Risk Disclosure.
FUTURES AND FOREX TRADING RISK DISCLOSURE STATEMENT
RISK DISCLOSURE:
Forex and Futures trading contains substantial risk and is not for
every investor. An investor could potentially lose all or more than
the initial investment. Risk capital is money that can be lost without
jeopardizing ones financial security or life style. Only risk capital
should be used for trading and only those with sufficient risk capital
should consider trading. Past performance is not necessarily
indicative of future results.
HYPOTHETICAL PERFORMANCE DISCLAIMER:
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME
OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY
ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO
THOSE SHOWN; IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN
HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY
ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF
HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED
WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES
NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN
COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK OF ACTUAL TRADING.
FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A
PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL
POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE
ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE
IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY
ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS
AND ALL WHICH CAN ADVERSELY AFFECT TRADING RESULTS.
PredicTrader has no financial interest in the outcome of your trades.
All purchasers of products referenced herein are encouraged to consult
with a licensed representative of his or her choice regarding any
particular trading strategy. No representation is being made that any
account will or is likely to achieve profits or losses similar to
those discussed herein. The past performance of any trading system or
methodology is not necessarily indicative of the future results of
that system. Trading requires placing money at risk in order to
potentially make a profit.
Do not risk any money you cannot afford to lose.
PredicTrader offers products and services which are intended for educational purposes only and not as individual investment advice. Do not act on these products and services without advice from your investment professional, who will aid you in determining what is suitable for your particular needs & circumstances. Failure to seek detailed, professional, personally tailored advice prior to acting could lead to your acting contrary to your own best interests, which in turn could lead to substantial losses of capital.
U.S. Government Required Disclaimer - Trading the markets on margin
carries a high level of risk, and may not be suitable for all
investors. The high degree of leverage can work against you as well as
for you. Before deciding to trade any market, you should carefully
consider your investment objectives, level of experience, and risk
appetite. The possibility exists that you could sustain a loss of some
or all of your initial investment and therefore you should not invest
money that you cannot afford to lose. You should be aware of all the
risks associated with trading, and seek advice from an independent
financial advisor if you have any doubts.
The following statement is furnished pursuant to Commodity Futures
Trading Commission (“CFTC”) Regulation 1.55(c).This brief statement
does not disclose all of the risks and other significant aspects of
trading in futures and options. 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 futures and
options is not suitable for many members of the public. You should
carefully consider whether trading is appropriate for you in light of
your experience, objectives, financial resources and other relevant
circumstances.
The risk of loss in trading commodity futures contracts can be
substantial. You should, therefore, carefully consider whether such
trading is suitable for you in light of your circumstances and
financial resources. You should be aware of the following points:
(1) You may sustain a total loss of the funds that you deposit with
your broker to establish or maintain a position in the commodity
futures market, and you may incur losses beyond these amounts. 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 required funds within the time required by your broker,
your position may be liquidated at a loss, and you will be liable for
any resulting deficit in your account.
(2) The funds you deposit with a futures commission merchant for
trading futures positions are not protected by insurance in the event
of the bankruptcy or insolvency of the futures commission merchant, or
in the event your funds are misappropriated.
(3) The funds you deposit with a futures commission merchant for
trading futures positions are not protected by the Securities Investor
Protection Corporation even if the futures commission merchant is
registered with the Securities and Exchange Commission as a broker or
dealer.
(4) The funds you deposit with a futures commission merchant are
generally not guaranteed or insured by a derivatives clearing
organization in the event of the bankruptcy or insolvency of the
futures commission merchant, or if the futures commission merchant is
otherwise unable to refund your funds. Certain derivatives clearing
organizations, however, may have programs that provide limited
insurance to customers. You should inquire of your futures commission
merchant whether your funds will be insured by a derivatives clearing
organization and you should understand the benefits and limitations of
such insurance programs.
(5) The funds you deposit with a futures commission merchant are not
held by the futures commission merchant in a separate account for your
individual benefit. Futures commission merchants commingle the funds
received from customers in one or more accounts and you may be exposed
to losses incurred by other customers if the futures commission
merchant does not have sufficient capital to cover such other
customers' trading losses.
(6) The funds you deposit with a futures commission merchant may be
invested by the futures commission merchant in certain types of
financial instruments that have been approved by the Commission for
the purpose of such investments. Permitted investments are listed in
Commission Regulation 1.25 and include: U.S. government securities;
municipal securities; money market mutual funds; and certain corporate
notes and bonds. The futures commission merchant may retain the
interest and other earnings realized from its investment of customer
funds. You should be familiar with the types of financial instruments
that a futures commission merchant may invest customer funds in.
(7) Futures commission merchants are permitted to deposit customer
funds with affiliated entities, such as affiliated banks, securities
brokers or dealers, or foreign brokers. You should inquire as to
whether your futures commission merchant deposits funds with
affiliates and assess whether such deposits by the futures commission
merchant with its affiliates increases the risks to your funds.
(8) You should consult your futures commission merchant concerning the
nature of the protections available to safeguard funds or property
deposited for your account.
(9) Under certain market conditions, you may find it difficult or
impossible to liquidate a position. This can occur, for example, when
the market reaches a daily price fluctuation limit (“limit move”).
(10) All futures positions involve risk, and a “spread” position may
not be less risky than an outright “long” or “short” position.
11) The high degree of leverage (gearing) that is often obtainable in
futures trading because of the small margin requirements can work
against you as well as for you. Leverage (gearing) can lead to large
losses as well as gains.
(12) In addition to the risks noted in the paragraphs enumerated
above, you should be familiar with the futures commission merchant you
select to entrust your funds for trading futures positions. Beginning
July 12, 2014, the Commodity Futures Trading Commission will require
each futures commission merchant to make publicly available on its Web
site firm specific disclosures and financial information to assist you
with your assessment and selection of a futures commission merchant.