Important Risk Disclosure – Futures & Options
Futures and Options (F&O) involve substantial risk and are not suitable for every investor. Derivatives can involve leverage and may result in significant losses. Investors should understand the product and strategy before acting on any derivatives research.
Key Risks
- Leverage can magnify both gains and losses.
- Option buyers may lose the entire premium paid.
- Option writers/sellers may face substantial losses depending on the position and market movement.
- Futures positions can result in losses that may be significantly larger than the initial margin.
- Market volatility can cause rapid changes in the value of a derivatives position.
- Execution prices may differ from expected prices during fast-moving or illiquid markets.
- Stop-loss orders may not always limit losses to the intended amount.
- Time decay and changes in implied volatility can materially affect option values.
Research Does Not Guarantee Profit
Investor Responsibility
Investors should assess their financial capacity, objectives, experience and risk appetite before participating in derivatives. Investors should not take positions solely on the basis of a research recommendation without understanding the associated risks.