The purpose of the Risk Disclosure Statement (“the Statement”) is to provide the Client appropriate guidance on the nature and risks of the specific types of financial instruments offered by Lead Capital Markets Limited (hereafter the “Company”).
The Client acknowledges, understands and agrees with the risks, disclosed below.
Trading is very speculative and risky. Contracts for Difference (‘CFDs’) are complex financial products, most of which have no set maturity date. Therefore, a CFD position matures on the date you choose to close an existing open position. CFDs, which are leveraged products, incur a high level of risk and can result in the loss of all of your invested capital. Trading in CFDs is highly speculative and therefore is suitable only for those Clients who (a) understand and are willing to assume the economic, legal and other risks involved, (b) are financially able to assume the risk of losses up to their invested capital and (c) understand and are knowledgeable about CFDs and the underlying assets. The Client represents, warrants and agrees that he/she understands these risks, is willing and able, financially and otherwise, to assume the risks of trading in CFDs. Before deciding to trade, a client should ensure that he understands the risks involved and take into account his level of experience, and if necessary seek independent advice. The Client is responsible for all the losses suffered in his account. Consequently, the Client should be prepared to lose all the invested capital.
Risks Associated with Transactions in CFDs When trading in CFDs you need to take into account the following main risks:
CFDs are leveraged products; therefore, they carry a higher level of risk to your capital compared to other financial products and may result in the loss of all of your invested capital. However, it should be noted that the Company operates on a ‘negative balance protection’ basis; this means that you cannot lose more than your initial investment.
The value of CFDs may increase or decrease depending on market conditions, and the potential for profit should be balanced alongside the significant losses that may be generated over a very short period of time when trading CFDs.
The Client needs to make sure that he has sufficient margin in his trading account, at all times, in order to maintain an open position. In addition, the Client needs to continuously monitor any open positions in order to avoid positions being closed due to the unavailability of funds; it should be noted that the Company is not responsible for notifying you for any such instances.
Prices are set by the Company and may be different from prices reported elsewhere. The Company will provide the prices to be used in trading and valuation of the Client’s positions in accordance with its Trading Policies and Procedures. As such, they may not directly correspond to real time market levels at the point in time at which the sale of options occurs.
A. Technical Risks
• Internet Trading. When the Client trades online (via the internet), the Company shall not be liable for any claims, losses, damages, costs or expenses, caused, directly or indirectly, by any malfunction or failure of any transmission, communication system, computer facility or trading software, whether belonging to the Company, the Client, any exchange or any settlement or clearing system.
• Telephone Orders. The Company is not responsible for disruption, failure or malfunction of telephone facilities and does not guarantee its telephone availability. For the avoidance of doubt, the Client is aware that the Company may not be reachable by telephone at all times.
• The Company bears no responsibility for any loss that arises as a result of delayed or non-received communication sent to the Client by the Company.
• The Company bears no responsibility for any loss that arises as a result of encrypted information sent to the Client by the Company that has been accessed via unauthorised means.
• The Company bears no responsibility for any non-received or unread internal messages sent to the Client through the trading platform(s); in case a message is not received or read within 3 (three) calendar days, the message gets automatically deleted.
• The Client is solely responsible for the privacy of any information contained within the communication received by the Company.
• The Company has no responsibility regarding any loss as a result of authorized/unauthorised access to all information between the Company and the Client by third persons.
In case of a Force Majeure Event the Client shall accept the risk of any loss arising.
I / WE HAVE READ, UNDERSTOOD AND AGREE TO THE RISK DISCLOSURE STATEMENT AND THE TRADING POLICIES AND PROCEDURES SET OUT ABOVE.