FxPro Risk
Disclosure
EuroOrient Securities and Financial Services Ltd
(hereinafter called the 'Company') is an Investment Firm regulated
by the Cyprus Securities and Exchange Commission (license number
078/07). This notice is provided to you in accordance with the
Markets in Financial Instrument Directive (MiFID) of the European
Union.
EuroOrient Securities and Financial
Services Ltd does not and cannot guarantee the initial capital of
the Clients' portfolio or its value at any time or any money
invested in any financial instrument.
The Client should unreservedly
acknowledge and accept that, regardless of any information which may
be offered by the Company, the value of any investment in Financial
Instruments may fluctuate downwards or upwards and it is even
probable that the investment may become of no value.
The Client should unreservedly
acknowledge and accept that he runs a great risk of incurring losses
and damages as a result of the purchase and/or sale of any Financial
Instrument and accepts and declares that he is willing to undertake
this risk.
The Client should not engage in any
investment directly or indirectly in Financial Instruments unless he
knows and understands the features risks involved for each one of
the Financial Instruments.
The Client should declare that he has read, comprehends
and unreservedly accepts the following:
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Information of the previous performance of a
Financial Instrument does not guarantee its current and/or
future performance. The use of historical data does not
constitute a binding or safe forecast as to the corresponding
future performance of the Financial Instruments to which the
said information refers.
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Some Financial Instruments may not become
immediately liquid as a result e.g. of reduced demand and the
Client may not be in a position to sell them or easily obtain
information on the value of these Financial Instruments or the
extent of the associated risks.
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When a Financial Instrument is traded in a
currency other than the currency of the Client's country of
residence, any changes in the exchange rates may have a negative
effect on its value, price and performance.
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A Financial Instrument on foreign markets may
entail risks different to the usual risks of the markets in the
Client's country of residence. In some cases, these risks may be
greater. The prospect of profit or loss from transactions on
foreign markets is also affected by exchange rate fluctuations.
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A Derivative Financial Instrument (i.e.
option, future, forward, swap, contract for difference) may be a
non delivery spot transaction giving an opportunity to make
profit on changes in currency rates, commodity, stock market
indices or share prices called the underlying instrument.
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The value of the derivative financial
instrument may be directly affected by the price of the security
or any other underlying asset which is the object of the
acquisition.
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The Client must not purchase a derivative
financial instrument unless he is willing to undertake the risks
of loosing entirely all the money which he has invested and also
any additional commissions and other expenses incurred.
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The Client acknowledges and accepts that
there may be other risks which are not contained above.
The Client should take the risk that his
trades in Financial Instruments may be or become subject to tax
and/or any other duty for example because of changes in legislation
or his personal circumstances. The Company does not warrant that no
tax and/or any other stamp duty will be payable. The Client should
be responsible for any taxes and/or any other duty which may accrue
in respect of his trades.
Before The Client begins to trade, he
should obtain details of all commissions and other charges for which
the Client will be liable. If any charges are not expressed in money
terms (but for example as a dealing spread), the Client should
obtain a clear written explanation, including appropriate examples,
to establish what such charges are likely to mean in specific money
terms.
In order to comply with the
Markets in
Financial Instrument Directive (MiFID) of the European Union, the
Company will classify the prospective client as Retail Client,
Professional Client or Eligible counterparty when considering the
application for opening an account, based on the information
provided to the Company.
Prior to applying for an account the
Client should consider carefully whether investing in a specific
Financial Instrument is suitable for him in the light of his
circumstances and financial resources. Investing in some Financial
Instruments entails the use of 'gearing' or 'leverage'. In
considering whether to engage in this form of investment, the Client
should be aware of the following:
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The high degree of 'gearing' or 'leverage' is
a particular feature of Derivative Financial Instruments. This
stems from the margining system applicable to such trades, which
generally involves a comparatively modest deposit or margin in
terms of the overall contract value, so that a relatively small
movement in the underlying market can have a disproportionately
dramatic effect on the Client's trade. If the underlying market
movement is in the Client's favour, the client may achieve a
good profit, but an equally small adverse market movement can
not only quickly result in the loss of the Clients' entire
deposit, but may also expose the Client to a large additional
loss. In regard to transactions in CFDs with the company, a CFD
is a non delivery spot transaction giving an opportunity to make
profit on changes in currency rates, commodity, stock market
indices or share prices called the underlying instrument. The
Client must not purchase CFDs unless he is willing to undertake
the risks of loosing entirely all the money which he has
invested and also any additional commissions and other expenses
incurred.
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The Client may be called upon to deposit
substantial additional margin, at short notice, to maintain his
investment. If the Client does not provide such additional funds
within the time required, his investment position may be closed
at a loss and he will be liable for any resulting deficit. With
regards to transactions in CFDs, the Company has the
discretionary right to start closing positions when margin
decreases to about 10%, and automatically close all positions at
market prices if margin drops below 5%. The company guarantees
that there will be no negative balance in the account when
trading CFDs.
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Such transactions may not be undertaken on a
recognised or designated investment exchange and, accordingly,
they may expose the Client to greater risks than exchange
transactions. The terms and conditions and trading rules may be
established solely by the counterparty. The Client may only be
able to close an open position of any given contract during the
opening hours of the exchange. The Client may also have to close
any position with the same counterparty with whom it was
originally entered into. In regard to transactions in CFD's with
the Company, the company is using a Trading Platform for
transactions in CFD's which does not fall into the definition of
a recognised exchange as this is not a Multilateral Trading
Facility because the Company is always the counterparty in every
client transaction.
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The Company may not provide the Client with
investment advice relating to investments or possible
transactions in investments or make investment recommendations
of any kind. This prohibition is subject to an exception where
advice given amounts to the giving of factual market information
or information, in relation to a transaction about which the
Client has enquired, as to transaction procedures, potential
risks involved and how those risks may be minimised.
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The Company may be required to hold the
Client's money in an account that is segregated from other
clients and the Company's money in accordance with current
regulations, but this may not afford complete protection.
This notice cannot and does not disclose
or explain all of the risks and other significant aspects involved
in dealing in all financial instrument and investment services. The
Client will be informed in more detail for the risks involved based
on the categorisation assigned to him by the company and the
investment services and financial instruments selected.
Please refer to the Risk Disclosure for
Contracts for Difference if you are considering trading with the
Company in the financial instrument of Contracts for Difference.
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