- The risk of loss in trading in Contracts can be substantial. You should therefore carefully consider whether that kind of trading is appropriate for you in the light of your financial circumstances. In deciding whether or not you will become involved in that kind of trading, you should be aware of the following matters:
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- • You could sustain a total loss of the Margin funds that you deposit with us to establish or maintain a position on the Derivatives Market, on a F&O Exchange or in relation to a Contract traded Off-Exchange.
- • In case the market price goes against your position, you could be required, in brief Notice, to deposit with us extra Margin funds to be able to keep your position. Those additional funds may be substantial. If you fail to provide those additional funds within the required time, your position may be liquidated at a loss and in that event you will be liable for any shortfall in your Account resulting from that failure.
- • Under certain conditions, it could become difficult or impossible for you to liquidate a position (this can, for example, happen when there is a significant change in prices over a short period).
- • The placing of contingent orders (such as a “stop-loss” or “stop price” order) may not always limit your losses to the amounts that you may want. Conditions may make it difficult to execute such orders.
- • A “spread” position is not necessarily less risky than a “long” or “short” position.
- • If you propose to trade in options, the maximum loss in buying an option is the amount of the premium, but the risks in selling an option are the same as in other Contracts.
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The risk of Short Selling of Securities is that the market could move against you and you could suffer loss as a consequence.
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Investment and trading in Securities can present risks that may impact on income and yield performance, and place capital at risk. You should be aware of these risks that may include (without limitation) market, company, industry and country exposure risk, and currency, economic and political risk. There are increased risks associated with borrowing to buy Securities or purchasing Securities that aren't offered on an Exchange.
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The Risk/Danger of equity investments Is It may not be Potential to recoup your initial investment where, as an instance, the sale Cost for the investment is significantly less than the cost paid, or your investment Cannot be sold (at which there isn't any market for the current market is efficiently Illiquid), or the business in which you've invested is insolvent or placed in receivership or liquidation.