General Risk Warning

GLStock provides access to a range of trading products, including complex derivative products that are traded on margin. Trading derivative products carries a high level of risk and may not be suitable for all investors.

Before trading complex derivative products such as contracts for difference ("CFDs") and foreign exchange, you should consider whether you fully understand how they work and the risks involved, and seek independent financial advice where necessary. You should also satisfy yourself that you have adequate financial resources to bear those risks. You should not invest money that you cannot afford to lose.

This notice cannot disclose every risk associated with the instruments and services available through GLStock. It is provided to help you understand the principal risks so that you can decide, on an informed basis, whether those risks are acceptable to you.

Leverage Trading

CFDs and margin foreign exchange contracts are leveraged products, which means that an initial deposit, or "margin", must be lodged before a position can be opened. That margin represents only a small proportion of the overall value of your position. The minimum margin required to open a trade will typically depend on the underlying instrument being traded.

Leverage allows you to gain substantial exposure to a financial market while committing a relatively small amount of your own capital. This magnifies the scope for gains, but it magnifies losses to the same degree. Small movements in the market can produce a proportionately much larger movement in the value of your investment, and there is a high risk of losing money rapidly if those movements go against your position. We recommend that risk-mitigating tools such as automatic stop losses are applied to positions in order to limit potential losses.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Margin Calls and Stop-Out

Market movements against your position may reduce the equity in your account below the level required to maintain that position. In such circumstances you may be required to provide additional funds at short notice. If additional funds are not provided, open positions may be closed automatically at the prevailing market price without further reference to you, and any resulting loss will be borne by you.

Cryptocurrency CFDs

Trading in cryptocurrency CFDs involves significant risks in addition to the general risks associated with transactions in CFDs. Cryptocurrencies are virtual assets which are not issued or backed by a central bank or by any government. They can experience extreme price volatility which, in combination with leverage, can pose a significant risk of loss to your capital. Cryptocurrency markets may also operate outside conventional trading hours and may be subject to abrupt changes in regulatory treatment. You should be aware of these risks and consider carefully whether investing in cryptocurrency CFDs is appropriate for you.

Past and Future Performance

Past performance of any investment is not a guarantee of future results. The value of investments can fall as well as rise and you may receive back less than you originally invested. Similarly, any forecast derived from an analytical estimate of financial market conditions should not be treated as a reliable indicator of future performance.

Foreign Exchange

Transactions in foreign exchange contracts carry a high degree of risk and may not be suitable for all investors. The gearing, or leverage, frequently obtainable in foreign exchange trading means that a relatively small market movement can result in a proportionately larger movement in the value of your investment. Before deciding to trade foreign exchange you should consider carefully whether you have the appropriate level of experience and appetite for risk. You may sustain a loss of some or all of your initial investment and should therefore not invest more money than you can afford to lose.

Futures

Transactions in futures involve an obligation to make, or to take, delivery of the underlying asset of the contract at a future date or, in certain cases, to settle the position in cash. They carry a high degree of risk. The gearing, or leverage, frequently obtainable in futures trading means that a small deposit or down payment can lead to large losses as well as gains, and that a relatively small market movement can produce a proportionately much larger movement in the value of your investment, which may work against you as readily as in your favour.

Options

There are many different types of option, each with different characteristics and subject to different conditions.

Buying Options

Buying an option involves less risk than selling one, because if the price of the underlying asset moves against you the option can simply be allowed to lapse. The maximum loss is limited to the premium paid, together with any commission or other transaction charges.

Writing Options

When writing an option, the risk involved is considerably greater than when buying one. You may be liable to provide margin in order to maintain your position, and a loss may be sustained well in excess of any premium received. By writing an option you accept a legal obligation to purchase or to sell the underlying asset if the option is exercised against you, however far the market price has moved from the exercise price. If you do not own the underlying asset, known as writing an uncovered call option, the risk can be unlimited. Only experienced persons should contemplate writing uncovered options, and then only after obtaining full details of the applicable conditions and of the potential risk exposure.

Market, Liquidity and Gapping Risk

Market conditions such as low liquidity, high volatility, the release of economic data or the opening of a market after a weekend or a holiday may cause prices to move sharply from one level to another without trading at intermediate levels. In such circumstances an order, including a stop-loss order, may be executed at a price materially less favourable than the level at which it was set, and spreads may widen significantly.

Technology and Execution Risk

Trading through an online platform exposes you to risks associated with the platform and with the systems that support it, including interruption of internet connectivity, hardware or software failure, delayed or failed transmission of orders and the unavailability of quotes. GLStock does not warrant uninterrupted access to any trading platform and is not liable for losses arising from circumstances outside its reasonable control.

Counterparty, Currency and Tax Risk

Funds you deposit are held with credit institutions selected by GLStock and may not be segregated from other funds. Where you trade an instrument denominated in a currency other than the base currency of your account, changes in exchange rates may affect your profit or loss independently of the performance of the instrument itself. The tax treatment of your trading depends on your individual circumstances and on the law of your country of residence, may change over time, and remains your sole responsibility.

No Investment Advice

GLStock provides execution-only services. No material made available through our website or platforms constitutes investment advice, a personal recommendation, or an offer or solicitation to buy or sell any instrument. Any decision you take to open or close a position is taken solely on your own judgement and at your own risk.

Acknowledgement

By opening an account and trading with GLStock you confirm that you have read and understood this Risk Disclosure Policy, that you have assessed the risks described in it, and that you accept them. If any part of this notice is unclear, please contact us at [email protected] before you trade.