Risk Disclosure

Important information about the risks associated with trading financial instruments through TradeCircle.

Risk Warning

CFDs are complex instruments with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.

CFD Trading Risks

CFDs are complex financial instruments. Before trading, you should ensure you understand how they work and the associated risks.
CFD trading carries a high risk of losing money rapidly due to leverage. You may lose more than your initial deposit.
The price of CFDs is derived from the price of an underlying asset (e.g., a currency pair, commodity, or index). CFD prices may not reflect the underlying market price exactly.
CFDs are not suitable for long-term investment. They are designed for short-term trading and speculative purposes.
You should not invest in CFDs unless you have sufficient knowledge and experience to understand the risks involved.

Leverage Risks

Leverage allows you to control a large position with a relatively small amount of capital. While this can magnify profits, it can equally magnify losses.
A small adverse price movement can result in losses that exceed your initial deposit.
Leveraged trading requires you to maintain margin in your account. If your account balance falls below the required margin level, your positions may be forcibly closed (liquidated) at a loss.
High leverage ratios increase both the potential for profit and the potential for significant loss. You should only use leverage if you fully understand the implications.

Market Risks

Financial markets are inherently volatile and subject to rapid and unpredictable price movements.
Economic data releases, interest rate decisions, geopolitical events, and changes in market sentiment can cause significant price gaps and increased volatility.
During major news events or market openings, prices may gap significantly from previous levels, potentially triggering stop-loss orders at worse-than-expected prices (slippage).
Certain market conditions, including periods of low liquidity, may result in wider spreads and difficulty executing trades at desired prices.
Correlation between assets may change during periods of stress, causing portfolio risks to increase beyond expected levels.

Technology Risks

Electronic trading systems, including our platform and internet connectivity, may experience delays, interruptions, or failures.
Hardware or software failures, power outages, or network issues may prevent you from executing trades or managing your positions in a timely manner.
While TradeCircle invests heavily in technology infrastructure, we cannot guarantee uninterrupted access to our trading platform.
You should maintain alternative means of accessing your account and managing your positions in case of technology failures.

Derivatives Risks

Derivatives, including CFDs and other leveraged products, are complex instruments that may involve obligations to make or receive delivery of the underlying asset.
The value of derivatives is affected by changes in the price, volatility, and time to expiry of the underlying asset.
Some derivative products may have limited liquidity, making it difficult to close positions at favourable prices.
Counterparty risk exists in all derivative transactions. While TradeCircle mitigates this through segregation of funds and regulatory compliance, the risk cannot be entirely eliminated.

Additional Warnings

Not Investment Advice

The information provided on our platform is for general informational and educational purposes only. It does not constitute investment advice, financial advice, trading advice, or any other form of professional advice. You should consult with a qualified financial advisor before making any investment decisions.

Past Performance

Past performance is not indicative of future results. Any historical data, backtesting results, or simulated trading results presented on the platform should not be relied upon as a guarantee or prediction of future performance.

Affordability

You should only trade with funds that you can afford to lose. Trading should not be considered a savings or investment vehicle for essential financial goals such as retirement, education, or emergency funds. Never trade with borrowed money or money that is needed for essential living expenses.

Psychological Impact

Trading can be emotionally demanding. The pressure of managing leveraged positions, coupled with the potential for significant financial losses, can cause stress and anxiety. Be aware of the psychological impact of trading and seek support if needed.

Need More Information?

We encourage you to seek independent financial advice before trading.