Introduction This document does not seek to explain and warn against all of the risks of dealing in Financial Instruments and Derivatives. It is exclusively created to explain the nature of the risks when dealing in the Financial Instruments and Derivatives provided by zonexcapital and helping you – the Client – to decide upon your investments on an informed basis. Risk Warnings We do not recommend any Client to get involved in any investment, directly or indirectly without first understanding the risks concerning each one of the Financial Instruments they are getting involved. Thus, before opening an account, the Client should carefully examine whether investing in a specific Financial Instrument is convenient for him, taking into consideration his circumstances and financial situation
1.The value of any investment in Financial Instruments may fluctuate downwards or
upwards, irrespective of any information which may be presented by Zonexcapital, it is even
possible that the investment may become of no value.
4. The Client is hereby informed that the transactions performed through the services of
ZonexCapital are of a speculative nature. This means that in a short time frame large loss
may take place, even equalling to the total of Client’s funds deposited. In the event that such
a situation arises, any negative balances are for the account of the Client, however, the
Client will not be compelled to pay said negative balances on continuous use of the account.
7.The value of the Derivative Financial Instrument can be influenced by the price of the underlying security or any other external factor such as interest rates etc.
9.As highlighted in point (5) under particular circumstances it may be impossible to execute an order.
10.Using the Stop Loss Order helps Clients to minimize his losses. Nevertheless, under certain market conditions, the realization of a Stop Loss Order may be less favorable than its stipulated price and create larger losses. This is known as slippage.
11.When the quantity of Client’s funds does not allow him to hold current positions open anymore, the Client will be notified and invited to deposit additional funds or reduce his exposure. This should be carried out by The Client in the time frame required, to avoid the liquidation of positions and the resulting deficit. If the Client fails to deposit funds into the account to cover their obligation, zonexcapital will start to close out orders until such time that the Client account has sufficient funding to hold the remaining positions.
12.zonexcapital may be forced to close the Client positions as a result of the insolvency of zonexcapital, bank or broker.
13.The liquidity providers of zonexcapital operate in the same market as the Clients and their own involvement may be contrary to that of the interests of the Client.
14.There is a risk that the Client’s trades in Financial Instruments may become subject to tax and/or any other duty. This can happen for example after changes in legislation or connected to the Client’s personal situation. zonexcapital cannot guarantee that tax/stamp duty will NOT be payable. The Client is responsible for any taxes and/or any other duty which can occur with reference to his trading activity and should seek professional advice if in doubt.
15.The Client should know all the associated costs of trading including the commission rates; SWAP Rates and any other fees that could possibly be incurred by the Client. If needed the Client may request information from the Client Support team to clarify any issues they may have.
16.Trading with some Financial Instruments involves the use of “gearing” or “leverage”. Before engagement in this form of investment, the Client should know, that the high degree of “gearing” or “leverage” is a particular feature of Derivative Financial Instruments. This is bred by the margining system. It generally includes a relatively low deposit or margin in terms of the overall contract value. Then a relatively small movement in the underlying market can have a much stronger effect on the Client’s trade. If this market movement is favorable for the Client, they may make substantial gains. On the other side, an adverse market movement can quickly cause the loss of the Clients’ entire deposit capital and may also result in negative balances. As highlighted in point (4 and 4a).
17.The trading risk is based on the decision and understanding of the Client. At no time does zonexcapital provide any investment advice or recommendations as to when to buy or sell. zonexcapital will, however, publish daily reports on the markets which are for information purposes only. This document endeavors to highlight some of the key risks that a Client is exposed to when trading the Derivative Financial Markets but cannot claim to highlight all of the risks. The Client is obligated to ensure that the risks they exposed to on through such financial transactions are in line with their own personal circumstances. zonexcapital reserves the right to review this Risk Disclosure statement whenever it deems it necessary