Online trading: Risk Disclosure

Limited (“” or “we” or “us”), a private limited liability company registered in accordance with the Laws of Malta and having its registered office at Level 2, Suite 2, The Cornerstone Complex 16th September Square, Mosta, MST1180, Malta- EU, bearing company registration number C46029, is licensed by the Malta Financial Services Authority (“MFSA”) (www.mfsa.com.mt) as a Category 3 Investment Services Provider.

This statement, which constitutes an addition to the General Terms & Conditions, cannot and does not disclose or explain all of the risks and other significant aspects involved in trading foreign exchange and derivatives. Engaging in these types of transactions can carry a high risk to your capital, potentially resulting in the total loss of such capital. Should you require a more comprehensive understanding of the risks involved, you should contact for further information.

In consideration of the risks, you should not engage in trading in the mentioned products unless you understand the nature of the contracts and the contractual legal relationship into which you are entering. Transactions in foreign exchange and derivatives are not suitable for many members of the public. You should carefully consider whether transacting in foreign exchange and derivatives is appropriate for you in light of your experience, objectives, financial position and other relevant circumstances. If in doubt, it is advisable to seek independent financial advice.

FOREIGN EXCHANGE AND DERIVATIVES

1. Effect of “Leverage” or “Gearing”

Transactions in foreign exchange and derivatives carry a high degree of risk. The high degree of “leverage” or “gearing” that is often obtainable in foreign exchange and derivatives trading can work against you as well as for you due to fluctuating market conditions. If the market moves against you, you may not only sustain a total loss of your initial margin deposit, and any additional funds deposited with to maintain your position, but you may also incur further liability to . You may be called upon to deposit additional funds on short notice to maintain your position. Failing to comply with a request for a deposit of additional funds may result in closure of your position(s) by on your behalf and you will be liable for any resulting loss or deficit.

2. Risk-reducing Orders or Strategies

The placing of certain orders (e.g. “stop-loss” orders or “stop-limit” orders), which are intended to limit losses to certain amounts, may not be adequate given that market conditions or technological limitations may make it impossible to execute such orders, e.g. due to illiquidity in the market. Strategies using combinations of positions, such as “spread” and “straddle” positions may be as risky as taking simple “long” or “short” positions.

OTC OPTIONS

3. Variable Degree of Risk

Transactions in OTC options carry a high degree of risk. Such transactions should be entered into only if you have read, understood and familiarised yourself with the types of options (i.e. put or call), style of exercise, nature and extent of rights and obligations and associated risks of such transactions. You should calculate the extent to which the value of the OTC option must increase for the position to become profitable, taking into account the premium and all transaction costs.

You should not purchase any OTC option unless you are able to sustain a total loss of the premium and transaction costs associated with purchasing the OTC option.

The risks associated with selling (“writing” or “granting”) an OTC option generally entail considerably greater risk than purchasing an OTC option. If the option is not “covered” by the seller holding a corresponding position in the underlying asset or in another option, the potential loss is unlimited.

Therefore, due to the high degree of risk associated with selling “uncovered” options, will only allow a client to sell an option if the option is “covered” specifically by an existing corresponding long OTC option.

ADDITIONAL RISKS COMMON TO FOREIGN EXCHANGE
AND DERIVATIVE TRANSACTIONS

4. Terms and Conditions of Contracts

You have the responsibility to fully understand the trading rules and/or terms and conditions of the transactions to be undertaken, including, but without limitation:
a) any terms describing risk factors, such as volatility, liquidity, and so on;
b) the terms as to the price, term, expiration date, restrictions on exercising an OTC option and of the terms material to the transaction; and
c) the circumstances under which you may become obliged to make or take delivery of an OTC options contract.

5. Off-exchange transactions

When trading foreign exchange and derivative products, you will be entering into “over-the-counter” (OTC) or “off-exchange” derivative transactions. All positions entered into with must be closed with us and cannot be closed with any other entity. Transactions in OTC derivatives may involve greater risk than investing in on-exchange derivatives because there is no exchange market on which to close out an open position. It may be impossible to liquidate an existing position, to assess the value of the position arising from an off-exchange transaction or to assess the exposure to risk. Bid prices and offer prices need not be quoted, and, even where they are, may find it difficult to establish a fair price particularly when the relevant exchange or market for the underlying is closed or suspended.

6. Suspensions of trading

Under certain market conditions, it may be difficult or impossible to liquidate a position, increasing the risk of loss. This may occur, for example, at times of rapid price movement if the price for the underlying asset rises or falls in one trading session to such an extent that trading in the underlying asset is restricted or suspended.

7. Electronic Trading

Trading through ’s trading system may differ from trading on other electronic trading systems as well as from trading in a conventional or open market. Trading on an electronic trading system will expose you to risks associated with the system including the failure of hardware and software, system downtime, with respect to either ’s trading system or the individual customer’s system, and the communications infrastructure (e.g. the internet) connecting ’s platform with ’s customers. The result of any system failure may be that your order is either not executed according to your instructions or is not executed at all and a lack of capability to keep you informed continuously about your positions and fulfilment of the margin requirements.

8. Weekend Risk

Various situations may arise over a weekend (Friday 22:00 CET – Sunday 23:30 CET), or during a holiday when the financial markets generally close for trading, that may cause the markets to open at a significantly different price from where they closed. customers will not be able to use the trading system to place or change orders over the weekend, on market holidays or and at other times when the markets are generally closed. There is a substantial risk that stop-loss orders left to protect open positions held during these periods will be executed at levels significantly worse than their specified price.

9. Charges and commissions

Before you begin to trade, you should obtain from us details of all commissions and other charges for which you will be liable. These charges will affect your net profit or loss.

10. Money and Collateral

You acknowledge that you can afford to lose the sums that you remit to as deposit. When you deposit money with us, this will generally be held in a segregated client money bank account, except when such money is held by us to secure your actual or potential obligation to us. You acknowledge that the holding of money in a segregated client money bank account may not provide complete protection.

The MFSA’s rules pertaining to client money and Safeguarding of Client Assets will apply. However, these may not afford you complete protection in relation to any money you may have paid to .

11. Specific risks to Asset Management and Advisory Services

Limited has no obligation to cease entering into transactions when the assets on the Account decrease, even substantially. Therefore, the client undertakes to control the development of his account so as to be able to terminate the asset management or advisory services if he is of the opinion that the results do not conform to his expectations or his needs.