Introduction to Risk Disclosure
The purpose of this document is to inform clients of the risks involved in trading leveraged financial products on Exness. By using the platform, clients acknowledge and accept these risks, understanding that both profit and loss are possible outcomes.
Market Volatility and Price Fluctuations
Financial markets are highly volatile, with prices subject to rapid changes due to economic news, political events, and other factors. Such fluctuations can lead to significant gains or losses. In volatile markets, “gapping” and slippage may occur, resulting in orders being filled at prices that differ from expected levels, especially during major economic announcements or market events.
Leverage and Margin Risks
Leveraged trading can amplify both gains and losses. Although leverage allows clients to control larger positions with smaller deposits, it also increases the potential for significant losses. Exness requires clients to maintain margin levels, with automatic position closures occurring if these levels fall below the required threshold. Clients should manage their use of leverage carefully to avoid unexpected losses.
Liquidity Risks
Liquidity levels fluctuate, especially during off-peak hours or major market events, potentially impacting trade execution. In low-liquidity conditions, trades may experience delays, wider spreads, or partial fills. This can lead to unexpected trading costs or losses, particularly with large orders or in volatile market environments.
Technical and Operational Risks
Trading on Exness requires reliable internet connectivity and compatible devices. Technical disruptions, such as connectivity issues or server downtimes, can affect access to the platform and trade execution. Exness is not liable for any losses resulting from technical problems on the client’s end or from external factors beyond Exness’s control.
Regulatory and Legal Risks
Changes in laws or regulations may affect financial markets or restrict trading activities, impacting client positions or available trading instruments. Additionally, regulatory requirements may vary by jurisdiction, potentially affecting clients differently depending on their location. Clients are responsible for understanding and complying with the regulations applicable to their jurisdiction.
Client Responsibility and Risk Management
Clients must fully understand the risks associated with trading leveraged products and use risk management tools such as stop-loss orders to mitigate potential losses. Exness encourages clients to only trade with funds they can afford to lose and to maintain an informed approach to trading decisions.
Past Performance Disclaimer
Past performance of trading instruments or strategies is not indicative of future results. Clients are reminded that previous trading success does not guarantee profitability, and all trading outcomes are subject to market risk.
Disclaimer and Limitation of Liability
Exness Risk Disclosure clarifies that Exness does not provide financial advice, and clients are responsible for their trading decisions and associated outcomes. Exness’s liability is limited, and clients are encouraged to seek independent financial advice if necessary.
Conclusion
Trading on the Exness platform involves considerable financial risk, and clients are encouraged to approach it with a clear understanding of the potential for both gains and losses. The Exness Risk Disclosure serves to provide transparency, helping clients recognize the complexities and inherent risks associated with leveraged trading, market volatility, and other factors. By understanding these risks and using available risk management tools, clients can make more informed decisions that align with their financial goals and risk tolerance.