A Forex Brokerage Built by Traders, for Traders
A Forex Brokerage Built
by Traders, for Traders
:
Risk Disclosure
1. Important Information
1.1. PRIME OTP, an Investment Dealer (Full Service Dealer excluding Underwriting), is regulated by the Financial Services Commission (FSC) in Mauritius under registration number GB24202401 (hereinafter referred to as the "Company").
1.2. This Risk Disclosure Statement aims to provide you with the information necessary to evaluate whether the products we offer are suitable for your financial goals, circumstances, and needs by outlining the risks, rights, and obligations associated with these products.
2. Risk Warnings and Important Considerations
2.1. Trading Contracts for Differences (CFDs) involves significant risk of loss and may not be suitable for all investors. The price movements of underlying assets, such as foreign exchange rates, commodities, or indices, are influenced by various unpredictable global factors. You may lose up to your entire account balance.
2.2. CFDs are highly leveraged speculative instruments and carry significantly greater risk than other investments. Ensure you fully understand their nature and the risks involved before trading.
2.3. CFD trading on various underlying assets, including currency pairs, equity indices, metals, and commodities, is speculative and involves a high risk of capital loss. Your profits and losses depend on the fluctuations in the price of the underlying assets.
2.4. Before engaging in CFD trading, carefully assess its suitability for your financial situation and investment objectives. You should be aware of the following:
2.4.1. Leverage:
- High leverage amplifies both potential profits and potential losses.
- Small price movements in the underlying asset can have a disproportionate impact on your investment.
- If unfavorable price movements occur, losses can quickly exceed your initial deposit.
2.4.2. Margined CFDs:
- CFDs do not grant ownership of the underlying asset.
- Your rights and obligations are limited to financial settlements based on price movements of the underlying asset.
2.4.3. Margin Requirements:
- The Company may adjust margin requirements, potentially requiring you to deposit additional funds to maintain your positions.
2.4.4. Position Monitoring:
- It is your responsibility to monitor your account and ensure sufficient funds are available.
2.4.5. Market Risks:
- Slippage and gaps in volatile markets may lead to trades being executed at unfavorable prices. Market conditions may make it difficult or impossible to close a position.
2.4.6. Credit:
- Margin provisions are not credit facilities.
2.4.7. Counterparty Risk:
- The Company acts as the counterparty to your trades. CFD transactions must be closed with the Company based on its terms and prices.
2.4.8. Segregated Accounts:
- Client funds are held in segregated trust accounts under the Financial Services Act 2007. However, this may not provide complete protection.
2.4.9. Compensation Scheme:
- Trades executed with the Company are not covered under any client compensation scheme under Mauritian law.
2.4.10. Taxation:
- Trades may be subject to taxation. You are responsible for managing your tax obligations and should seek independent tax advice.
2.4.11. Commissions and Spreads:
- Obtain detailed information about all charges before trading. These costs can impact overall profitability.
2.5. We strongly recommend seeking independent professional advice to ensure CFD trading aligns with your financial objectives and circumstances. Past performance does not guarantee future results.
2.6. The distribution of this Risk Disclosure in jurisdictions outside Mauritius may be restricted by law. It is your responsibility to comply with applicable restrictions.
2.7. In the event of any inconsistency between this Risk Disclosure and applicable laws, rules, or regulations, the latter shall prevail.
