It is our policy that all clients should be provided with the following risk warning notice in relation to dealing in investment products especially products traded on margin eg Contracts for Difference -CFDs.
This risk warning cannot cover every aspect of risk involved with trading financial products. You must fully understand and accept the risks of any products you wish to trade. Some products may not be suitable for everyone and if you are unsure of your suitability or understanding for any particular product or service, you should seek independent advice from a relevant professional before commencing.
You should not deal in margined products such as CFDs unless you understand their nature and the extent of your exposure to risk. You should also be satisfied that the product is suitable for you in the light of your circumstances and financial position.
Although CFDs can be utilised for the management of investment risk, it may not be suitable for some investors. In deciding whether to trade in CFDs, you should be aware of the following points.
CFDs can only be settled in cash. Investing in a CFD carries the same risks as investing in a future or an option or other derivative product. Transactions in CFDs may also have a contingent liability and you should be aware of the implications of this as set out below.
Contingent liability investment transactions, which are margined, require you to make a series of payments against the purchase price, instead of paying the whole purchase price immediately. If you trade in CFDs, you may sustain a total loss of the margin you deposit with your firm to establish or maintain a position. If the market moves against you, you may be called upon to pay substantial additional margin at short notice to maintain the position. If you fail to do so within the time required, your position may be liquidated at a loss and you will be responsible for the resulting deficit.
Even if a transaction is not margined, it may still carry an obligation to make further payments in certain circumstances over and above any amount paid when you entered the contract.
Financial Spread Betting is a high risk product, when speculating on the direction of an index, price or instrument your losses can exceed the initial deposit and further funds may need to be provided to cover losses.
You should fully understand the nature of Spread Betting and appreciate that the price movement of your underlying bet determines the financial outcome and the profit or losses.
Prices when trading futures or options contracts can vary considerably with the current market. Any premiums are not guaranteed and again may fluctuate in line with the market. You should fully understand the nature and the risk of trading futures and options before proceeding.
You should be fully aware that you may get back less or lose all of the capital invested when trading futures and options contracts.
FX trading within currency markets generally has high market liquidity. Prices can change rapidly in response to a variety of global factors, such as monetary policy releases or natural disasters. You should fully understand the nature of FX trading and appreciate the potential volatility of prices.
You should be fully aware that you may get back less or lose all of the capital invested in foreign exchange trading.
ETFs can vary considerably from the underlying market, this product may not be suitable for all investors and you should not deal unless you understand their nature and your exposure to risk. You should be satisfied that the product is suitable for you in the light of your circumstances and financial position.
You should be fully aware that you may get back less or lose all of the capital invested when trading ETFs.
Any income you receive from an ETF investment may vary and can also fall and rise in line with the market.
ETCs can vary considerably from the underlying market, this product may not be suitable for all investors and you should not deal unless you fully understand their nature and your exposure to risk. You should be satisfied that the product is suitable for you in the light of your circumstances and financial position.
You should be fully aware that you may get back less or lose all of the capital invested when trading ETCs.
ETCs may be subject to less investor protection than ETF’s so you should take this into consideration before proceeding with this product.
Equities (shares) are bought and sold on stock exchanges and their value can both rise and fall in line with market conditions. Shares in smaller companies or in emerging markets may present extra risk and you should take this into consideration.
You should be fully aware that you may get back less or lose all of the capital invested when trading equities.
Before you begin to trade, you should obtain details of all commissions and other charges for which you will be liable for any of TJM’s products or services. If any charges are not expressed in money terms (but, for example, as a percentage of contract value), you should obtain a clear and written explanation, including appropriate examples, to establish what such charges are likely to mean in specific money terms. For example in the case of CFDs, when commission is charged as a percentage, it will normally be as a percentage of the total contract value, and not simply as a percentage of your initial payment.
Stockbroking | Trading | Investment Management
Issued by The TJM Partnership PLC which is authorised and regulated by the Financial Conduct Authority. FCA No. 498199.