Risk Disclosure Statement

Important information about the risks involved in trading financial instruments

High Risk Investment Warning

Trading in foreign exchange, commodities, indices, stocks, and cryptocurrencies on margin carries a high level of risk and may not be suitable for all investors.

The high degree of leverage can work against you as well as for you. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite. There is a possibility that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.

Key Risks You Should Understand

1. Leverage Risk

Leverage amplifies both profits and losses. While leverage allows you to control larger positions with less capital, it also means that small market movements can result in significant gains or substantial losses that may exceed your initial investment. A 1% adverse market movement in a position with 1:100 leverage could result in a 100% loss of your invested capital.

2. Market Volatility

Financial markets can be highly volatile. Prices of currencies, commodities, indices, and other instruments can fluctuate rapidly and unpredictably due to economic events, political developments, natural disasters, or market sentiment. Volatility can result in price gaps where your stop-loss orders may not execute at the intended price.

3. Margin Calls and Stop-Out

Your positions may be automatically closed if your margin falls below required levels. A margin call occurs when your account equity falls below 80% of the required margin. If your equity drops to 50% of required margin (stop-out level), positions may be automatically closed to prevent further losses, potentially resulting in significant capital loss.

4. Liquidity Risk

Market liquidity can vary significantly. During periods of low liquidity (such as market openings/closings, holidays, or major news events), spreads may widen dramatically and it may be difficult or impossible to execute orders at desired prices. This can result in slippage where your order is filled at a worse price than expected.

5. Technology and Connectivity Risks

Technical issues can prevent you from executing trades. Internet connection problems, platform malfunctions, or system outages may prevent you from accessing your account or executing orders. While we maintain robust systems, no technology is completely immune to failure.

6. Cryptocurrency Volatility

Cryptocurrencies are extremely volatile and speculative. Digital currencies can experience price swings of 10% or more in a single day. Cryptocurrency markets operate 24/7 with no circuit breakers, meaning rapid price movements can occur at any time, including when you may not be able to monitor your positions.

7. No Guarantee of Profit

Past performance does not guarantee future results. No trading system, strategy, or signal can guarantee profits. The majority of retail traders lose money when trading leveraged products. You should never trade with money you cannot afford to lose.

Additional Risk Factors

Regulatory and Legal Changes

Changes in laws, regulations, or government policies may affect the value of instruments or your ability to trade certain products. Tax treatment of trading profits may also change.

Counterparty Risk

While we segregate client funds and use tier-1 banking institutions, there remains a risk that in extreme circumstances, you may not be able to recover all of your funds.

Currency Risk

If you trade instruments denominated in a currency other than your account base currency, exchange rate fluctuations may affect your profits or losses.

Overnight Financing Costs (Swap)

Positions held overnight are subject to swap charges or credits based on interest rate differentials. These costs can be substantial for long-term positions and may reduce or eliminate trading profits.

Seek Professional Advice

You are strongly advised to obtain independent financial, legal, and tax advice before proceeding with any trading activity. Nothing on this website should be read or construed as constituting advice on the part of Jaaz Markets Ltd. or any of its affiliates.

Client Acknowledgment

By opening an account with Jaaz Markets Ltd., you acknowledge that:

  • You have read, understood, and accepted this Risk Disclosure Statement
  • You understand the risks involved in trading leveraged financial instruments
  • You are trading with money you can afford to lose
  • You have sought independent advice if necessary for your circumstances
  • You accept full responsibility for your trading decisions and their outcomes

Understand the Risks Before Trading

Ensure you fully understand these risks before opening a trading account

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