This brief statement
does not disclose all of the risks and other significant
aspects of trading in derivates. In light of the risks,
you should undertake such transactions only if you understand
the nature of the contracts (and contractual relationships)
into which you are entering and the extent of your exposure
to risk. Trading in derivatives is not suitable for
many members of the public. You should carefully consider
whether trading is appropriate for you in the light
of your experience, objectives, financial resources
and other relevant circumstances. It is advisable to
seek independent advice, if necessary.
inherent concept of Derivatives means that they are
not suitable for an investor seeking an income from
his investments because the income from such investments
may fluctuate in value in money terms. For an investment
in an OTC product, which is not a readily realisable
investment, it may be difficult to sell or realise the
investment and obtain reliable information about its
value or the extent of the risks to which it is exposed.
profit or loss in transactions in foreign currency-denominated
contracts will be affected by fluctuations in currency
rates where there is a need to convert from the currency
denomination of the contract to another currency.
in derivatives carry a high degree of risk. The amount
of initial margin is small relative to the value of
derivates contract so that transactions are “leveraged”
or “geared”. A relatively small market movement
will have a proportionately larger impact on the funds
you have deposited or will have to deposit. This may
work against you as well as for you. You may sustain
a total loss of initial margin funds and any additional
funds deposited to maintain your position. If the market
moves against your position or margin levels are increased,
you may be called upon to pay substantial additional
funds on short notice to maintain your position.
placing of certain orders (e.g. “stop-loss”
orders), which are intended to limit losses to certain
amounts may not be effective because market conditions
may make it impossible to execute such orders.
you begin to trade, you should obtain a clear explanation
of all commission, fees and other charges for which
you will be liable. These charges will affect your net
profit (if any) or increase your loss.
on an electronic trading system may differ not only
from trading in a traditional market but also from trading
on other electronic trading systems. If you undertake
transactions on an electronic trading system, you will
be exposed to risks associated with the system including
the failure of hardware and software. The result of
any system failure may be that your order is either
not executed according to your instructions or is not
executed at all.
views and statements in this website are believed to
be accurate and in so far as it is possible are given
without responsibility for any inaccuracy or omission
of fact or opinion of any value whatsoever on the part
of Orient Financial Brokers.