RISK DISCLOSURE STATEMENT FOR FUTURES, FOREX, CRYPTO, AND OPTIONS

This brief statement does not disclose all of the risks and other significant aspects of trading in futures, crypto, forex, and options. 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 risk. Trading in futures, crypto, forex, and options is not suitable for many members of the public. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources, and other relevant circumstances.

Testimonials Disclosure

Testimonials appearing on this website may not be representative of other clients or customers and are not a guarantee of future performance or success.

Futures

Effect of Leverage or Gearing
Transactions in futures carry a high degree of risk. The amount of initial margin is small relative to the value of the futures contract, so that transactions are “leveraged” or “geared.” A relatively small market movement 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 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 increased, you may be called upon to pay substantial additional funds on short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss, and you will be liable for any resulting deficit.

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 losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders. Strategies using combinations of positions, such as “spread” and “straddle” positions, may be as risky as taking simple “long” or “short” positions.

Crypto

Trading cryptocurrencies carries a high level of risk and may not be suitable for all investors. The high degree of market volatility and the potential for losses exceeding the initial investment mean that only experienced investors with a high risk tolerance should engage in crypto trading. Before deciding to invest in crypto assets, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment, and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with crypto trading and seek advice from an independent financial advisor if you have any doubts.

Forex

Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment, and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.

Options

Variable degree of risk
Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (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 must increase for your position to become profitable, taking into account the premium and all transaction costs.

Additional risks common to futures, crypto, forex, and options

Terms and conditions of contracts
You should ask The Lab Trading about the terms and conditions of the specific futures, crypto, forex, or options which you are trading and associated obligations. Under certain circumstances, the specifications of outstanding contracts may be modified by the exchange or clearing house to reflect changes in the underlying interest.

Suspension or restriction of trading and pricing relationships
Market conditions and/or the operation of the rules of certain markets may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions. This is particularly true in highly volatile crypto markets.

Deposited cash and property
You should familiarize yourself with the protections accorded money or other property you deposit for domestic and foreign transactions, particularly in the event of a firm insolvency or bankruptcy.

Commission and other charges
Before you begin to trade, you should obtain a clear explanation of all commission, fees, and other charges for which you will be liable. These charges will affect your net profit or increase your loss.

Currency risks
The profit or loss in transactions in foreign currency-denominated contracts 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.

Trading facilities
Most trading facilities are supported by computer-based 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.

Electronic trading
Trading on an electronic trading system may differ from traditional trading methods. You will be exposed 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.

Off-exchange transactions
In some jurisdictions, and only then in restricted circumstances, firms are permitted to effect off-exchange transactions. These transactions may involve increased risks. Off-exchange transactions may be less regulated or subject to a separate regulatory regime.

By participating in trading with The Lab Trading, you acknowledge understanding and accepting these risks