- Contracts for Difference (hereinafter "CFDs") are complex instruments that provide no capital protection, and no guaranteed return, whereas the trading results are magnified due to the effect of leverage.
- Trading CFDs is not suitable for all investors; traders should make sure that they fully understand the features of the product and the risks involved before opening trading account(s).
- Traders should ensure that they only trade the amounts they can afford to lose, while being aware of trading risks.
Risk Disclosure
- The Risk Disclosure and Warning Notice (hereinafter "Risk Disclosure document") outlines on a fair and non-misleading basis the general nature of the risks involved when dealing with CFDs.
- Clients should not commence trading in CFDs unless they understand the risks involved. It should be noted that it is impossible for the Risk Disclosure document to contain all the risks and aspects involved in trading CFDs, nor how such risks relate to each client's personal circumstances. Clients need to ensure that their decision is made on an informed basis. Clients may seek professional independent advice before commencing trading.
- This disclosure is provided for informational purposes and should not be treated as marketing material or any form of client solicitation.
- The Risk Disclosure document should be read in conjunction with the Client Agreement and General Business Terms that are available on the website.
- Leverage in CFD transactions allows clients to gain exposure to the underlying asset with a smaller upfront investment, known as margin.
- While leverage is a powerful tool, it can be seen as a double-edged sword. This is because both profits and losses can be magnified by even small market movements; and clients could incur large losses if their position moves against them. However, retail clients cannot lose more than the balance on their trading account(s) as the Company provides "negative balance protection".
- Before investing in margin trading instruments, clients shall ensure that they only invest funds that they can afford to lose.
- CFDs are exposed to market events, such as the implementation of governmental, agricultural, commercial and trade programs and policies, national and international socioeconomic and political events, natural disasters etc., which may substantially affect the price or availability of a given underlying asset. Based on the underlying of each contract, clients are exposed to different types of market risk such as interest rate risk, commodity risk, equity risk, foreign exchange risk, and others.
- Clients must therefore carefully consider their investment objectives, level of knowledge and experience as well as their risk appetite prior to entering this market.
- Volatility risk can significantly impact a CFD position, as higher volatility may lead to larger price swings, increasing both the potential profits and losses.
- Clients should understand and agree that if market conditions become abnormal and/or too volatile, the time required to process their orders and instructions may increase.
Address :
Panther Capitals
Ground Floor, The Sotheby Building, Rodney Village, Gros-Islet,
Rodney Bay, Saint Lucia, LC01401
Regulated in Saint Lucia