SECURITIES AND FUTURES ACT
(Cap. 289)
SECURITIES AND FUTURES
(LICENSING AND CONDUCT OF BUSINESS)
REGULATIONS (Rg 10)
抚军将军RISK DISCLOSURE STATEMENT REQUIRED TO BE FURNISHED UNDER REGULATION 47E(1) AND TO BE KEPT UNDER REGULATION 39(2)(c)
BY THE HOLDER OF A CAPITAL MARKETS
SERVICES LICENCE TO TRADE IN FUTURES
CONTRACTS OR LEVERAGED FOREIGN
EXCHANGE CONTRACTS FORM 13
1. This statement is provided to you in accordance with regulation 47E(1) of the Securities and Futures (Licensing and Conduct of Business) Regulations (Rg 10).
2. This statement does not disclo all the risks and other significant aspects of trading in futures, options and leveraged foreign exchange. In light of the risks, you should undertake such transactions only if you understand the nature of the contracts (and contractual relationships) into which you are entering and the extent of your exposure to the risks. Trading in futures, options and leveraged foreign exchange may not be suitable for many members of the public. You should carefully consider whether such trading is appropriate for you in the light of your experience, objectives, financial resources and other relevant circumstances. In considering whether to trade, you should be aware of the following:
(a) Futures and Leveraged Foreign Exchange Trading
(i) Effect of ‘Leverage’ or ‘Gearing’
Transactions in futures and leveraged foreign exchange carry a high degree of risk. The amount of initial margin is small relative to the value of the futures contract or leveraged foreign exchange transaction so that the transaction is highly ‘leveraged’ or ‘geared’. A relatively small market movem科技作文
ent will have a proportionately larger impact on the funds you have deposited or will have to deposit; this may work against you as well as for you. You may sustain a total loss of the initial margin funds and any additional funds deposited with the firm to maintain your position. If the market moves against your position or margin levels are incread, you may be called upon to pay substantial additional funds on short notice in order to maintain your position. If you fail to comply with a request for additional funds within the specified time, your position may be liquidated at a loss and you will be liable for any resulting deficit in your account.
(ii) Risk-Reducing Orders or Strategies
The placing of certain orders (e.g. ‘stop-loss’ orders, where permitted under local law, or ‘stop-limit’ orders) which are intended to limit loss to certain amounts may not be effective becau market conditions may make it impossible to execute such orders. At times, it is also difficult or impossible to liquidate a position without incurring substantial loss. Strategies using combinations of positions, such as ‘spread’ and ‘straddle’ positions may be as risky as taking simple ‘long’ or ‘short’ positions.
(b) Options
坚持好干部标准
(i) Variable Degree of Risk
Transactions in options carry a high degree of risk. Purchars and llers of options should familiari themlves with the type of options (i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options would have to increa for your position to become profitable, taking into account the premium paid and all transaction costs.
The purchar of options may offt its position by trading in the market or exerci the options or allow the options to expire. The exerci of an option results either in a cash ttlement or in the purchar acquiring or delivering the underlying interest. If the option is on a futures contract or leveraged foreign exchange transaction, the purchar will have to acquire a futures or leveraged foreign exchange position, as the ca may be, with associated liabilities for margin (e the ction on Futures and Leveraged Foreign Exchange Trading above). If the purchad options expire worthless, you will suffer a total loss of your investment which will consist of the option premium paid plus transaction costs. If you are contemplating purchasing deep-out-of-the-money options, you should be aware that, ordinarily, the chance of such options becoming profitable is remote.
超好看的微信头像Selling (‘writing’ or ‘granting’) an option generally entails considerably greater risk than purchasing options. Although the premium received by the ller is fixed, the ller may sustain a loss well in excess of the amount of premium received. The ller will be liable to deposit additional margin to maintain the position if the market moves unfavourably. The ller will also be expod to the risk of the purchar exercising the option and the ller will be obligated to either ttle the option in cash or to acquire or deliver the underlying interest. If the option is on a futures contract or a leveraged foreign exchange transaction, the ller will acquire a futures or leveraged foreign exchange position, as the ca may be, with associated liabilities for margin (e the ction on Futures and Leveraged Foreign Exchange Trading above). If the option is ‘covered’ by the ller holding a corresponding position in the underlying futures contract, leveraged foreign exchange transaction or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited.
Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of the purchar to margin payments not exceeding the amount of the premium. The purchar is still subject to the risk of losing the premium and transaction costs. When the option is exercid or expires, the purchar is responsible for any unpaid premium outstanding at that time.
(c) Additional Risks Common to Futures, Options and Leveraged Foreign Exchange Trading
芦苇海(i) Terms and Conditions of Contracts
You should ask the corporation with which you conduct your transactions for the terms and conditions of the specific futures contract, option or leveraged foreign exchange transaction which you are trading and the associated obligations (e.g. the circumstances under which you may become obligated to make or take delivery of the underlying interest of a futures contract or a leveraged foreign exchange transaction and, in respect of options, expiration dates and restrictions on the time for exerci). Under certain circumstances, the specifications of outstanding contracts (including the exerci price of an option) may be modified by the exchange or clearing hou to reflect changes in the underlying interest.
(ii) Suspension or Restriction of Trading and Pricing Relationships
Market conditions (e.g. illiquidity) or the operation of the rules of certain markets (e.g. the suspension of trading in any contract or contract month becau of price limits or ‘circuit breakers’) may increa the risk of loss by making it difficult or impossible to effect transactions or liquidate/offt positions. If you have sold options, this may increa the risk of loss.
Further, normal pricing relationships between the underlying interest and the futures contract, and the underlying interest and the option may not exist. This can occur when, e.g., the futures contract underlying the option is subject to price limits while the option is not. The abnce of an underlying reference price may make it difficult to judge ‘fair’ value.
(iii) Deposited Cash and Property
You should familiari yourlf with the protection accorded to any money or other property which you deposit for domestic and foreign transactions, particularly in a firm’s insolvency or bankruptcy. The extent to which you may recover your money or property may be governed by specific legislation or local rules. In some jurisdictions, property which had been specifically identifiable as your own will be pro-rated in the same manner as cash for purpos of distribution in the event of a shortfall.
(d) Commission and Other Charges
Before you begin to trade, you should obtain a clear explanation of all commissions, fees and other charges for which you will be liable. The charges will affect your net profit (if any) or increa your loss.
(e) Transactions in Other Jurisdictions
Transactions on markets in other jurisdictions, including markets formally linked to a domestic market, may expo you to additional risk. Such markets may be subject to a rule which may offer different or diminished investor protection. Before you trade, you should enquire about any rules relevant to your particular transactions. Your local regulatory authority will be unable to compel the enforcement of the rules of the regulatory authorities or markets in other jurisdictions where your transactions have been effected. You should ask the firm with which you conduct your transactions for details about the types of redress available in both your home jurisdiction and other relevant jurisdictions before you start to trade.
(f) Currency Risks
The profit or loss in transactions in foreign currency-denominated futures and options contracts (whether they are traded in your own or another jurisdiction) will be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency.
肉片炒黄瓜(g)Trading Facilities
Most open-outcry and electronic trading facilities are supported by computer-bad component systems for the order-routing, execution, matching, registration or clearing of trades. As with all facilities and systems, they are vulnerable to temporary disruption or failure. Your ability to recover certain loss may be subject to limits on liability impod by the one or more parties, namely the system provider, the market, the clearing hou or member firms. Such limits may vary. You should ask the firm with which you conduct your transactions for details in this respect.
(h) Electronic Trading
Trading on an electronic trading system may differ not only from trading in an open-outcry market but also from trading on other electronic trading systems. If you undertake transactions on an electronic trading system, you will be expod to risks associated with the system including the failure of hardware and software. The result of any system failure may be that your order is either not executed according to your instructions or not executed at all.
(i) Off-Exchange Transactions
In some jurisdictions, firms are permitted to effect off-exchange transactions. The firm with which you conduct your transactions may be acting as your counterparty to the transaction. It may be diffic
ult or impossible to liquidate an existing position, to asss the value, to determine a fair price or to asss the exposure to risk. For the reasons, the transactions may involve incread risks. Off-exchange transactions may be less regulated or subject to a parate regulatory regime. Before you undertake such transactions, you should familiari yourlf with the applicable rules and attendant risks.
ACKNOWLEDGEMENT OF RECEIPT OF THIS RISK DISCLOSURE STATEMENT
断了线的风筝This acknowledges that I/we have received a copy of the RISK DISCLOSURE STATEMENT and understand its contents.
Signature of
customer
Name of customer
Designation*
Corporation name*
Signature of witness
Name of witness
Date
*For corporations only.
Note:
高粱米怎么煮粥“Margin” means an amount of money, curities, property or other collateral, reprenting a part of the value of the contract or agreement to be entered into, which is deposited by the buyer or the ller of a futures contract or in a leveraged foreign exchange transaction to ensure performance of the terms of the futures contract or leveraged foreign exchange transaction.
