Risk detection and warning
Risk detection aims to identify and evaluate the factors that may affect the achievement of institutional or investment objectives. After identifying these risks, the necessary warnings are taken to reduce their impact or avoid them completely.
Hazard Disclosure and Warning Notice
Contracts for Difference (hereinafter referred to as “CFDs”) are complex instruments that do not offer any capital protection or guaranteed return, while trading results are magnified due to the effect of leverage. Trading CFDs is not suitable for all investors; traders should ensure that they fully understand the product features and the risks involved before opening a trading account(s). Traders should ensure that they only trade amounts that they can afford to lose, while being aware of the risks of trading.
Risk detection scope
The Risk Disclosure and Warning Notice (hereinafter referred to as the “Risk Disclosure Document”) explains on a fair and non-misleading basis the general nature of the risks involved in dealing with CFDs. Clients should not begin trading in CFDs unless they understand the risks involved. It is important to note that the Risk Disclosure Document cannot contain all the risks and aspects of trading CFDs, nor how these risks relate to each Client’s personal circumstances. Clients need to ensure that their decision is made on an informed basis. Clients can seek independent professional advice before trading. This disclosure is provided for informational purposes and should not be treated as marketing material or any form of customer solicitation.
Main risks associated with CFD transactions
Credit and insolvency risks:
When trading CFDs, clients are effectively entering into an over-the-counter (OTC) transaction; this means that any open position with the Company cannot be closed with any other entity. OTC transactions may involve greater risks compared to transactions executed on regulated markets (such as traditional exchanges); this is due to the fact that in OTC transactions, there is no central counterparty and either party to the transaction bears some of the counterparty’s credit risk. The insolvency or default of the Company may result in the positions being liquidated or closed without the Client’s consent.
Market Risk
- CFDs are exposed to market events, such as the implementation of government, agricultural, commercial and trade programs and policies, national and international social, economic and political events, natural disasters, etc., which may significantly affect the price or availability of a particular underlying asset. Based on the basis of each contract, clients are exposed to different types of market risks such as interest rate risk, commodity risk, equity risk, foreign exchange risk, etc. Therefore, clients should carefully consider their investment objectives, level of knowledge and experience as well as their risk appetite before entering this market.
Volatility risks
Terrorist financing is the process by which legitimate companies and individuals provide financial support to terrorist activities or organizations for ideological, political or other reasons. Companies must therefore ensure that:
(1) customers are not terrorist organizations
(2) they do not provide the means by which terrorist organizations finance themselves.
Terrorist financing does not necessarily have to come from the proceeds of crime, but rather represents an attempt to conceal the source or intended use of funds that will later be used for criminal purposes.
Foreign Exchange / Currency Risk
Be aware of currency risks. It is possible to buy or sell CFDs in a currency different from the base currency of your account. In such cases, movements in foreign exchange rates may affect the profit or loss realised. Furthermore, clients face foreign exchange risks if they make payments in a currency different from the currency of their trading accounts.
Liquidity risk
Liquidity risk refers to the possibility that certain underlying assets may not be readily tradable or lack spot market liquidity within a given time frame, which may result in losses that are difficult to prevent or mitigate. In such cases, the bid-ask spread may become wider, making transactions more expensive.
Technical risks
Technical risks are an inherent aspect of online trading, including potential challenges arising from hardware and software failures, connectivity issues, power grid failures, hacker attacks, connection overloads, system malfunctions, and other technical factors that may affect order execution and overall trading performance. Traders should use reliable technology and anti-virus software, and maintain a stable internet connection. In addition, they should have effective trading strategies to manage risks and stay up to date with platform updates and have contingency plans in place for technical failures. Traders should refrain from sharing login credentials and should use strong, unique passwords.
Trading platforms
All client instructions are sent to our server and executed in order. Therefore, clients cannot send a second order until the previous order is executed. If the second order is received before the first is processed, the second order will be rejected. Clients are responsible for any unplanned trade that may be executed if they resubmit an order before they are notified of the results of the first order. Clients should understand that closing the order window or the position window does not cancel the order submitted. Clients acknowledge that only quotes received from our server are correct. If there is a problem with the communication between the client terminal and our server, the client can retrieve undelivered quotes from the client terminal’s quotes database.
Contact
There is a risk that a customer will miss important communications if their communication channels are not up to date or are not working properly. It is important for the customer to ensure that their contact information is up to date and reliable to avoid any potential communication gaps and the consequences associated with them.
Abnormal Market Conditions - Trading Suspension
Under certain trading conditions, it may be difficult or impossible to execute or liquidate a position, or the period during which clients’ orders are executed may be extended. This may occur, for example, during times of rapid price movement, when prices rise or fall in a single trading session to such an extent that trading may be suspended or restricted.
Placing a Stop Loss order will not necessarily eliminate Clients’ losses in the intended amounts, because market conditions may make it impossible to execute such an order at the specified price. In addition, under certain market conditions, the price at which a Stop Loss order is executed may be worse than the stipulated price and the realized losses may be greater than expected.
Force Majeure Events
The Company is not liable for financial losses resulting from force majeure events. These events are extreme and unavoidable circumstances that are independent of the will and actions of the participants in the agreement, and cannot be predicted, prevented or eliminated, including but not limited to natural disasters, fires, accidents, man-made disasters, emergencies in utility works and utility lines, DDOS attacks, riots, military actions, terrorist attacks, uprisings, civil unrest, strikes, and regulatory actions of state and local government authorities.
Slipping
Slippage is a phenomenon in which the requested price decreases, i.e. the order is opened at a different price than the requested price. It refers to the difference between the expected price of the trade and the price at which the trade is executed. Slippage can occur at any time, but is most common during periods of high volatility. Slippage does not indicate a negative or positive movement because any difference between the final execution price versus the intended execution price is classified as intended slippage and the actual execution price is considered slippage. It can be positive, no slippage, or negative slippage. A market order may be executed at a lower or more favorable price than the originally intended price when this occurs.
Risks Associated with Individual Government Laws
Clients are responsible for trading and non-trading transactions conducted within countries where they are restricted or prohibited by law.
Third Party Risks
The Company may deposit Client funds with a third party. Although the Company must exercise skill, care and due diligence in selecting such party, it is understood that there are circumstances beyond the control of the Company and therefore the Company does not accept any liability or responsibility for any losses resulting from the Client as a result of the insolvency or other similar proceedings or failure of such third parties.
Margin Requirements
Clients must maintain the minimum margin requirements on their open positions at all times. It is the responsibility of clients to monitor their account balances and ensure that there are sufficient funds to cover their trading strategy and the minimum margin requirements. Failure to do so may result in the liquidation of positions in the client’s trading account. Clients should not rely on last minute deposits.
Basic asset rights
CFDs do not provide any rights to the underlying instruments.
Tax collection
Clients should seek independent tax advice, if necessary, to determine whether they are subject to any tax, including stamp duty.
Identity theft risk
There may be instances of fraudulent impersonation of Company officials and representatives. Clients should not share their personal data, including information relating to their trading accounts, with persons who appear to represent the Company unless they are certain that these persons are communicating through the Company’s official contact details and domains. If you have any questions regarding the content of this document and the features of our products, you may contact our Customer Support at: Before deciding to trade, you should carefully consider your financial situation, objectives and needs, and seek independent financial, legal, tax and/or other professional advice. If you have any questions about any of the risks involved in trading, you should consult your own legal, tax and other financial advisors before entering into any particular transaction with the Company.