Risk Disclosure Statement for Futures, Forex, Crypto, and Options

This brief statement does not disclose all of the risks and other significant aspects of trading in futures, crypto, forex, and options. In light of the risks, you should undertake such transactions only if you understand the nature of the contracts (and contractual relationships) into which you are entering and the extent of your exposure to risk. Trading in futures, crypto, forex, and options is not suitable for many members of the public. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources, and other relevant circumstances.

Testimonials Disclosure

Testimonials appearing on this website may not be representative of other clients or customers and are not a guarantee of future performance or success. Trading involves risk and no representation is being made that any account will or is likely to achieve profits similar to those discussed.

Futures

Effect of Leverage or Gearing

Transactions in futures carry a high degree of risk. The amount of initial margin is small relative to the value of the futures contract, so transactions are "leveraged." A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit: this may work against you as well as for you.

Risk-Reducing Orders or Strategies

The placing of certain orders, such as "stop-loss" or "stop-limit" orders, may not be effective because market conditions may make it impossible to execute such orders. Strategies using combinations of positions, such as "spreads" or "straddles," may be as risky as taking simple "long" or "short" positions.

Crypto

Trading cryptocurrencies carries a high level of risk and may not be suitable for all investors. The high degree of volatility and the potential for losses exceeding the initial investment mean that only experienced investors with a high risk tolerance should engage in crypto trading. Before deciding to invest, carefully consider investment objectives, level of experience, and risk appetite.

Forex

Trading foreign exchange 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 invest, consider your investment objectives, level of experience, and risk appetite. The possibility exists 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.

Options

Variable Degree of Risk

Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e., put or call) they contemplate trading and the associated risks. You should calculate how much the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs.

Additional Risks Common to Futures, Crypto, Forex, and Options

Terms and Conditions of Contracts

Ask BlackRose Trading about the terms and conditions of the specific contracts you are trading and associated obligations. Under certain circumstances, the specifications of outstanding contracts may be modified by the exchange or clearing house to reflect changes in the underlying interest.

Suspension or Restriction of Trading and Pricing Relationships

Market conditions and/or the operation of the rules of certain markets may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions. This is particularly true in highly volatile crypto markets.

Deposited Cash and Property

You should familiarize yourself with the protections accorded money or other property you deposit for domestic and foreign transactions, particularly in the event of a firm insolvency or bankruptcy.

Commission and Other Charges

Before you begin to trade, obtain a clear explanation of all commission, fees, and other charges for which you will be liable. These charges will affect your net profit or increase your loss.

Currency Risks

The profit or loss in transactions in foreign currency-denominated contracts will be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency.

Electronic Trading

Trading on an electronic trading system may differ from traditional trading methods. You will be exposed to risks associated with the system, including the failure of hardware and software.

Off-Exchange Transactions

In some jurisdictions, firms are permitted to effect off-exchange transactions. These may involve increased risks and may be less regulated or subject to a separate regulatory regime.