1. The purpose of this alert – to provide a wide range of stakeholders overall, but perhaps more complete information about the risks that may arise in connection with the transactions of financial markets, as well as to warn about possible losses (losses) on transactions in financial instruments.
  2. Investment activity of financial market instruments, has high degree of risk, as it involves transactions with leverage and may result in the loss of not only the expected return on the invested funds, but also to the loss of invested funds.For the purposes of this Notice at risk in the implementation of financial instruments shall mean the possibility of an event entailing or capable to lead to a loss of revenue, or loss of client assets invested.
  3. This Notice is not intended to force the client to abandon the implementation of financial instruments, and to help customers understand and assess the risks associated with investing in these financial instruments and a responsible approach to make informed investment decisions.
  4. Trading on financial markets involves certain risks, and non-trade trade. Risk Classification can be done in different ways, in particular as listed below:
  5.  BY SOURCES OF: o systemic risk – the risk associated with operation of the system as a whole and is not associated with a specific financial instrument. The main systemic risks include political risk, the risk of adverse (from the point of view of the business environment) changes in legislation, macroeconomic risks (sharp devaluation of the national currency, the market for government debt crisis, banking crisis, currency crisis, etc.). Systemic risks include the risks of force majeure. o unsystematic (individual) risk – the risk of a particular member of the financial market: the investor, forex company, trustee, or other trading system.
  6. ON RISK FACTORS: o economic risk – the risk of adverse events of an economic nature. Probability of economic risk is generally higher than the system. There are the following types of economic risks: price risk – the risk of loss from adverse price changes. A number of tools have significant intraday time ranges of price changes, which implies a high probability of getting from trading as a profit and loss; ! currency risk – the risk of loss from adverse changes in exchange rates; ! Interest rate risk – the risk of loss due to adverse changes in interest rates; ! inflation risk – the risk of loss of purchasing power of money; ! Liquidity risk – the possibility of difficulties with the buying or selling a financial instrument at a certain time, which may also lead to an increase in the size of the spread. Large spread significantly complicates the use of limit stops, exposed to limit the extent of losses at the opening position (stop-loss). In order to avoid serious losses to the Client will have to constantly monitor the situation on the financial market and to exercise reasonable activity in the management of their positions; o Legal risk – the risk of legislative changes (legislative risk) – the possibility of losses with the emergence of new or change (cancellation) of the existing legislation, including tax.Legislative risk includes the possibility of losses due to the lack of legal acts regulating the activities of the financial market, and in particular on the Forex market; o socio-political – the risk of radical changes in the political and economic situation, the risk of social unrest, including strikes, the risk of the outbreak of hostilities; o the criminal – the risks associated with the illegal actions of third parties, eg such as fraud, unauthorized access to computer systems and confidential information, etc .; o Operating (technical, technological, human resources) – the risk of direct or indirect loss! caused by the failure of information, communication, electronic, electrical and other systems, or! due to errors related to the imperfection of the market infrastructure, including operations technology, management procedures and accounting controls, or! because of the actions (or inaction) of the staff. So, when working with a client terminal may not function properly due to the malfunction of hardware and software failures, incorrect settings, an older version of the software or of poor quality of communication on the client side. At the moment of peak load (for example, when the economic news) The client must be aware of the possibility of overloading the communication channel and limit the possibility to contact by phone with a broker. o natural – risk that is independent of human activity (natural disaster risks: earthquake, flood, hurricane, typhoon, lightning, etc.). o man-made – the risk generated by human activities: accidents, fires, etc.
  7. ON ECONOMIC CONSEQUENCES FOR THE CLIENT: o the risk of loss of income – the possibility of occurrence of an event that involves the partial or complete loss of expected income from investments; o the risk of losing the invested funds – the possibility of occurrence of an event that involves the partial or complete loss of funds invested;
  8. IN CONNECTION WITH THE CLIENT source of risk: o immediate risk – the risk source is directly connected to any relationship with the client; o indirect risk – the possibility of occurrence of adverse events to the Customer at the source, not connected directly with the client, but entailing a chain of events that ultimately lead to the loss of the Client.
  9. In transactions by the Customer the following additional specific types of risks: o Transactions with financial instruments are characterized by high risk, because due to the leverage effect of the relatively small market movements can have a significant impact on the Customer’s trading account. o If there is a situation unfavorable for busy customers in this market position, it is likely in a relatively short period of time to incur a loss of initial margin funds and any additional funds deposited by the Client to maintain open positions, contracts and transactions on the basis of the financial market Treaty. o In case of unfavorable for the Client price movement, in the cases provided for by the Treaty and the Rules of interaction between the Company and the Client, the Client’s position may be compulsorily liquidated, which could lead to the implementation of the risk of loss of income and loss of the invested funds risk. The customer will be responsible for any losses thus formed. o As a result of the conditions prevailing on the market, it can be difficult or impossible to close a previously opened positions at their desired price. The emergence of such a situation is possible, for example, with the rapid price changes. o Stop orders to limit losses, not necessarily limit losses to the level calculated in advance, as with the rapid change in the market price of the transaction price performance may be significantly different from the stop price for the worse.
  10. The Company hereby notifies you that the Company enters into similar agreements with third parties, and also takes orders of third parties under other agreements and carries out transactions and other transactions with financial market instruments in the interests of third parties and in their own interests.
  11. The Company hereby notifies the Client that transactions and other transactions in financial instruments on behalf of third parties and in their own interests of the Company may create a conflict between property and other interests of the Company and you.
  12. Also, the customer is notified that the Company does not guarantee income and does not give of any representations regarding the income from the operations carried out by it under the Agreement with the Client. The Customer shall accept the decision made by the financial market transactions in financial instruments, as well as determines the investment strategy.
  13. Transactions in financial loss can result in financial markets, past experience does not determine financial results in the future. Any financial success of others does not guarantee the same results for the Client.
  14. Given the above, the Client should carefully consider whether the risks associated with conducting operations with financial market instruments acceptable to him, in view of its investment objectives and financial capabilities.
  15. The foregoing is not intended to force the client to abandon transactions, but only to help customers understand the risks of this type of business, to determine their suitability, evaluate your financial goals and opportunities and a responsible approach to the issue of selecting an appropriate investment strategy.