The risk of loss in trading in PRECIOUS METALS (hereinafter called “Investment”) contracts can be substantial. Customer should therefore carefully consider whether such trading is suitable for customer in light of customer’s financial condition. In considering whether to trade, customer should be aware of the following:
- Customer may sustain a total loss of the initial margin funds and any additional funds that customer deposits with STAR GALAXY HOLDING LIMITED (hereinafter called “SG”) to establish or maintain a position in the Investment market. If the market moves against customer’s position, customer may be called upon by SG to deposit a substantial amount of additional margin funds, on short notice, in order to maintain customer’s position. If customer does not provide the required funds within the prescribed time, customer’s position may be liquidated at a loss, and customer will be liable for any resulting deficit in customer’s account.
- Customer may place “stop loss” orders with GE to liquidate customer’s position when the market reaches the price customer has specified
- Under certain market conditions, customer may find it is difficult or impossible to liquidate a position
- Placing contingent orders, such as “stop-loss” or “stop-limit” order, will not necessarily limit customer’s losses to the intended amounts, since market conditions may make it impossible to execute such orders.
- A “spread” position may not be less risky than a simple “long” or “short” position.
- The high degree of leverage that is often obtainable in Investment trading because of the small margin requirements can work against customer as well as for customer. The use of leverage can lead to large losses as well as gain.
- The internet or other electronic media (including without limitation electronic devices, services of third party telecom service providers such as mobile phones or other handheld trading devices or interactive voice response systems) are an inherently unreliable form of communication, and that such unreliability is beyond SG’s control.
- Transactions over the internet or through other electronic media (including without limitation electronic devices, services of third party telecom service providers such as mobile phones or other handheld trading devices or interactive voice response systems) may be subject to interruption, transmission blackout, delayed transmission due to data volume, incorrect data transmission (including without limitation incorrect price quotation) or stoppage of price data feed due to the public nature of the Internet or other electronic media.
- As a result of such unreliability, there may give rise to situations including delays in transmission and receipt of customer’s instructions or other information, delays in execution or execution of customer’s instructions at prices different from those prevailing at the time those instructions were given, misunderstanding and errors in any communication between SG and customer and so on. Whilst SG shall endeavour to take every possible step to safeguard its systems, customer’s information and accounts held for the benefit of its customer, customer shall fully accept the risk of conducting financial transactions via SG’s Electronic Trading Services
- There are substantial risks in allowing an Authorized Third Party to trade or operate customer’s account, and it is possible that instructions could be given by persons not properly authorized. Customer accepts all of the risks of such an operation and irrevocably releases SG from all liabilities arising out of or in connection with such instructions, whether taken by SG or otherwise.
This risk disclosure statement does not purport to disclose or discuss all of the risks, or other significant aspects, of conducting transactions or of the transactions conducted. In light of the risks involved, customer should undertake a transaction only if customer understands its nature, the contractual relationship into which customers are entering, and the nature and extent of customer exposure to risk. Customer should also consider whether a transaction is appropriate for customer in light of customer’s experience, objectives, financial resources and other relevant circumstances. While SG proposes to give this general risk warning, it is not acting as customer’s financial advisor and customer must not regard SG as so acting. Customer should consult customer’s own independent legal, tax or financial advisors prior to entering into any transaction.
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