RISK DISCLOSURE. IFCM Cyprus Limited

Transcription

1 RISK DISCLOSURE IFCM Cyprus Limited Address: Classic House, 1st Floor, Office No 2, 133 Arch. Makarios III Ave Limassol, Cyprus must be changed to 5a, Andrea Makariou, Agiou Stilianou Linopetra, 4102, Limassol, Cyprus 1

2 Infin Markets Limited (hereinafter referred to as the Company ), having its registered address situated at: Classic House, 1 st Floor, Office No 2, 133, Arch., Makarios III Ave., 3021 Limassol, Cyprus, is authorized to provide investment and financial services by the Cyprus Securities and Exchange Commission under license number No 147/11. This Risk Disclosure Notice (hereinafter referred to as the Notice ) is being provided to the Client according to the Markets in Financial Instruments Directive of the European Union (MiFID), with reference to the proposed entering into an agreement with the Company governing the provision of trading services to the Client. Although the Notice has been drafted to include particular risks that the Company believes to be of relevance, it should not be assumed that it discloses or explains all of the risks involved in trading financial derivative products and in Contracts for Differences (CFDs). The Client should acknowledge and accept that there might be risks involved, not included in this Notice. The Client, when engaging in the agreement for the provision of trading services with the Company, fully acknowledges that he imposes himself in a risk of incurring losses and damages as a result of the purchase and/or sale of any Financial Instrument and declares that he is willing to undertake the risk. The Client should not engage himself in such an agreement, unless he is fully aware of the nature of the agreement he is entering into and the extent of risk exposure. The Client hereby declares to have read, understood and agreed with the following: - Financial instruments offered by the Company are considered to be complex financial instruments. The Company will ask all clients for information to assess whether they have the necessary knowledge and experience to understand the risks involved in the proposed transactions. - CFD and FX transactions are among the riskiest types of investments and can result in big losses. The client acknowledges that he understands these risks and he is willing and able, financially and otherwise, to assume the risks of trading CFDs and financial derivative products. - The general market recommendations provided by the Company are based upon information believed to be reliable and the client understands that the use of historical data and previous performance of financial instruments do not constitute a safe prediction of the future performance of the Financial Instruments referred to and such generic recommendations do not reduce or eliminate the risk inherent in trading CFDs and other financial derivative products. The Client acknowledges that he enters into any transactions relying on his own judgment. - The Client must be prepared and financially able to sustain the total loss of all amounts deposited with the Company when purchasing a derivative financial instrument, as well as any additional commissions and other expenses incurred. - 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. Therefore, the Client understands that having open a long position in financial derivative instruments results to a profit / loss when the market price of the underlying asset rises / falls. Also, the Client understands that having open a 2

3 short position in financial derivative instruments results to a profit / loss when the market price of the underlying asset falls / rises. - In the event where the Client chooses to trade a financial instrument in a currency other than the balance currency of his trading account, he must acknowledge the risk of the changes in the exchange rate having a negative effect on its value, price and performance. - Different markets entail different risks when trading with Financial Instruments. In some cases risks will be greater. The exchange rate variations may affect the prospect of profit or loss from transactions, since when the financial instruments are settled in a currency other than the Client s base currency, the value of Client s profit/loss may be affected by its conversion into the base currency. TAX IMPLICATIONS The Client should bare the risk that when trading with Financial Instruments may be or become subject to tax and/or any other duty. The Company may not guarantee that no tax and/or any other stamp duty will be payable. It is the Client s responsibility to be aware of any taxes and/or any other duty which may result in respect of his trades. COMMISSIONS Before the Client begins to trade, he should be aware and obtain information of all the commissions and other charges for which he will be liable. In the event where any charges are not expressed in money terms, the Client should obtain a written explanation (including examples), to ascertain what such charges are likely to mean in specific money terms. The Client should refer to the Company s web-site ( on all charges and commissions which may be published from time to time. CLASSIFICATION OF CLIENTS Based on the instructions given by CySEC and in accordance with the Markets in Financial Instruments Directive (MiFID), the Company should classify the prospective Clients as Retail Clients, Professional Clients or Eligible Counterparties. The classification will be made based on the information provided to the Company by the Client. LEVERAGE Some investments may be unsuitable for some Investors. Therefore, the Client should carefully consider whether an investment in a particular financial instrument will be suitable for him in the light of his knowledge, trading experience, circumstances and financial resources. For example, Contracts for Differences carry a high degree of risk. The gearing or leverage that is obtainable with Contract for Difference Trading means that the Investor only needs to place a small deposit, comparatively to the size of the transaction, in order to commence trading with the Company, although this small deposit may result in large losses or large gains. In other words, a relatively small movement in the underlying market can have a disproportionately dramatic effect on the Investor s 3

4 trade. The Client understands that the greater the leverage, the greater the risk and therefore, the size of leverage partly determines the result of the investment. MARGIN REQUIREMENTS When considering whether to trade with the Company, the Client must be aware of his obligation to ensure at all time sufficient funds in his trading account in order to observe the Company s margin requirements. If he doesn t maintain enough funds as required, his investment position may be closed at a loss and he will be liable for any resulting deficit. RISK REDUCING ORDERS/ STRATEGIES Orders or policies that are intended to limit losses to smaller amounts may not always proved successful, due to the reason that market conditions or technological limitations may make it impossible to execute such orders. PRICES The prices stated on the Company s Trading Platform may not necessarily reflect the broader market, since the Company acts as market maker. The Company will select closing prices to be used in determining margin requirements and periodically marking to market the positions in the Client s account and closing out such positions not meeting the margin requirements. The Company expects that the prices mentioned will be reasonably related to those available on the Trading Platform. The Company may exercise considerable discretion in setting margin requirements and collecting margin funds. ELECTRONIC TRADING RISKS The Client may be exposed to risks associated with the electronic trading system including the failure of hardware and software and system down time, with respect to the Platform, systems and communication infrastructure (i.e. the internet) connecting the Platform with the Client. The Company shall not be liable for any losses, damages, costs or expenses caused, directly or indirectly by such system failure. TRADING SUSPENSIONS In the event where there is a rapid price movement and the price for an underlying rises or falls during one trading session to such a great extent, then the trading in the underlying can be restricted or suspended. This Notice has been drafted presenting some of the risks and significant aspects that may arise during dealing in derivative financial instruments and investment services. It cannot be presumed that it discloses all the potential risks of trading. CONTACTS 4

5 Customer Service Department Telephone: Fax: