Overview
Trading derivatives, CFDs, and other complex financial products may not be suitable for all investors.
This risk disclosure summarises important risks that may arise from trading through GMN and explains the mechanisms that may increase loss potential.
You should only trade if you understand the products, the contractual relationships, and the level of risk you are willing and financially able to bear.
- Review whether trading is appropriate based on your age, experience, objectives, and financial resources.
- Assess your risk tolerance before opening or increasing a leveraged position.
- Understand that these risks apply to all jurisdictions where GMN services are available.
1. Leverage and Margin Risk
Leverage means your position size can be much larger than your deposited funds.
A small market movement can produce large gains or large losses relative to your margin.
You may lose all initial margin and additional deposits used to maintain a position.
- You may be required to top up margin quickly if your position moves against your expectation.
- If additional funds are not provided on time, the position may be liquidated at a loss.
- You are responsible for ongoing account monitoring and margin sufficiency.
2. Order and Position Strategy Risk
Risk-control orders such as stop-loss or stop-limit orders are not guaranteed to execute as expected in stressed markets.
Complex spread/straddle and other multi-leg strategies may carry risk equivalent to, or greater than, simple directional positions.
- Order slippage can increase realised losses.
- Orders may fail, be delayed, or partially fill under volatile market conditions.
- Liquidation may occur at levels more adverse than anticipated.
3. Trading Restrictions and Market Disruption
Market disruptions such as liquidity shortages, trading halts, and contract month restrictions can affect entry and exit.
External controls and market interventions may make it difficult or impossible to close or offset positions.
- Price limits, government action, and market-wide stress can increase loss risk.
- If markets are disrupted, execution timelines and pricing quality may change rapidly.
4. Deposited Cash and Property Risk
You should review protections for funds and other property used for trading in your jurisdiction.
Recovery rights in insolvency or bankruptcy scenarios are governed by local law and can vary materially by jurisdiction.
- Identifiable client funds may not always receive immediate or equal treatment in stress scenarios.
- Jurisdictional legal frameworks can materially affect settlement outcomes.
5. Fees, Commissions, and Costs
All trading and account-related costs affect net outcome and can increase losses.
Charges may include commissions, markups, and other explicit or implicit cost components.
- Review all fee schedules and contractual documents before trading.
- In volatile conditions, spread and execution dynamics can magnify effective trading costs.
6. Price Risk
Price movements can be fast, sharp, and one-sided.
In leveraged products, price swings can quickly turn gains into losses.
- Risk of drawdown can exceed expected levels in stressed market periods.
- Positions may need to be reduced or closed under adverse market movement.
7. OTC Trading and Counterparty Risk
Some GMN products may be OTC-based and include a principal model where a counterparty relationship exists.
Price formation, liquidity, and execution terms can differ from exchange-traded products.
- In stressed conditions, quoted pricing may be less favourable than expected.
- Fair value may be harder to assess relative to fully exchange-traded alternatives.
- Execution is subject to applicable agreements, trading conditions, and partner arrangements.
8. Electronic Trading Risk
Trading on electronic systems introduces operational and infrastructure risks.
Hardware or software failure can affect order routing, execution speed, and visibility.
- Orders may be delayed, partially executed, or not executed.
- System-level incidents can occur despite controls and resiliency measures.
9. Off-Exchange Transaction Risk
Off-exchange transactions can present valuation, liquidity, and exit challenges.
It may be difficult to close positions quickly or establish a clear fair-value benchmark in stressed periods.
- Risk profiles can vary significantly by instrument and jurisdiction.
- Before trading, review all policy documents, agreements, and product terms.
Final Reminder
You should only trade with funds you can afford to risk and with full understanding of potential losses.
This document is a summary of key risks, not an exhaustive list.
- If you are uncertain, seek independent financial advice.
- This disclosure may be updated to reflect regulatory or operational changes.
Further Information
For account and product-related legal wording, review: