The services of the group companies include products traded on margin, and the incidental profits and losses may exceed the risk expectations of your deposited funds, which may not be suitable for all investors. Please ensure that you fully understand the risks involved. Due to certain restrictions stipulated by local laws and regulations, trading customers may lose all the deposited funds, but do not have to undertake subsequent payment obligations for profits and losses that exceed the deposited funds.
>Forex & CFD & Commodity CFD Trading
1. The "Leverage" Effect Forex and CFDs and commodity CFDs are traded with a high degree of risk. Relative to Forex and CFD and Commodity CFD prices, the initial guaranteed amount may be small, so the trade is leveraged. Even a relatively small movement in the market can have a relatively large impact on the funds that the client has or will deposit: this may be beneficial or detrimental to the client. Clients may suffer losses on the initial margin deposited with the company and any additional funds in order to maintain client positions. If the market changes against the client or the level increases, the client may not be able to immediately add margin to maintain the client's position and be liquidated at a loss, and the client will be responsible for the resulting loss.
2. Risk Reduction Orders or Strategies Certain orders (such as "stop-loss" orders, or "stop-limit" orders) that are designed to limit losses to a specific amount may not be effective or executed. If the order is a stop-limit order, there is no guarantee that the order will be executed at the limit price or will be executed. Some strategies that use position consolidation, such as spread or same-price pairing, may carry the same risks as simply taking a "long" or "short" position. Additional Risks of Other Forex and CFDs and Commodity CFDs
3. Trading Facilities Most open outcry and electronic trading facilities are supported by computer-based systems for trade order routing, execution, matching, registration and trade clearing. Like all facilities and systems, they are susceptible to temporary failures. Client's ability to recover certain losses may be subject to limited liability imposed by system providers, marketplaces, clearing houses and/or member firms. These limited liability may vary.
4. Electronic Transactions Transactions through electronic trading systems may differ not only from transactions in the open outcry market, but also from transactions in other electronic systems. If the customer conducts transactions through an electronic system, the customer will be exposed to the associated risks, including hardware and software failures. System failures may cause Client orders to be difficult to execute according to Client's instructions or not to be executed at all.
5. OTC Exchange Trading In some jurisdictions, and only in limited circumstances, companies may be permitted to conduct over-the-counter transactions. A company that trades for a client may be the client's counterparty. CM Trade Ltd is the client's direct counterparty in many foreign exchange and CFD and commodity CFD transactions. CM Trade Limited reserves the right to refuse to accept or guarantee any order. So it may be difficult or impossible to close out existing positions, assess value, and determine fair price assessment risk. For these reasons, trading may involve greater risk. OTC transactions may be less regulated or subject to a different regulatory regime. Clients should understand the applicable regulations and attendant risks before beginning.
6. Transactions in Other Jurisdictions Transactions in other jurisdiction markets (including markets formally connected to local markets) may expose clients to additional risks. Investors may receive different or even reduced investor protections under those market regulations. Clients should inquire about any regulations relating to client transactions before commencing a transaction. The client's local regulatory authority will not be able to enforce the regulations of the regulatory authority or market in other jurisdictions. Clients should determine and understand the compensation available in their own location and in other jurisdictions before starting a transaction.
7. Terms and Conditions for Trading Forex and CFDs and Commodities CFDs Clients must inquire about the terms and conditions and corresponding obligations for buying and selling Forex and CFDs and Commodities CFDs.
8. Suspension or restriction of trading and pricing in relation to market conditions (such as liquidity) and/or the operating regulations of certain markets (such as the suspension of any foreign exchange and CFDs and commodity CFDs due to price restrictions or market suspensions) trades), potentially increasing the risk of loss as it has become difficult or impossible to complete or close out trades or hedge positions. Furthermore, the normal price relationship between the relevant assets and foreign exchange and CFDs and commodity CFDs may no longer exist, and the lack of reference prices for the relevant assets makes it difficult to judge "fairness".
9. Trading Commissions and Other Charges Clients should understand all commissions, fees and other charges that the Client will pay before starting a transaction. These charges will affect possible profits or increase customer losses.
10. Deposited Cash and Property Clients must familiarize themselves with various aspects of the protection of money and property deposited for local or foreign transactions, especially if the company is insolvent or bankrupt. The extent to which a customer can recover cash and property is subject to specific legislation or local rules. In some jurisdictions, when there is a shortfall in settlement, property specifically marked as owned by the customer will be prorated along with the cash.
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