Risk
Disclosure Statement
The risk of
loss in trading futures or derivatives 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
or sell a commodity future, 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.
-
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 our broker's disclosure document
before trade, including the description of the principal risk factors of
the investment. |
