1. Risk disclosure
Potential customers should consider very carefully the notice of the risks. Please note that we do not study and do not explain all the risks associated with trading in financial instruments. We present a general picture of such risks, honestly and truthfully describing them.
In particular, Contracts for Difference ( ‘CFD’) are complex financial products and are not suitable for all investors. CFD – a product that is financed by borrowed funds. It expires when you close an open position. By investing in the CFD, you assume a high level of risk that may result in the loss of your invested capital.
While the client does not read the notice about the risks and do not fully understand how to trade risky financial instruments, it should not open the transaction and trade. You do not have to risk a lot of money than can invest in the deal. You must be prepared for some losses. BidAsko not obligated to provide customers nor any financial advice on investments, possible transactions at investment funds and financial instruments or provide any investment advice. Customers make their own decisions when choosing a financial instrument in accordance with their financial situation and the objectives pursued when opening an account in BidAsko. If the client does not clear all risks associated with trading in financial instruments, in this case it is necessary to contact an independent financial adviser. If even after consulting the client is still not aware of the possible risks, he should refrain from trading. Buying and selling of financial instruments associated with a high level of risk – financial losses and damage. In this case, you can lose your entire invested capital, or even more. So the decision to be taken reasonably.
- The client must be responsible for financial losses due to incorrect information, communication, work, or other electronic systems. Incorrect operation of a system can lead to customer orders non-performance in accordance with its instructions or non-execution of such orders at all. The Company is not responsible for the failures mentioned in the work systems.
- При торговле через клиентский терминал клиент несет подную ответственность за риски финансовых потерь, возникшие в результате:
- failure, incorrect operation or misuse of software or hardware or client companies;
- bad Internet connection from the client or the company or both sides, including the interruption or turn off data or malfunction of the public electricity grids, hacker attacks, communication overload;
- incorrect settings in the client terminal;
- overdue client terminal updates;
- ignoring the client applicable rules described in the manual for use of the client terminal, as well as on the company’s website.
- The client is fully aware that in times of high incidence of investment proposals may be difficult telephone connection with the dealer, especially on the fast market (for example, during the release of the main macroeconomic indicators).
Abnormal market conditions
- The client must acknowledge that during abnormal market conditions during the execution of instructions and queries can be extended.
- The client is fully aware of what is allowed to perform only one request or instruction. If the client has sent a request or instruction any other requests or instructions on his part ignored by the company. In this case, the message “Order closed” until the first request or instruction will be executed.
- The client is fully aware that the only reliable source for quotations stream data is real / actual quotations base, located on the server side of the trading platform. Base quotes in the client terminal is not a reliable source for quotations stream data as the connection between the client terminal and the server may be interrupted at some point in time, and some quotations may not act in the client terminal.
- The client is fully aware that in the case of closing the client window placement / modify / delete an order or closing the window opening / closing positions, the instruction or request sent to the server are not subject to cancellation.
- If the client has not received the desired result of execution have already sent instructions to them and, therefore, decides to repeat the instruction, the client must assume the risk of execution of two transactions instead of one. While the client may receive the message “The deal is closed”, as described in paragraph 2.5 above.
- The client is fully aware that if the pending order has been executed, but the client re-sends an instruction to change its level and the level of orders If-Done at one and the same time, only one instruction to be executed, an instruction to change the levels of Stop Loss and / or Take Profit position which was opened as a result of the execution of the pending order.
- Customer assumes all risks associated with the financial losses incurred due to late receipt of the notification by the client or their absence from the company.
- The client is fully aware that the unencrypted information transmitted by e-mail, is not protected from unauthorized access.
- The customer bears full responsibility for the risks associated with unread messages with internal trading platform, sent by the client. Thus it is necessary to pay attention to what they have to be removed within three (3) calendar days.
- The customer is solely responsible for the confidentiality of information received from the company, and assumes the risk of financial losses related to unauthorized access of third parties to the client’s trading account.
- The Company is not responsible in case the authorized / unauthorized persons access to data, including email addresses, e-mail and personal information when transmitting the above between the Company or any third party via the Internet or any other network of data transmission, phone, or any other electronic device.
Force majeure circumstances
- Force majeure circumstances are governed by the Client Agreement and the legal norms.
3. Risk disclosure statement for foreign exchange and derivative products
- This notice can not identify all the risks and other significant aspects of the foreign exchange and derivative products, namely: futures, options and Contracts for Differences. You should not trade in these products, as long as you do not fully understand their nature and the level of risk associated with them. You also need to understand the suitability of your product due to your financial possibilities and circumstances. Certain strategies, namely the position on the “Spread” or “straddle” can also be risky, as long or short position. Although the foreign exchange and derivative instruments may be used for the management of investment risk, some of these products are unsuitable for many investors. You should not directly or indirectly sell derivative products as long as you do not fully realize the degree of risk associated with the activity data, as you may completely lose all the money you invested. Different instruments involve different levels of risk, so you need to carefully weigh all the “pros” and “against” before choosing a particular product for trading.
Effect of leverage
- In margin trading conditions even small market changes may significantly affect the client’s trading account. It is important to remember that trading on all accounts come with leverage. The client is obliged to recognize that if the market moves against him, the loss is inevitable, therefore financial damage can exceed the size of the amount invested by the client. Customer is responsible for all the risks and the financial resources that it uses, including trading strategies. The client is recommended to maintain the margin level (ratio of equity to necessary margin, based on the formula: Equity / Margin * Required 100%) of not less than 1000%. It is also recommended to place the Stop Loss to limit potential losses and Take Profit for profit in those cases where the client does not have the ability to manage their open pozitsiyami.Klient held responsible for all financial losses incurred as a result of the opening position by temporary formation in the trading account enough the level of freedom of the margin, which, in turn, became available due to a profitable position (later canceled by the company), open on the incorrect quotation (spike) or for the quotation, which is the result of a manifest error.
High volatility tools
- Some instruments are traded throughout the day on a large part of the price. Therefore, the client must be careful and must be understood that in addition to potentially big profits are at high risk of large losses. Price derivative instruments generated from the price of the underlying asset of the instrument (eg, currency, stocks, metal, index, etc.). Derivative financial instruments and markets vysokovolatilny appropriate. Prices of tools can dramatically vary widely, reflecting the unexpected changes in market conditions, which can not be controlled by either the customer or the company. It is possible that under such market conditions warrant can not be executed at the stated price, which may lead to losses. At the price of instruments and the underlying assets, among other things, influenced by changes in supply and demand levels, governmental, agricultural, commercial and trade programs and policies, national and international political and economic events and the prevailing psychological mood of the relevant market. Therefore Stop Loss order can not guarantee limit losses. Customer acknowledges and accepts that regardless of prdlozhennoy company information, instrument price value can vary both up and down, moreover, there is a possibility that the investment may lose value. Margin system applicable to such transactions and allows to handle large volumes in the presence of a relatively small amount in the account, it leads to the fact that even a relatively small movement in the underlying market can have a significant impact on the outcome of the customer transaction. If the movement takes place in the market in favor of the client, the client can make a good profit. But even a small movement in the market is not in favor of the client can lead to loss of customer funds.
- Some of the underlying assets may not be immediately liquid as a result of low demand for these assets. In this case, the client can not get information on the cost of the asset and the risk associated with it.
- Futures transaction includes the obligation to make or take delivery of the underlying asset of the contract at a future date, or in some cases, replace it with the payment of the price difference. The use of leverage are often available when trading futures, it means that even a small amount of money can bring a big profit, and result in significant losses. It also means that a relatively small movement in the market can significantly change the amount of funds that can be operated in the trader’s favor and against it. futures transactions relating to contingent liabilities, and you need to know about this, in particular, the requirements on the margin, which are listed below.
- There are many different types of options with different characteristics based on the following usloviy.Pokupka options: Buying options is associated with less risk than selling them, because if the price of the underlying asset moves against you, you can simply let the option expire. The maximum loss is limited to the option price plus commission and other operating charges. Although, if you buy a Call option on a futures contract and then exercise the option, you get the futures. In this case, you will be exposed to risks associated with futures transactions and contingent liabilities due to investment activities.Selling options:If you sell an option, the risks involved are much higher than when buying. You may be liable for margin to maintain your position, in this case you could sustain a loss well in excess of the profits. By selling an option, you are a legal obligation to purchase or sell the underlying asset if the option is executed against you, though, how far left the market price of the exercise price. If you already own the underlying asset which you intend to sell the contract (in this case the option is known as a covered call option Call), the risks are reduced. If on the contrary, you do not own the underlying asset (the option known as unsecured option Call), the risk can be unlimited. Only experienced traders may sell uncovered options Call, while taking into account all the details of the applicable conditions and potential risks.
Kontrasts odds Differentses
- Transactions with CFD, currency pairs and precious metals related to OTC transactions. As some of the OTC markets highly liquid, transactions in derivatives nontransferable or any other transaction in these markets tend to be associated with a higher risk than transactions made with stock derivatives. This is due to the lack of foreign exchange market, where you can close an open position. In this case, it is impossible to liquidate an open position, to assess the value of the position based on the off-exchange transaction or to assess the level of risk. Bid and Ask prices are not listed. Even if they are still there, they are set dealers traded instruments. Thus, it is impossible to accurately assess the integrity of the price. In respect of transactions with the CFD, currency pairs and precious metals trading platform the company uses to perform operations with the CFD, which does not fall under the definition of the official foreign exchange market, because it is not a multilateral trading platform, so it does not provide an appropriate level of protection.
- Activity in foreign markets involves various risks. The Company is required to provide a description or explanation of the risks and methods of protection (if any) in the conduct of activities in the INSTRAW markets, including the degree of responsibility for default in the case of mediation with a foreign company, that it is ready to take over. The potential for profit or loss in the performance of transactions on contracts in foreign markets is subject to fluctuations in foreign currency exchange rates.
Investment operations contingent liabilities
- Margin investment operations to contingent liabilities allow you to buy the contracts by means of partial contributions, instead of immediately provide full payment. Margin requirement is dependent on an underlying asset. margin requirement may be fixed or calculated based on the current price of the underlying instrument. This price is represented on the company’s website.
If you trade Futures, Contracts for Differences or sell options, you may lose all the money you invested, you used to open and maintain a position. If the market goes against you, you have to make extra money in the short term so as not to lose the position. If you are unable to maintain the position and make money within the specified time, your position may be closed. Thus, you are responsible for the lack of funds and the results of its operations. Please note that the company is not liable in relation to the client notices on margin requirements to prevent the liquidation of the client’s position and it incurred any poteri.V case you nemarzhevoy operations will still be necessary to make additional funds under certain circumstances, if you signed a contract .Investitsionnye operations contingent liabilities that are not carried out on the basis of official regulations or a recognized investment exchange, may cause a significant risk that you will have to take.
- If you deposit collateral in a company, such action involves a different attitude to the above means, depending on the type of transaction and the place where the transaction is made. Also, the ratio may depend on whether you are trading in official or recognized investment exchange with the rules of the stock exchanges (or the relevant clearing organizations), or you make OTC transactions. Collateral may lose its value as your property if the transaction on your behalf have been committed. Even if these deals are profitable, you can not get the same assets, which you invest, while you will have to accept payment in cash. You must clearly find out how your pledge money will be used.
The commission and taxes
- Before you begin to trade, you should find out what fees and charges you will have to take over. If any charges are not expressed in money terms (but, for example, as a percentage, depending on the price of the contract), you must ensure that you fully understand how much in monetary terms of this percentage.
- There is a risk that the transaction for the customer’s financial instruments, including derivative instruments may be subject to tax and / or any other financial obligations, for example, due to changes in legislation or based on personal circumstances. The Company does not guarantee the absence of liability for any tax payments and / or state tax. Customer is responsible for any tax payments and / or any financial obligations that may arise in connection with the settlement of transactions.
- Under certain circumstances, you may have difficulty closing out. This may happen in a period of rapid tsenodvizheniya if the price falls or rises during one trading session. This drop or increase in price leads to a suspension or limitation of trading in accordance with the relevant market rules. Placing Stop Loss orders to anything not lead, that is, you will not be able to limit their losses as due to market conditions, pursuant to this order at a specified price is not possible. Moreover, Stop Loss order execution can cause the worst effects and cause significant financial damage, under certain market conditions.
Protection clearing organizations
- In many markets the transaction pursuant to your organization (or a third party who has the right to do) is guaranteed by the exchange or clearing company. While this warranty in most cases can not insure you or protect, if your organization or a third party who acts on your behalf, fails to fulfill its obligations in relation to you. Upon request, the company must clearly explain all the principles of the protection provided to you under the clearing guarantee, which applies to any exchange derivatives with whom you are dealing. For traditional options, there is no clearing organization, as well as for off-exchange instruments which are not traded on the basis of the principles and rules of the official or recognized investment exchange.
- Financial insolvency or bankruptcy of the company may lead to the elimination of positions or closing without your explicit consent. In certain circumstances, you may not get back your assets you have as collateral agent. Moreover, you will have to accept any payment in cash or in any other suitable manner.
- The funds will be subject to protection in accordance with applicable regulations.
- Not separated funds are not subject to protection in accordance with applicable regulations. Do not separate from the company’s money will be used in the company’s activities, and in the case of insolvency of the company you will be considered as its main creditor.
4. Risks associated with a third party
This notification shall be submitted to you in accordance with applicable law.
- The Company may transfer received from the customer’s money to a third party (such as a bank, market, broker, intermediary, OTC counterparty or clearing house) in order to store or control for the purpose of carrying on or through third-party financial transactions or to meet requirements customer’s obligations to provide collateral (eg initial margin requirement) in respect of a financial transaction. The Company is not responsible for any actions or omissions of any third party to whom she gave the money to the customer.
- The third party, which the company transfers money can store them on a joint account, therefore not always possible to separate the money from the money of other clients or money most third party. In the case of insolvency or other similar situation involving a third party, the company can only submit an unsecured claim on behalf of the client, and the client is at risk due to the fact that the money received by the company from a third party, will not be enough to satisfy the suit against the client’s requirements the corresponding account. The Company does not undertake any obligation or responsibility for any possible losses.
- The company can make the client money to depositors of a third party that can get them welfare, have a right of retention or the right to compensation for the money.
- The bank or broker with whom the company does business may have interests that are contrary to the interests of the client.