High-risk investment warning
Leveraged products are complex and carry a high risk of losing money rapidly. You should not trade with money required for living expenses, emergencies or other essential commitments, and you should not assume that any strategy, tool or stop order guarantees a limited loss.
01Purpose and scope of this disclosure
This disclosure summarises material risks that may arise when trading leveraged forex, CFDs, metals, commodities, indices, shares or cryptocurrency-related instruments. It is not exhaustive, and additional product, jurisdiction, account-group or symbol-specific risks may apply.
You should read this document together with the client agreement, order-execution terms, margin and stop-out rules, symbol specifications, fee schedule and any product disclosure provided for your account. If you do not understand a product or cannot afford the potential loss, you should not trade it.
02Leverage, margin and amplified loss
Leverage allows a position with a larger notional value to be opened using a smaller amount of margin. This increases market exposure relative to the funds committed. The same leverage that can increase a gain can increase a loss at equal speed.
Required margin may change because of price movement, position size, instrument, account group, currency conversion, volatility or a change in trading conditions. Free margin can fall quickly, especially when several correlated positions move against you at the same time.
A position may be closed automatically when margin or stop-out thresholds are reached. Automatic closure does not guarantee that the account will be protected from every additional loss, particularly during gaps or disorderly markets.
03Margin calls, liquidation and negative balances
The platform may display a margin level and may issue a warning when available resources decline. You must not rely on receiving or responding to a margin-call notification before positions are closed. Technical, market or communication conditions may prevent a warning from being delivered or acted upon.
When the stop-out threshold is reached, one or more positions may be closed without further consent. The order of closure may be determined by platform or account rules. A gap or lack of liquidity may cause execution at a price worse than the level shown before closure.
Do not assume negative-balance protection applies unless it is expressly stated in the documents governing your account. Where such protection is not required or is unavailable, a loss may exceed the cash initially deposited and create an amount due.
04Volatility, gaps and discontinuous pricing
Prices can change rapidly because of economic data, central-bank decisions, political events, company announcements, market rumours, natural disasters, cyber incidents or changes in liquidity. A market may reopen at a materially different price after a closure or interruption.
During a gap, there may be no executable price between the previous and next available quotation. A stop-loss, take-profit or pending order may therefore be filled at the first available price rather than the requested level.
05Liquidity, execution and slippage risk
An instrument may have fewer willing buyers or sellers at certain times. Reduced liquidity can widen spreads, increase slippage, delay execution, limit available volume or make it difficult to close a position at a desired price.
Orders may be rejected, partially filled, requoted, delayed or executed at a different price because of market movement, available liquidity, order size, trading-session status, price validation, technical limits or risk controls. Execution quality can differ between normal and stressed conditions.
06Stop, limit and pending-order risk
Order types are instructions subject to market availability and platform rules. A stop order usually becomes executable when a trigger is reached but does not guarantee the trigger price. A limit order may not execute if sufficient liquidity is unavailable at the specified price.
Trailing stops, expert-adviser instructions and orders stored locally may depend on the platform, device or internet connection remaining active. You should understand whether an instruction is held on the trading server or only on your device.
07Spreads, commission, swap and other costs
Trading results are affected by the bid-ask spread, commission, overnight financing or swap, currency conversion, data or platform charges and any other fee stated in the account conditions. Costs may increase during volatile or illiquid periods.
Holding a position for a longer period can cause financing costs to accumulate. A profitable market direction can still produce a net loss if trading and financing costs exceed the gross gain. Rates and triple-swap or holiday adjustments may change according to instrument and market convention.
08Account-currency and conversion risk
When an instrument, profit, loss, fee or funding method uses a currency different from the account base currency, a conversion is required. Changes in the conversion rate can increase or reduce the final account result independently of the underlying trade.
Deposits and withdrawals may also be subject to payment-provider exchange rates, charges or intermediary-bank deductions. The amount credited or received may differ from the amount originally sent.
09Platform, internet and cybersecurity risk
Trading and account services depend on software, networks, data feeds, servers, APIs, devices, power and telecommunications. Failures or delays can affect login, prices, order submission, confirmations, account displays and support communications.
A device may be compromised by malware, phishing, credential theft or unauthorised remote access. You are responsible for using a secure device, protecting account access, checking confirmations and reporting suspicious activity promptly.
- Maintain a stable internet connection and an alternative method of contacting support where practical.
- Keep operating systems, browsers and trading software updated from trusted sources.
- Verify website addresses and do not follow unexpected requests to disclose access codes or install remote-control software.
- Review account statements and order history for discrepancies.
- Do not rely on a single device, alert, chart or internet connection for critical risk management.
10Expert advisers, algorithms and copy-trading risk
Automated strategies, expert advisers, signals and copy-trading tools can contain coding errors, unsuitable assumptions, delayed inputs or excessive risk settings. A strategy that performed well in a backtest or previous market environment may fail in live conditions.
You remain responsible for monitoring automated activity, position size, leverage, connectivity and account losses. The availability of a tool or strategy through a platform does not constitute approval, suitability assessment or a performance guarantee.
11Risks specific to different market categories
| Market | Examples of additional risk |
|---|---|
| Forex | Central-bank intervention, interest-rate changes, political events, rollover conventions and sudden liquidity reductions. |
| Indices | Concentration in large constituents, cash-market closures, futures rollover, dividend adjustments and regional trading hours. |
| Shares | Company announcements, suspensions, corporate actions, dividend adjustments, earnings gaps and borrow constraints. |
| Commodities and energy | Storage, weather, geopolitics, production decisions, contract expiry, rollover and sharp supply-demand changes. |
| Precious metals | Safe-haven flows, interest rates, currency movement, liquidity changes and significant overnight gaps. |
| Cryptocurrency-related instruments | Extreme volatility, fragmented liquidity, regulatory change, weekend trading conditions, technology incidents and rapid price gaps. |
12Counterparty, regulatory and legal risk
A leveraged derivative is a contractual claim rather than ownership of the underlying asset. Your rights depend on the contracting entity, client-money arrangements, insolvency law, account classification and applicable regulation.
Law, regulation, tax treatment, product availability, leverage limits and market access can change. A change may require positions to be restricted, closed, transferred or treated differently. Tax consequences depend on personal circumstances and jurisdiction, and you should obtain independent advice.
13Market information, education and third-party material
News, analysis, calculators, educational material and third-party commentary can be incomplete, delayed, inaccurate or unsuitable for your circumstances. Opinions may change without notice and may conflict with other sources.
You should independently verify information used for a trading decision. Social-media posts, influencers, signal sellers and unverified claims can create additional fraud and manipulation risk.
14Demo accounts, simulations and past performance
A demo account or simulation may not reproduce live liquidity, slippage, emotional pressure, financing costs, execution priority, partial fills or technical conditions. Results achieved in a simulated environment should not be treated as evidence of likely live results.
Past performance, hypothetical results and historical correlations are not reliable indicators of future outcomes. Market structure and volatility can change suddenly.
15Assessing whether trading is appropriate
Before trading, consider whether you understand how the product is priced, how margin and stop-out work, the maximum realistic loss, the effect of costs and the steps available if technology fails.
- Assess your knowledge and practical experience with leveraged products.
- Define a maximum loss that does not affect essential financial commitments.
- Understand the instrument, trading hours, contract size, tick value, spread, swap and margin requirement.
- Use position sizing and leverage consistent with your loss capacity rather than only your expected return.
- Plan how positions will be monitored during volatility, market closures and technical disruption.
- Seek independent financial, legal or tax advice where you do not understand the consequences.
16Client acknowledgement
By proceeding with a leveraged trading service, you acknowledge that you have had the opportunity to review this disclosure and the account-specific documents, that profits are not guaranteed, and that you may lose a substantial part or all of the money committed to trading.
You also acknowledge that risk controls reduce but do not eliminate risk, and that you remain responsible for monitoring your account, maintaining sufficient margin and making independent trading decisions.
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