you understand the risks associated with trading in the relevant underlying market because fluctuations in the price of the market will affect your instruments and the profitability of your trades. CFDs are financial products that allow you to speculate on price movements in markets and although the prices at which you trade these products are set by us, our prices are derived from the market.

PAST PERFORMANCE

Past performance is not an indication of future performance. The value of investments can go down as well as up.

VOLATILITY

Movements in the price of markets can be volatile. This will have a direct impact on your profits and losses. Knowing the volatility of an market will help guide you as to where any Stops should be placed. It should be noted that volatility can be unexpected and unpredictable.

MARKET LIQUIDITY

Market conditions can change significantly in a very short period of time, so that if you wish to sell an instrument or close a Contract, you may not be able to do so under the same terms as when you purchased or opened it. 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 trading is suspended or restricted.

TECHNICAL RISKS

You, and not we shall be responsible for the risks of financial losses caused by failure, malfunction, interruption, disconnection or malicious actions of information, communication, electricity, electronic or other systems. We have no responsibility if unauthorized third persons gain access to your information, including electronic addresses, electronic communication and personal data, access data when this is due to the your’s negligence or when the above are transmitted between the us and you, or any other party, using the internet or other network communication facilities, telephone, or any other electronic means or post.    

 

GEARING AND LEVERAGE

Before you are allowed to enter into a Agreement with us, you will generally be required to deposit money with us – this is called the margin requirement. This margin requirement will usually be a relatively modest proportion of the overall Contract value. This means that you will be using ‘leverage’ or ‘gearing’ and this can work for or against you; a small price movement in your favour can result in a high return on the margin requirement placed for the Contract, but a small price movement against you may result in substantial losses. At all times during which you have open positions, you must ensure that your account balance, taking into account all running profits and losses, is equal to at least the total margin requirement that we require you to have deposited with us. Therefore, if our price moves against you, you may need to provide us with significant additional funds immediately to meet your margin requirement and maintain your open positions. If you do not do this, we will be entitled to close one or more or all of your positions. You will be responsible for any losses incurred as a result. You should also be aware that under the applicable Customer Agreement we are entitled to increase margin rates at short notice. If we do so, you may be required to deposit additional funds into your account to cover the increased margin rates. The value of CFDs will rise and fall.

NEED TO MONITOR POSITIONS

 It is important that you monitor all of your positions closely. It is your responsibility to monitor your positions and during the period that you have any open Transactions, you should always have the ability to access your Accounts.

This statement cannot disclose all risks of investments Contracts For Differences. They are not suitable for many members of the public and you should carefully study such investments before you commit funds to them.