Risk Disclosure

General Risk Warning

Trading in financial instruments involves substantial risk of loss and is not suitable for every investor. The value of your investment can go down as well as up, and you may lose all of your invested capital. Past performance is not indicative of future results.

You should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.

Leverage Risks

Leveraged products such as Forex and CFDs carry a significantly higher degree of risk than non-leveraged investments. Leverage amplifies both potential profits and potential losses.

• A small market movement can result in a proportionally larger movement in the value of your position
• Losses can exceed your initial deposit and you may be required to deposit additional funds at short notice
• If the market moves against your position, you may be subject to a margin call requiring immediate payment
• If you fail to meet a margin call, your positions may be liquidated at a loss

Market Risks

Price Volatility

Financial markets can be highly volatile. Prices can fluctuate rapidly in response to economic events, political developments, market sentiment, and other factors. During periods of extreme volatility:

• Prices may gap significantly between trading sessions
• Stop-loss orders may not be executed at your specified price
• Spreads may widen substantially
• Execution of orders may be delayed

Currency Risk

If you trade instruments denominated in a currency other than your base currency, exchange rate fluctuations may affect your profits and losses. Currency movements can be unpredictable and may occur suddenly.

Economic Events

Major economic announcements, central bank decisions, geopolitical events, and other news can cause rapid price movements. Markets may become extremely volatile around such events, increasing the risk of significant losses.

Liquidity Risk

Under certain market conditions, you may find it difficult or impossible to liquidate a position. This may occur when:

• There is insufficient market liquidity
• The underlying market is closed or suspended
• Trading halts have been imposed
• There are circuit breaker triggers due to extreme price movements

During illiquid conditions, you may not be able to close your positions at the price you expect, potentially resulting in larger losses than anticipated.

Technical Risks

Online trading systems are subject to technical failures that may affect your ability to trade. These include:

• Internet connectivity issues
• Server downtime or system failures
• Software bugs or glitches
• Hardware failures on your equipment
• Cyber attacks or security breaches

While we implement robust systems and safeguards, we cannot guarantee uninterrupted access to our platform. You should have contingency plans in place, such as alternative methods to contact us to manage your positions.

Counterparty Risk

When trading with us, you are exposed to counterparty risk. This means that in the event of our insolvency, you may not receive all amounts owed to you. To mitigate this risk:

• We maintain segregated client accounts separate from our operating funds
• We are regulated by the Financial Conduct Authority (FCA)
• Eligible clients may be protected by the Financial Services Compensation Scheme (FSCS)

Our Recommendations

Before you begin trading, we strongly recommend that you:

1. Educate Yourself: Take time to understand how leveraged products work and the risks involved
2. Start Small: Begin with small position sizes until you gain experience
3. Use Demo Accounts: Practice with virtual funds before trading with real money
4. Set Risk Limits: Never risk more than you can afford to lose
5. Use Risk Management Tools: Utilize stop-loss orders and take-profit levels
6. Stay Informed: Keep up to date with market news and economic events
7. Seek Advice: Consult an independent financial advisor if you are unsure

Acknowledgment

By opening an account with BYD Shares and Stocks and engaging in trading activities, you acknowledge that:

• You have read and understood this Risk Disclosure document
• You understand the risks associated with trading leveraged financial instruments
• You are trading at your own risk and of your own volition
• You have the financial capacity to bear the potential losses
• You will not hold BYD Shares and Stocks liable for any losses resulting from your trading activities