Risk Disclosure for DuraMarkets
Understanding the risks involved in financial markets is crucial for all clients. While this summary aims to highlight key risks, it does not cover every aspect comprehensively. Financial markets offer substantial profit potential but also come with significant risks, including the risk of losing the entire investment. It’s important to note that trading may not be suitable for all traders, so clients must carefully consider these risks before engaging in it.
Market and Trading Risks
Trading ranks among the most stressful jobs globally, and improper handling can lead to substantial losses. Profitability often hinges on scientific, programmatic, and unemotional trading approaches, with no guarantees of consistent profits or avoiding losses. Clients must acknowledge these inherent risks and be financially capable of withstanding potential losses.
Only traders who understand and accept the economic, legal, and other risks, possess experience in derivatives trading, and can afford losses beyond margins or deposits should engage in such trading.
Trading Platform Risks
Order Execution: Clients must understand that orders are executed based on their arrival at the server, risking unintended transactions if multiple requests are sent simultaneously. The Company bears no liability for failed order executions due to market conditions.
One-click Trading and Immediate Execution: DuraMarkets offers immediate order execution upon clicking “Buy/Sell,” with no chance to review or cancel orders. Clients should use the demo system to familiarize themselves with this feature.
Risk-reducing Orders or Strategies: Certain risk-reducing orders like “stop-loss” or “limit” orders may not always be effective due to market conditions, and complex strategies carry their own risks.
Technical Risks
Clients acknowledge the risk of financial losses due to system failures like electrical or communication disruptions. They must also be aware of risks related to platform settings, upgrades, and hardware/software failures from their end.
Communication Risks
Unencrypted communication via email is vulnerable to unauthorized access, and clients are responsible for securing their information and trading accounts from third-party access risks.
Effects of Leverage and Gearing
Trading’s high leverage amplifies both profits and losses. Clients must assess their risk tolerance, and investment objectives, and leverage usage carefully to avoid unsustainable losses.
Force Majeure
Clients bear the risk of financial losses in unforeseen circumstances like natural disasters, server interruptions, or other unexpected events beyond the Company’s control.