All Clients and potential Clients must carefully study this risk disclosure before completing registration on the Website or on the trading terminal and before they start making trades.
The purpose of this Risk Disclosure (hereinafter Disclosure) is to disclose to the Client information about the risks associated with transactions on financial markets in general and with binary options in particular and to warn the Client about possible financial losses and related risks. The list of risks given in this Disclosure is not exhaustive because of the variety of possible situations that arise during transactions. This disclosure is for information purposes. It is meant to provide a general explanation of the risks associated with binary options.
1. The Client acknowledges that binary option transactions are speculative and extremely risky investments and are suitable only for those investors who:
- Understand and are prepared to assume economic, legal, and other risks,
- Taking into account their financial position, financial resources, and obligations can afford the risk of losing what they invest,
- Have sufficient knowledge to understand what binary options trades are. The Company does not provide a Client with any recommendations or advice regarding binary options and does not give investment recommendations of any kind. The Client himself/herself makes the decision on a trading strategy and on specific actions based either on his/her understanding of the market or on consultations with independent financial advisers not affiliated with the Company. Binary options are derivative financial instruments, the price of which is derived from the prices of the underlying assets/markets to which they are linked (e.g., currency, stock indices, stocks, metals, futures, etc.). For this reason, it is extremely important that the client understand the risks associated with trading in the appropriate underlying asset/market. Some of these risks are: -Volatility– movements in the underlying asset/market price can be unstable and unpredictable. This fact has a direct impact on the Client’s financial results. Understanding market volatility allows the Client to analyze potential profits and work out a trading strategy. – Market fluctuations – a sudden change in the price of the underlying asset from one level to another. Various factors may cause abrupt changes (e.g., economic events or market announcements). These factors may occur both when the market is open or when it is closed. When these factors exist at the market close, the price for the underlying asset affected by that factor at the market opening may considerably differ from the price for the underlying asset at the market close. It may be impossible to close an open position at a beneficial price. This may result both in considerable losses and in considerable profit.
- Liquidity: the value of binary options may depend on a number of factors, including, but not limited to, a change in the ratio of supply-and-demand; government, agricultural, commercial, and trading programs and strategies; national and international political and economic events; and the prevailing psychological mood in the relevant market. Market conditions may change considerably within a very short period of time and, consequently, in some markets, it may be impossible for the Client to make the anticipated profit.
2. The Company will not advise the Client regarding the profitability of a particular trade or make investment recommendations in any form. The company provides analytical and statistical information. The client will, on his/her own, and his/her own peril and risk, execute trades and make the relevant decisions on the basis of his/her own judgment. By sending a trade order to the Company, the Client confirms that he/she is fully responsible for his/her own independent assessment and investigation of the risks of the trade. The Client confirms that he/she has sufficient knowledge of the market, has received professional consulting as needed, and has the necessary experience to make his/her own assessment of the merits and risks of any trade. In view of the above, the Company recommends that the Client carefully consider whether the risks of a transaction are acceptable in relation to the Client’s goals and financial capabilities. This Disclosure is not intended to induce the Client to refrain from trading (binary options trading) but is intended to help the Client assess the risks associated with these transactions and responsibly decide on a strategy within the framework of the performance of the Agreement with the Company.
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