Legal/Privacy/Terms of Use

PLEASE READ THIS TERMS OF USE AGREEMENT CAREFULLY BEFORE USING OUR SERVICES.

 

Legal information

Any person or entity that makes use of this website by means of viewing, sharing and/or purchasing any or all products and services offered herein, is subsequently refered to as the "User". The owner of this website, TraderMakers, and its subsidiaries and affiliates are subsequently and collectively referred to as the "Company".

 

With absolutely no exception, the User is subject to the following terms and conditions, which are deemed to be accepted each time this website is used. Use of, and/or access to, constitutes unconditional agreement to the Terms of Use. The Company reserves the right to amend the Terms of Use at any time.

Since Users are bound by these Terms of Use, they should periodically refer to them in this document and elsewhere on the web site.

 

Summary

The content of this website is based on the information researched by its authors, and is provided and published in good faith. The Company-TraderMakers and its affiliates, subsidiaries and dba entities DOES NOT provide financial advice, and no statement or information presented in this website shall be taken as such.

 

TraderMakers is an educational company that provides traders with software tools relevant to trading the financial markets yet they are absolutely NOT intended to provide all the information required for trading. The information and material contained herein is not a substitute for the obtaining of advice from a licensed adviser or dealer in securities and is not suitable to be acted upon as investment advice nor is it intended to encourage or induce persons to enter into securities transactions or particular securities transactions otherwise than as aforesaid. Before making any decision on the basis of this information, you need to consider with or without the assistance of an investment advisor whether the advice is appropriate in light of the particular investment needs, objectives and financial circumstances of the User.

Trading involves a higher level of risk than other common forms of capital management such as long-term investments in stocks, bonds or mutual funds. Attaining proficiency in trading may take a long time to develop depending on the user's capacity to understand the high degree of risk involved, aptitude for proper risk management to preserve capital, and potential to develop all necessary skills to create profitable results. The user must understand that actions taken in trading result in the loss of all capital and in cases that involve the use of extended buying power and margin, one may lose all capital and subsequently assume the liability of owing additional funds that are substantially more than the initial capital.

 


The Company accepts no liability, and CANNOT be held liable whatsoever for any loss, damage or injury be it financial or personal, incurred by the use of or reliance on any service, software, program, product or statement/information within this website. Visitors to this web site, and users/purchasers of products/services sold on this web site should SEEK ADVICE FROM A LICENSED FINANCIAL ADVISER before purchasing financial education or software and/or making investment decisions. It should not be assumed that the methods, techniques, or indicators presented in our websites will be profitable or that they will not result in losses. 

 

Before deciding to trade the financial markets you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Trading is highly speculative and it is not uncommon to lose money. There is considerable exposure to risk in any form of trading, including, but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price or liquidity of a security or asset. Past performance is not necessarily indicative of future results. There are no guarantees of profit or of avoiding losses when trading. Testimonials are not indicative of future success and have not been independently verified.

 

 

Terms & Conditions, Investment Advice 
The Company has made every effort to ensure the reliability of information, materials, products and services contained on the Website. The information, materials, products and services on the Website are provided to the User "as is", in good faith and are believed by the Company to be reliable and accurate at the time of providing them. The Website and all its contents are prepared for educational and general information purposes only, and as such, the specific needs, investment objectives or financial situation of any particular user have not been taken into consideration. THE USER IS FULLY RESPONSIBLE FOR ANY INVESTMENT OR TRADING DECISIONS HE/SHE MAKES, AND SUCH DECISIONS SHOULD BE BASED SOLELY ON HIS/HER EVALUATION OF THEIR OWN FINANCIAL CIRCUMSTANCES, INVESTMENT OR TRADING OBJECTIVES, RISK TOLERANCE AND LIQUIDITY NEEDS. You should therefore talk with your financial planner or adviser before acting on any information or services presented on this Website. Before deciding to trade the financial markets you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Trading is highly speculative and it is not uncommon to lose money. There is considerable exposure to risk in any form of trading, including, but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price or liquidity of a security or asset. Past performance is not necessarily indicative of future results. There are no guarantees of profit or of avoiding losses when trading.

None of the Services offered are intended as investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security, or fund. The Services should not be relied upon for purposes of transacting securities or other investments. We cannot and do not assess or guarantee the suitability or profitability of any particular investment, or the potential value of any investment or informational source. You bear responsibility for your own investment research and decisions, and should seek the advice of a qualified securities professional before making any investment.

To the extent permitted by law, the Company and its employees, agents and authorized representatives exclude all liability for any loss or damage (including indirect, special or consequential loss or damage) arising from the use of, or reliance on, any information on the Website whether or not caused by any negligent act or omission.

 

Links

The User may only provide a link to this Website from a website provided that you link to the home page www.tradermakers.com. The User may view the Website and its contents using a web browser. The User may make copies of portions of this Website solely for his/her own information, research or study provided that you do not modify the copy from how it appears on the Website and include the copyright notice appearing elsewhere on this page on the copy that you make. Save for the foregoing, you must not reproduce, frame (by whatever means), link to or otherwise use any of the material on the site without first obtaining the written permission by the Copyright Act 1968 (C) or similar copyright legislation. The material on this Website is protected by US Copyright Legislation and by the copyright legislation applying in other countries.

 

 

Accuracy of Information

The Company uses reasonable care to make sure that the information appearing on this site is accurate and up-to-date. However, errors and omissions can occur and the user should not take the accuracy of the information for granted but should check directly with our representatives. None of the material contained in this Site is to be relied upon as a statement or representation of fact. 
The Company CANNOT be held liable for any loss of profits or contracts or any direct, indirect or consequential loss, business interruption or loss of data or programs arising out of or in connection with the use of the information either contained within this site or from any of its hyperlink connections. 
The Company may also make improvements and/or changes to the content of this information at any time without notice. All services, products and product price specifications contained within this website are subject to change without notice.


INFORMATION PROVIDED ON THIS WEBSITE IS PROVIDED "AS IS" WITHOUT ANY WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, OR NON-INFRINGEMENT, AS SUCH EXCLUSIONS OF IMPLIED WARRANTIES SHALL APPLY PURSUANT TO APPLICABLE LAWS AND REGULATIONS.

 

 

Interruptions and omissions in service
The Company strives to ensure that the standard of this website remains high and to maintain the continuity of it, the Internet is not an inherently stable medium, and errors, omissions, interruptions of service and delays may occur at any time. The Company do not accept any liability arising from any such errors, omissions, interruptions or delays or any ongoing obligation or responsibility to operate this website (or any particular part of it) or to provide the service offered on this website. We may vary the specification of this site from time to time without notice.


Your use of our website
You may only use this website for lawful purposes when seeking information. The User must not under any circumstances seek to undermine the security of the Site or any information submitted to or available through it. In particular, but without limitation, User must not:

  • seek to access, alter or delete any information to which you do not have authorised access;

  • seek to overload the system via spamming or flooding;

  • take any action or use any device, routine or software to crash, delay, damage or otherwise interfere with the operation of this Site; or

  • attempt to decipher, disassemble or modify any of the software, coding or information comprised in the Site.

 

Links to third party websites
The Company cannot and has not reviewed all pages of the sites linked to this Site and therefore cannot be liable for their content. Users link to other sites at their own risk and use such sites according to the terms and conditions of use of such sites. This website provides links only as a convenience, and the inclusion of any link does not imply endorsement by the Company or this Site. On this Site you may be offered automatic links to other sites which we hope will be of interest to you. We do not accept any responsibility for or liability in respect of the content of those sites, the owners of which do not necessarily have any connection, commercial or otherwise, with us. Using automatic links to gain access to such sites is entirely at your own risk.

 

Your use of our Products and Services/Membership

All of our products and services are offered exclusively under a private membership and exist for educational and imformation purposes only.

 

Copyright
No part of this website may be copied or imitated in whole or in part. No logo, graphic, sound or image from this website may be copied or re-transmitted unless expressly permitted in writing by the Company (These prohibitions are without limitation to the legal rights of the Company).


The rights in material on this site are protected by international copyright, software and trademark laws and you agree to use this site in a way which does not infringe these rights. You may copy material on this site for your own private or domestic purposes, but no copying for any commercial or business use is permitted.

 

Trademark Information

The trademarks, and logos displayed on this website are (I) owned by their respective owners, or (II) used by TraderMakers under licenses from their respective owners, or (III) are the property of other third parties. The user is not permitted to use these trademarks or logos without the prior written consent of the Company or the applicable third party.

 

Intellectual Property

TraderMakers' website, mobile and tablet device sites and applications (collectively, the "Website"), the Service, the content, and all intellectual property therein (including but not limited to authors, patents, database rights, trademarks and service marks) are owned by the Company or third parties, and all right, title and interest therein and thereto shall remain the property of the Company and/or such third parties. The Website and Service may be used only for the purpose permitted by these Terms and Conditions. User may view and retain a copy of the pages of the Website only for His/Her own personal, non-commercial use. User may not duplicate, publish, modify, create derivative works from, participate in the transfer of, post on the World Wide Web, or in any way distribute or exploit the Website, the Service or any portion thereof for any public or commercial use without the express written consent of the Company. User shall not (i) use any robot, spider, scraper or other automated device to access the Website or Service; or (ii) remove or alter any author, trademark or other proprietary notice or legend displayed on the Website (or printed pages thereof). The Company's registered trade names, and other names and indicia of ownership of the Service are the exclusive marks of the Company or other third parties. Other product, service and company names appearing on the Website may be trademarks of their respective owners.

 

Liability
The User assumes all risk in liability for using this website and/or for any products or services offered herein, including liability for any loss (whether direct or indirect, for loss of business, revenue or profits, wasted expenditure, corruption or destruction of data or for any other indirect or consequential loss whatsoever. The Company exclude any such liability, whether in contract, tort (including for negligence) or otherwise. The Company hereby exclude all representations, warranties and conditions relating to this website and your use of it to the maximum extent permitted by law.

 

Indemnification/Hold Harmless
The User fully agrees to indemnify and hold the Company harmless, and to keep it indemnified against all costs, expenses, claims, losses, liabilities or proceedings arising from use or misuse by you of this site and any of its services. 

 

Changes to terms and conditions and invalidity
These website terms and conditions may be changed by us at any time. You will be deemed to accept the terms and conditions (as amended) when you next use this site following any amendment.

If any provision of these terms and conditions is held to be invalid by a court of competent jurisdiction, such invalidity shall not affect the validity of the remaining provisions, which shall remain in full force and effect. 

 

 

Trading DISCLAIMER

Direct investing in the stock market can result in financial loss. Historical results are no guarantee of future returns. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. All information on this website is for information and educational purposes only, and is not intended to give you financial advice. Any statements about income, expressed or implied, do NOT represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. Unlike an actual performance record, simulated results do not represent actual trading. Hypothetical results have many inherent limitations and are not predictive of actual success. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trader. Also, since the trade examples shown have not actually been executed, the results may have over or under compensated for impact, if any, of certain market factors, such as lack of liquidity. By being on the TraderMakers website and all other related social media or blogging platforms, you accept full responsibility for your actions, trades, profit and loss. You also agree to hold the Company, its directors, employees and agents, and any authorized distributors harmless in any and all ways. The usage of this website constitutes acceptance of these terms and the user agreement.

All TRADING involves high risk and YOU can LOOSE a substantial amount of money, no matter what method you use. All trading involves high risk. By paying for any of the products and/or services described the client agrees to this services contract and all its parts without exception.

 

Futures Trading Disclaimer: Transactions in securities futures, commodity and index futures and options on futures carry a high degree of risk. The amount of initial margin is small relative to the value of the futures contract, meaning that transactions are heavily "leveraged". 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 clearing 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 -at your broker's discretion- may be liquidated at a loss and you will be liable for any resulting deficit.

 

USA: Commission Rule 4.41(b)(1)(I) hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

 

ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

THERE IS RISK OF LOSS IN ALL TRADING. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. ALL RESULTS ARE HYPOTHETICAL. NO IMPLICATION IS BEING MADE THAT ANYONE UTILIZING ANY OF THE SEVICES OF TRADERMAKERS HAS OR CAN OBTAIN SUCH PROFITS AND RESULTS. THIS INFORMATION IS NOT A RECOMMENDATION TO BUY OR SELL AT THIS TIME, BUT MERELY A PRESENTATION OF TRADES STRATEGIES. THE INFORMATION CONTAINED HEREIN HAS BEEN OBTAINED FROM SOURCES BELIEVED RELIABLE, BUT IS NOT GUARANTEED AS TO THE ACCURACY OR COMPLETENESS. PLEASE CHECK MARKET FUNDAMENTALS AND TECHNICAL CONDITIONS BEFORE CONSIDERING THESE OR ANY TRADES.

 

UNDER NO CIRCUMSTANCES WILL THE COMPANY BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES WITH RESPECT TO THE SUBJECT MATTER OF THE AGREEMENT, LOSS OF DATA OR LOST PROFITS, REGARDLESS OF WHETHER OR NOT SUCH DAMAGES COULD HAVE BEEN FORESEEN OR PREVENTED.

 

 

Software Products Disclaimer

The software products provided on this website are third party and shall always be treated as such. As a third party reseller, the Company is not responsible or liable for any claim or issue arising from the use or misuse of third party software. Any issues with the software products offered herein should be directed to and are the sole responsibility of the provider. As a visitor to this website and/or user of any software products from tradermakers.com, you do hereby release, forever discharge and agree to forever hold the Company and its directors, employees, agents and authorized representatives, and any company it may be involved with, harmless from any liability, claims and demands of any nature whatsoever, for injury, damages, (including but not limited to financial losses), and expenses, of any nature whatsoever, whether such claim or claims are based upon negligence, breach of guarantee or warranty, strict liability, contract, breach of fiduciary duty, or otherwise, which may be incurred by the user as of the use of or reliance upon these software products. Due to the original and inherent nature of all software products, all sales are final and accept no exchanges or refunds.

 

 

Chat Room Information

When available, the access to a training chat room is private, and shall be granted to paid subscribers only. The Company reserves the right to operate this medium at its own discretion. Proprietary material and copyrighted information is displayed while the room is in session. Any type of recording or "screen capture" by the users while in session is absolutely prohibited. Unauthorized use, reproduction, dissemination, or communication of such material or any information contained therein is strictly prohibited.

All the information provided including but not limited to graphics, logos, charts, trading platforms and other devices are presented at the discretion of the moderator. Everything is presented in a virtual environment and for educational purposes only. At no time, anything mentioned or done during the live access constitutes a recommendation to buy/sell any type of investment vehicle. The Company accepts NO liability whatsoever for any loss, damage or injury be it financial or personal, incurred by the use of or reliance on this service.

Any alerts or information you may receive in our chat room by email or other transmission are purely for educational purposes. No information or alert is intended to be considered as advice, and is not a solicitation to buy or sell. TraderMakers is not a trade calling or advisory service. Further, affiliates, employees, contractors, chat room moderators may or may not have positions or effect transactions in the securities or commodities mentioned or described, and may also employ trading strategies that may be consistent or inconsistent with the strategies described, on the website, in the educational series, or in the chat room. The generic market recommendations provided by us are based solely on the judgment of our personnel and should be considered as such. You acknowledge that you enter into any transactions relying on your own judgment. Any market recommendations provided by us are generic only and may or may not be consistent with the market positions or intentions of our firm and/or our affiliates. Any opinions, news, research, analyses, prices, or other information contained on this website are provided as general market commentary, and do not constitute investment advice.There are risks associated with utilizing an Internet-based trading system including, but not limited to, the failure of hardware, software, and Internet connection. We are not responsible for communication failures or delays when trading via the Internet. We are not liable for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The content on this website is subject to change at any time without notice.

Results are hypothetical. Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Our services are for educational purposes only. 

 

Non-Disclosure

The User understands and accepts the Company's NDA agreement.

 

Competing Businesses

You agree you are not a competitor or affiliated in any way with a competing business or entity, and you have no plans of engaging in business that competes with The Company in the future. If you are a competitor or affiliated with a competitor, you agree to notify us of your identity and affiliation before a live demo or chat room session begins.  All who receive information from us and/or attends any educational or chat room session agree to our NDA Agreement.  Violators will be prosecuted.

 

Non-Transferable

The User will be provided a unique user name and password combination to access our chat room, which shall be treated exclusively as personal and are non-transferable. Allowing anyone else but the primary holder to access our chat room or services without TraderMaker's previous written consent is prohibited. Failure to obtain consent, TraderMakers reserves the right to terminate such person's account and suspend privileges indefintely.

 

Inactivity

In the event that any User of our products/services has been voluntarily or involuntarily idle, or shows 12 consecutive months of inactivity through means of chat room login, email or phone contact, they may -at the sole discretion of the Company- forfeit their subscription rights and the membership should be deemed terminated. The Company will not be liable or responsible to accomodate the subscriber needs after such period of inactivity. The User understands and acknowledges that inactivity constitutes abandonment and surrender his/her right to continue on the program. The Company will make every effort to accomodate requests to reinstate accounts. If reinstated, a $250 fee will be collected and a $50 recurring monthly fee to obtain room access.

 

Credit Card Charges

All amounts shown on the website are in US dollars; all payments made are in US dollars.Because we are a US-based corporation, some foreign customers may be subject to foreign credit processing fees, imposed by their credit card companies. Be sure to check with your own credit card provider to know if these charges apply

 

Delivery Method

On-line: E-mail, Web and Download. Any print materials including instruction manuals are electronically delivered files, downloadable documents and online videos. The Software products are available as electronically delivered files, downloadable by email or web.

 

Return Policy

Due to the proprietary and copyrighted nature of all of our products/services, all sales are final and there are no returns or exchanges for products or services rendered. Once the materials have been accessed by email download or on our website you are deemed to have taken full possession of the product . Any unpaid balances owing beyond 30 days will be turned over to a collection agency, please be aware that this can have a negative impact on your credit rating.

 

Confidentiality

Our programs may contain information of proprietary and confidential nature. At times discretionary methodologies, as well as other examples -factual or non factual- may or may not be presented to the subscriber. By using any of our services, you agree to maintain all information obtained in a confidential manner and for personal use only. The Company and its employees, agents and authorized representatives are excluded from all liability for any loss or damage (including indirect, special or consequential loss or damage) arising from the use of, or reliance on, any information obtained during the confidentiality of your training.

 

Disputes

YOUR SOLE REMEDY FOR DISSATISFACTION WITH THE SERVICES AND/OR CONTENT CONTAINED WITHIN THE SERVICES IS TO STOP USING THE SERVICES. THE SOLE AND EXCLUSIVE MAXIMUM LIABILITY TO COMPANY FOR ALL DAMAGES, LOSSES, AND CAUSES OF ACTION (WHETHER IN CONTRACT, TORT (INCLUDING, WITHOUT LIMITATION, NEGLIGENCE), OR OTHERWISE) SHALL NOT EXCEED THE TOTAL AMOUNT PAID BY YOU, IF ANY, LESS APPLICABLE FEES, IF ANY, TO ACCESS THE SERVICES. 

 

Termination

This Agreement shall remain effective until terminated in accordance with its terms. The Company may terminate this Agreement, and/or your access to and use of the Services or any portion thereof, at any time in our sole discretion. The Company may also terminate this Agreement and use of the Services immediately in the event we determine that you have breached this Agreement. 

 

 

TRADING RISK

The general statement herein does not disclose all of the risks and other significant aspects of trading in futures 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 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.

 

 

Futures

1. 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.

 

2. 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.


Options

3. Variable degree of risk
Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarise 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.


The purchaser of options may offset or exercise the options or allow the options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a future, the purchaser will acquire a futures position with associated liabilities for margin (see the section on futures above). If the purchased options expire worthless, you will suffer a total loss of your investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote.

 

Selling ("writing" or "granting") an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amount. The seller will be liable for additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying interest or a future or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited.

 

Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.

 

 

Additional risks common to futures and options

4. Terms and conditions of contracts
You should ask the firm with which you deal about the terms and conditions of the specific futures or options which you are trading and associated obligations (e.g., the circumstances under which you may become obligated to make or take delivery of the underlying interest of a futures contract and, in respect to options, expiration dates and restrictions on the time for exercise). Under certain circumstances the specifications of outstanding contracts (including the exercise price of an option) may be modified by the exchange or clearing house to reflect changes in the underlying interest.

 

5. Suspension or restriction of trading and pricing relationships
Market conditions (e.g. illiquidity) and/or the operation of the rules of certain markets (e.g. the suspension of trading in any contract or contract month because of price limits or "circuit breakers") may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions. If you have sold options, this may increase the risk of loss.

 

Further, normal pricing relationships between the underlying interest and the future, and the underlying interest and the option may not exist. This can occur when, for example, the futures contract underlying the option is subject to price limits while the option is not. The absence of an underlying reference price may make it difficult to judge fair value.

 

 

6. Deposited cash and property
You should familiarise yourself with the protections accorded to money or other property you deposit for domestic and foreign transactions, particularly in the event of a firm insolvency or bankruptcy. The extent to which you may recover your money or property may be governed by specific legislation or local rules. In some jurisdictions, property which had been specifically identifiable as your own will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall.

 

 

7. 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 (if any) or increase your loss.

 

 

8. Transactions in other jurisdictions
Transactions on markets in other jurisdictions, including markets formally linked to a domestic market, may expose you to additional risk. Such markets may be subject to regulation which may offer different or diminished investor protection. Before you trade you should inquire about any rules relevant to your particular transactions. Your local regulatory authority will be unable to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions where your transactions have been effected. You should ask the firm with which you deal for details about the types of redress available in both your home jurisdiction and other relevant jurisdictions before you start to trade.

 

 

9. Currency risks
The profit or loss in transactions in foreign currency denominated contracts (whether they are traded in your own or another jurisdiction) 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.

 

 

10. Trading facilities
Most open-outcry and electronic trading facilities are supported by computer-based component 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. Your ability to recover certain losses may be subject to limits on liability imposed by the system provider, the market, the clearinghouse and/or member firms. Such limits may vary, you should ask the firm with which you deal for details in this respect.

 

 

11. Electronic trading
Trading on an electronic trading system may differ not only from trading in an open-outcry market but also from trading on other electronic trading systems. If you undertake transactions on an electronic trading system, 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 is not executed at all.

 

 

12. Off-exchange transactions
In some jurisdictions, and only then in restricted circumstances, firms are permitted to effect off-exchange transactions. The firm with which you deal may be acting as your counter-party to the transaction. It may be difficult or impossible to liquidate an existing position, to assess the value, to determine a firm price or to assess the exposure to risk. For these reasons these transactions may involve increased risks. Off-exchange transactions may be less regulated or subject to a separate regulatory regime. Before you undertake such transactions, you should familiarise yourself with applicable rules and attendant risks.

 

 

Privacy Policy

Information we collect from users of the site will be stored by us on computers in the USA and may be used in the following ways:

  • Contact details - We will use your contact details (your name, job title, telephone and fax number and your e-mail and postal addresses) to provide any services requested by you and also to tell you about important changes to the site and its functionality. These details may be used by us to provide you with information about other services and products.

  • To alter your details - If your contact details change you can alter the details we hold by sending an e-mail notification using the contact form on the Website.

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THE INFORMATION AND MATERIALS CONTAINED IN THIS SITE, INCLUDING TEXT, GRAPHICS, LINKS OR OTHER ITEMS ARE PROVIDED “AS IS”, “AS AVAILABLE”. TraderMakers and all its affiliates and subsidiaries DOES NOT WARRANT THE ACCURACY, ADEQUACY OR COMPLETENESS OF THIS INFORMATION AND MATERIALS AND EXPRESSLY DISCLAIMS LIABILITY FOR ERRORS OR OMISSIONS IN THIS INFORMATION AND MATERIALS. NO WARRANTY OF ANY KIND, IMPLIED, EXPRESSED OR STATUTORY INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF NON-INFRINGEMENT OF THIRD PARTY RIGHTS, TITLE, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND FREEDOM FROM COMPUTER VIRUS, IS GIVEN IN CONJUNCTION WITH THE INFORMATION AND MATERIALS.Tradermakers.com reserves the right to change and or modify these terms and conditions from time to time. It is the member’s responsibility to check this page on a regular basis for changes and modifications. Your use of this web site indicates your agreement to be bound by these terms and conditions.

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U.S. Government Required Disclaimer - Stock, Futures, Forex & Options trading has large potential rewards, but also large potential risk and it is not appropriate for everyone. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.

CFTC RULE 4.41 – Hypothetical or simulated performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results.

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