Risk Disclosure Statement
THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. IN CONSIDERING WHETHER TO TRADE OR TO AUTHORIZE SOMEONE ELSE TO TRADE FOR YOU, YOU SHOULD BE AWARE OF THE FOLLOWING: IF YOU PURCHASE A COMMODITY OPTION YOU MAY SUSTAIN A TOTAL LOSS OF THE PREMIUM AND OF ALL TRANSACTION COSTS. IF YOU PURCHASE OR SELL A COMMODITY FUTURE OR SELL A COMMODITY OPTION YOU MAY SUSTAIN A TOTAL LOSS OF THE INITIAL MARGIN FUNDS AND ANY ADDITIONAL FUNDS THAT YOU DEPOSIT WITH YOUR BROKER TO ESTABLISH OR MAINTAIN YOUR POSITION. IF THE MARKET MOVES AGAINST YOUR POSITION, YOU MAY BE CALLED UPON BY YOUR BROKER TO DEPOSIT A SUBSTANTIAL AMOUNT OF ADDITIONAL MARGIN FUNDS, ON SHORT NOTICE, IN ORDER TO MAINTAIN YOUR POSITION. IF YOU DO NOT PROVIDE THE REQUESTED FUNDS WITHIN THE PRESCRIBED TIME, YOUR POSITION MAY BE LIQUIDATED AT A LOSS, AND YOU WILL BE LIABLE FOR ANY RESULTING DEFICIT IN YOUR ACCOUNT. UNDER CERTAIN MARKET CONDITIONS, YOU MAY FIND IT DIFFICULT OR IMPOSSIBLE TO LIQUIDATE A POSITION. THIS CAN OCCUR, FOR EXAMPLE, WHEN THE MARKET MAKES A “LIMIT MOVE.” THE PLACEMENT OF CONTINGENT ORDERS BY YOU OR YOUR TRADING ADVISOR, SUCH AS A “STOP-LOSS” OR “STOP-LIMIT” ORDER, WILL NOT NECESSARILY LIMIT YOUR LOSSES TO THE INTENDED AMOUNTS, SINCE MARKET CONDITIONS MAY MAKE IT IMPOSSIBLE TO EXECUTE SUCH ORDERS. A “SPREAD” POSITION MAY NOT BE LESS RISKY THAN A SIMPLE “LONG” OR “SHORT” POSITION. THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS.
THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND OTHER SIGNIFICANT ASPECTS OF THE COMMODITY MARKETS. YOU SHOULD THEREFORE CAREFULLY STUDY COMMODITY TRADING BEFORE YOU TRADE, AND DETERMINE IF COMMODITY TRADING IS APPROPRIATE FOR YOU.
Risk Warning
The risk of loss when trading goods can be significant. Therefore, you should carefully consider whether this type of activity is suitable for you in light of your financial condition.. When considering TRADING or allowing someone else to trade for you, you should know the following: if you buy the PRODUCT option, you may incur a loss in the amount of PREMIUM AND of all operating costs. IF YOU BUY OR SELL FUTURE PRODUCT OR SELL PRODUCT option, you may incur a loss in the amount of the initial deposit and any additional funds, which you contribute with your broker to create or save your position. If the market moves against your position, you may be called upon by your broker Deposit significant additional margin, in short time, in order to maintain their position. IF you do not provide the requested funds within the specified time period, your position can be liquidated at a loss, and you will be responsible for any resulting deficit in your account. Under certain market conditions, you may find it difficult or impossible to liquidate a position. It can happen, for example, when the market does “ MOVE LIMIT.”PLACING orders by you or your advisor, such as “”stop-loss or “ stop limit”to order , will not necessarily limit your losses, ASSIGNED AMOUNTS, As market conditions may make it impossible to fulfill such orders. “ DISTRIBUTION”position could not be less risky, than just “ LONG”or “ short position”. High shoulder level, which often get in the commodity trade can work against you, so as for you. Using borrowed funds can lead to large losses, since profit.
This concise statement cannot disclose all risks and other important aspects of the commodity markets.. Therefore, you should carefully study commodity trading BEFORE TRADING, and define, if commodity trading is right for you.
