Table of contents
1. Effect of “Leverage”
2. Highly Volatile Instruments
3. Technical Risk
4. Abnormal Market Conditions
5. Trading Platform
6. Communications
7. Force Majeure
8. Statutory Prohibitions and Restrictionsm
This document is a disclosure by Advantage markets (“Company”), which provides the Advantage service to the Client under the terms and conditions of the Client Agreement, of the potential risks involved in trading on financial markets. The Client should first and foremost be aware of the potential losses associated with this activity. However, due to the wide range of possible scenarios, this document cannot disclose all risks inherent in trading on financial markets. The terms used in this document have the same meaning as defined in the corresponding Regulations which consists of all the documents located in the “Documents” section of Advantage and on the Company’s website.
1. Effect of “Leverage”
1.1. When executing trading operations under margin trading conditions, even small market movements may have great impact on a Client’s trading account due to the effect of leverage. The Client must consider that if the trend on the market is against them, the Client may sustain a total loss of their initial margin and any additional funds deposited to maintain open positions. The Client shall hold full responsibility for all risks, financial resources used and the chosen trading strategy.
1.2. We highly recommend to maintain a Margin Level no lower than 1,000 per cent, as well as to limit potential loss by placing Stop Loss orders.
2. Highly Volatile Instruments
2.1. Many instruments are traded within wide ranges of intraday price swings, so the Client must consider the fact that there is high probability of loss as well as probability of profit.
3. Technical Risk
3.1. The Client shall assume the risk of financial loss caused by the failure of information, communication, electronic and other systems.
3.2. When executing trading operations through the client terminal, the Client shall assume the risk of financial loss, which can be caused by:
the failure of Client hardware, software and internet connection;
the improper operation of Client equipment;
the wrong settings in the client terminal;
delayed client terminal updates;
the Client’s ignorance of the applicable rules.
3.3. The Client acknowledges that at the moment of peak load there may be some difficulties in getting communication with the duty operator, especially on the fast market (for example, when key economic indicators are released).
4. Abnormal Market Conditions
4.1. The Client shall acknowledge that under abnormal market conditions, the execution time for Client instructions may increase.
5. Trading Platform
5.1. The Client shall acknowledge that only one request or instruction is allowed in the queue. Once the Client has sent a request or instruction, any other request or instruction sent by the Client will be ignored.
5.2. The Client shall acknowledge that when the Client closes the window to place/modify/delete an order, as well as the window to open/close a position, the instruction or request which has been sent to the server will not be cancelled.
5.3. The Client shall assume the risk of executing unplanned transactions in the case that the Client sends another instruction before receiving the result from the instruction sent previously.
6. Communications
6.1. The Client shall assume the risk of any financial loss caused by the Client either not receiving a notification from the Company.
6.2. The Client shall acknowledge that unencrypted information transmitted by email is not protected from unauthorized access.
6.3. The Client shall agree that the Company have the right to delete messages sent to the Client through internal mail 3 (three) days after they have been sent, despite the fact that the Client may not have received them yet.
6.4. The Client shall hold full responsibility for the safekeeping of information received from the Company and assumes the risk of any financial loss caused by unauthorized access to the Client’s trading account by a third party.
7. Force Majeure
7.1. The Client shall assume all risks of financial loss caused by a force majeure.
8. Statutory Prohibitions and Restrictions
8.1. The Client shall assume all financial and other risks when completing operations (or actions connected with these operations) on financial markets that are statutorily prohibited or restricted by the legislation of the country in which the Client is resident.
