Leverage Risk. 9.1.1. When trading on "margin trading" conditions, small changes in currency values may affect the balance of the Client's trading account due to the effect of leverage. If the market movement is against the order of the Client, then the Client may incur a large loss until he can spend all the balance in the trading account as well as other funds to maintain open order positions. The client is fully responsible for the risks, use of trading tools and trading strategies.
Leverage Risk. 2.1.1 Unlike traditional trading, trading forex and CFDs means that you are able to trade the Markets by paying only a small percentage of the total trade value when opening a position referred to as “Margin”.
Leverage Risk. The Fund has issued indebtedness and preferred shares and may borrow money or issue debt securities as permitted by the 1940 Act. As of March 31, 2021, the Fund has leverage in the form of borrowings under the SSB Agreement and outstanding MRP Shares. Leverage is the potential for the Fund to participate in gains and losses on an amount that exceeds the Fund’s investment. The borrowing of money or issuance of debt securities and preferred shares represents the leveraging of the Fund’s common shares. As a non-fundamental policy, the Fund may not issue preferred shares or borrow money and/or issue debt securities with an aggregate liquidation preference and aggregate principal amount exceeding 38% of the Fund’s managed assets measured at the time of borrowing or issuance of the new securities. However, the Board of Trustees reserves the right to issue preferred shares or debt securities or borrow to the extent permitted by the 1940 Act and the Fund’s policies. See “Leverage.” Leverage creates risks which may adversely affect the return for the holders of common shares, including: • the likelihood of greater volatility in the net asset value and market price of the Fund’s common shares; • fluctuations in the dividend rates on any preferred shares borne by the Fund or in interest rates on borrowings and short-term debt; • increased operating costs, which are effectively borne by common shareholders, may reduce the Fund’s total return; and • the potential for a decline in the value of an investment acquired with borrowed funds, while the Fund’s obligations under such borrowing or preferred shares remain fixed. In addition, the rights of lenders and the holders of preferred shares and debt securities issued by the Fund will be senior to the rights of the holders of common shares with respect to the payment of dividends or to the payment of assets upon liquidation. Holders of preferred shares have voting rights in addition to and separate from the voting rights of common shareholders. See “Description of Securities — Preferred Shares” and “Certain Provisions of the Agreement and Declaration of Trust and By-Laws, Including Antitakeover Provisions.” The holders of preferred shares or debt, if any, on the one hand, and the holders of the common shares, on the other, may have interests that conflict in certain situations. The Fund’s use of leverage is premised upon the expectation that the Fund’s preferred share dividends or borrowing cost will be lower than the retu...
Leverage Risk. 2.1.1 Unlike traditional trading, trading in securities means that you are able to trade the Markets by paying only a small percentage of the total trade value when opening a position referred to as “Margin”.
Leverage Risk. Excessive leverage available with OTC margined spot Foreign Exchange, Precious Metals and CFDs can lead to quick losses. The Customer agrees that using a high degree of leverage, defined as the use of a small amount of capital to control a larger amount in an open position, can result in large losses due to a price change(s) of open positions with BLUE SUISSE. BLUE SUISSE allows leverage on most currency pairs, which leverage shall depend on the type of client and his/her experience. Just by way of illustration, a 100:1 leverage, allows the Customer has the potential to control a $100,000 position with $1,000 in an Account. BLUE SUISSE encourages each of its Customers to use only that portion of leverage that such Customer is most comfortable with and to use money management precautions such as, but not limited to, Stop Loss Orders for the purpose of managing risk. Furthermore, you agree that BLUE SUISSE reserves, at its sole discretion, the right to reduce or increase the amount of leverage given on any Instrument at any time and without notice.
Leverage Risk. FX Contracts and CFD's like most derivative instruments are volatile. Often, FX Contracts and CFD's are greatly "geared" or "Leveraged" and as a result, a relatively small market movement can, in addition to achieving substantial gains where the market moves in your favour, result in considerable losses, where the market moves against you.
