Risk Disclosure for Commodity Interest Trading

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Introduction

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This document outlines the significant risks associated with trading commodity interests. It's crucial to assess if such trading aligns with your financial circumstances.

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Key Risks to Consider

1. Commodity Options: Total loss of premium and transaction costs is possible.

2. Trading in Futures and Foreign Currency: Risks include total loss of initial margin funds and additional funds for position maintenance.

3. Margin Calls: Adverse market movements may necessitate quick additional margin funds. Failure to comply can lead to position liquidation and account deficits.

4. Liquidity Risks: Under certain market conditions, it may be challenging to liquidate positions.

5. Contingent Orders: Tools like "stop-loss" or "stop-limit" orders may not effectively limit losses.

6. Spread Positions: These can have risks akin to "long" or "short" positions.

7. Leverage Effects: High leverage can result in significant losses or gains.

8. Managed Account Fees: Be aware of potential substantial management and advisory fees.

Advisory

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Before trading, thoroughly review the disclosure document and understand principal risk factors. Trade funds should be directly placed with a futures commission merchant or retail foreign exchange dealer.

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Risk Disclosure Statement - Futures, Forex, and Options Trading

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Compliance Note

This statement complies with CFTC Regulation 1.55(c) but does not encompass all possible risks in futures, Forex, and options trading.

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Essential Risk Points

1. Substantial Risk: Futures, Forex, and options trading involve significant risk and aren't suitable for everyone.

2. Loss Potential: You may lose all funds deposited for trading, with potential for additional losses.

3. No Insurance Protection: Funds are not insured against bankruptcy or misappropriation.

4. No SIPC Protection: These funds don't have Securities Investor Protection Corporation protection.

5. No Clearing Organization Guarantees: There's no guarantee or insurance from a derivatives clearing organization in case of merchant issues.

6. Commingling of Funds: Your funds might be mixed with others', increasing risk.

7. Merchant Investments: Understand the risks of financial instruments where merchants might invest your funds.

8. Deposits with Affiliates: Increased risks due to merchants depositing funds with affiliates.

9. Consultation Recommended: Discuss fund protections with your merchant.

10. Market Conditions: Certain conditions can make it difficult to liquidate positions.

11. Leverage Impacts: High leverage in futures and Forex can result in significant losses or gains.

Final Advice

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Fully understand the inherent risks before participating in futures, Forex, and options trading.