Common use of Risk-Reducing Orders or Strategies Clause in Contracts

Risk-Reducing Orders or Strategies. The placing of certain orders (e.g. `stop-loss' orders, where permitted under local law, or `stop-limit' orders) which are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders. Strategies using combinations of positions, such as `spread' and `straddle' positions may be as risky as taking simple `long' or `short' positions. Options

Risk-Reducing Orders or Strategies. The placing of certain orders (e.g. `“stop-loss' ” orders, where permitted under local law, or `“stop-limit' ” orders) which that are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders. At times, it may also be difficult or impossible to liquidate a position without incurring substantial losses. Strategies using combinations of positions, such as `“spread' ” and `“straddle' positions ” positions, may be as risky as taking simple `“long' ” or `“short' ” positions. Options.