Common use of Risk of Trading Futures and Option Clause in Contracts

Risk of Trading Futures and Option. The risk of loss in trading futures contracts or options is substantial. In some circumstances, the Client may sustain losses in excess of the Client’s initial margin funds. Placing contingent orders, such as "stop-loss" or "stop-limit" orders, will not necessarily avoid loss. Market conditions may make it impossible to execute such orders. The Client may be called upon at short notice to deposit additional margin funds. If the required funds are not provided within the prescribed time, the Client’s position may be liquidated. The Client will remain liable for any resulting deficit in the Client’s Account. The Client should therefore study and understand futures contracts and options before the Client trades and carefully considers whether such trading is suitable in the light of the Client’s own financial position and investment objectives. If the Client trades options the Client should inform himself of exercise and expiration procedures and the Client’s rights and obligations upon exercise or expiry.

Risk of Trading Futures and Option. The risk of loss in trading futures contracts or options is substantial. In some circumstances, the Client Customer may sustain losses in excess of the ClientCustomer’s initial margin funds. Placing contingent orders, such as "stop-loss" or "stop-limit" orders, will not necessarily avoid loss. Market conditions may make it impossible to execute such orders. The Client Customer may be called upon at short notice to deposit additional margin funds. If the required funds are not provided within the prescribed time, the ClientCustomer’s position may be liquidated. The Client Customer will remain liable for any resulting deficit in the ClientCustomer’s Account. The Client Customer should therefore study and understand futures contracts and options before the Client Customer trades and carefully considers whether such trading is suitable in the light of the ClientCustomer’s own financial position and investment objectives. If the Client Customer trades options the Client Customer should inform himself familiar with the of exercise and expiration procedures and the Client’s rights and obligations upon exercise or expiryexpiry of such options.