Risk Disclosure

This Risk Disclosure explains the main risks of trading contracts for difference (CFDs) and other leveraged products offered by IST Markets LTD ("IST Markets", "we", "us"). It cannot describe every risk. Please read it together with our Terms and your client agreement before opening an account.

Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Past performance is not a reliable indicator of future results. Spreads are variable and may widen during news releases and low-liquidity sessions.

A CFD is an agreement to exchange the difference in the price of an underlying asset (such as a currency pair, commodity, index, share or cryptocurrency) between the time a position is opened and the time it is closed. CFDs are traded over the counter (OTC), not on a regulated exchange, and we act as the counterparty to your trades.

• You do not own, and have no rights to, the underlying asset (for example, no voting rights on shares and no wallet for cryptocurrencies).
• CFDs are not transferable and can only be closed with us.
• CFDs are complex and are not suitable for all investors.

Leverage lets you open a position larger than the funds you deposit (the margin). A small price movement against you can therefore cause a large loss relative to your margin, and you can lose all of the money in your account.

• You must maintain sufficient margin at all times. If your equity falls below the required level you may receive a margin call, and your positions may be closed automatically (stop-out) without further notice, at a loss.
• Margin requirements and maximum leverage may change, including before weekends, holidays and major news events, and may apply to open positions.
• Leverage magnifies both gains and losses. Maximum leverage depends on the instrument, account type and your jurisdiction.

Prices of the underlying markets can move quickly and unpredictably, for example around economic releases, central-bank decisions, geopolitical events and market opens. Prices may also 'gap' from one level to another without trading in between, especially over weekends.

• Orders may be executed at a price different from the one requested (slippage), which can be better or worse for you.
• Stop-loss orders limit risk but are not guaranteed: in fast or gapping markets they may be filled at a significantly worse price.
• Spreads are variable and may widen significantly during news releases and low-liquidity sessions.

You can lose all of the funds in your trading account. Whether, and in which circumstances, losses can exceed your deposits is governed by your client agreement; please read it carefully and only trade with money you can afford to lose.

Trading costs reduce your returns and increase your losses. Before you trade, make sure you understand all charges that apply to your account type and instruments, including:

• the spread (difference between buy and sell prices);
• commissions, where applicable to your account type;
• overnight financing (swap) charges or credits on positions held past the daily cut-off;
• currency conversion costs where your account currency differs from the instrument currency; and
• any payment-provider fees for deposits and withdrawals.

• Forex: exchange rates are affected by interest rates, economic data and political events, and some currency pairs have low liquidity.
• Commodities (e.g. gold and oil): prices can react sharply to supply disruptions, inventory data and geopolitical news.
• Indices and share CFDs: prices can gap at the market open and are affected by corporate actions such as dividends and splits, which may result in adjustments to your position.
• Cryptocurrency CFDs: cryptocurrencies are extremely volatile, largely unregulated and can be affected by exchange outages, forks and regulatory action. Large price moves can occur at any time, including weekends.

Trading takes place on electronic platforms such as MetaTrader 5. Internet outages, hardware or software failures, delays in price feeds and third-party system failures may prevent you from placing, modifying or closing orders. You are responsible for keeping your login credentials secure and for any activity carried out using them.

IST Markets provides execution-only services and does not give personal investment, legal or tax advice. Any market commentary, analysis or educational material is general information and does not take your circumstances into account. Past performance is not a reliable indicator of future results.

You should consider whether CFDs are appropriate for you in light of your knowledge, experience, financial situation and objectives, and seek independent advice if necessary. You are responsible for any taxes due on your trading in your country of residence.

If you do not understand any of the risks described here, do not trade. You can contact us at the contact options on istmarkets.com. See also our Terms & Conditions.