Understand the risks before using leveraged OTC products.

Trading leveraged foreign exchange and over-the-counter derivatives, including contracts for difference, involves a high degree of risk and may not be appropriate for every client. Losses may exceed funds initially deposited where permitted by the applicable agreement and law. Prospective clients should understand the products, their financial resources and their capacity to bear loss, and obtain independent professional advice where appropriate.

Leverage and margin

Leverage magnifies gains and losses. Relatively small market movements can materially affect margin and may lead to additional funding requirements, automatic position closure or losses greater than the amount initially deposited. Margin requirements may change, including during volatile conditions.

OTC and counterparty risk

OTC derivatives are contracts with a counterparty and are not ownership of the underlying asset. Clients are exposed to the counterparty, the contractual terms and the available legal and operational protections. Closing or transferring a position may depend on the contract and market conditions.

Market, pricing and liquidity risk

Prices may move rapidly or gap, liquidity may decline, spreads may widen and orders may execute at a different price from that requested. Stop, limit and other conditional orders may not prevent loss or execute at their requested level. Underlying-market closures, suspensions and corporate or economic events may affect pricing and availability.

Execution and technology risk

Connectivity, platform, device, market-data, third-party and operational failures can delay, duplicate or prevent instructions and reporting. Clients must maintain suitable systems, secure authorised access and contingency procedures. Online status indications do not guarantee uninterrupted availability.

Currency, legal and jurisdictional risk

Exchange-rate changes may affect positions, collateral, fees and reporting. Laws, taxes, regulations, market rules and protections vary and may change. A product or service available to one client or jurisdiction may be unavailable to another.

Information and advice

Website information is general and does not take account of a particular organisation’s objectives, financial situation or needs. It is not investment, legal, tax or accounting advice, a personal recommendation or a guarantee of outcome. Past performance and illustrative scenarios are not reliable indicators of future results.