Risk Disclosure
General Information
YLG BULLION AND FUTURES CO., LTD.License Number: S1-0035-01,License Type: S-1 the information provided in this Risk Disclosure Statement is for general purposes only and does not constitute an offer or solicitation to buy or sell any investment products. It is important to note that trading in financial markets, including but not limited to futures, bullion, and other derivative instruments, involves substantial risk and is not suitable for all investors. Trading on the platform provides access to a wide range of instruments, including leveraged products, which can result in significant financial loss.
Risk of Loss
Trading With leverage involves the risk of losing more than your initial investment. The price of financial products, including but not limited to bullion, futures contracts, and derivatives, can fluctuate significantly. Leverage can magnify both potential profits and potential losses. As a result, you may sustain losses greater than your initial margin and may be required to deposit additional margin at short notice to maintain your position.
Margin and Liquidity risk
When trading on margin, you are required to maintain a minimum balance in your account to support your positions. Failure to maintain the required margin may result in automatic liquidation of your positions. This may happen without prior notice, potentially leading to substantial losses. Liquidity issues in the market may also affect your ability to enter or exit positions at desired levels.
Market Risk
Market conditions, including volatility, economic events, and geopolitical developments, can cause significant price fluctuations. Such movements may lead to the partial or total loss of your invested funds. Liquidity risk may also arise in certain market conditions where it becomes difficult to execute orders at acceptable prices.
Risk of Suspension or Restriction of Trading
Market events, such as trading halts or the imposition of price limits, may prevent you from entering or exiting trades when you desire. Such restrictions can increase the risk of losses as it may become difficult to liquidate or offset positions during market disruptions.
Foreign Exchange risk
If you are trading products denominated in foreign currencies, fluctuations in exchange rates can significantly impact the value of your investments. The exchange rate risk is particularly important when trading in foreign markets or when your positions are in currencies other than your home currency.
Commission and Financing Costs
In addition to market risk, you should be aware of the costs involved in trading, including commissions, spreads, and financing charges. These charges can impact the profitability of your trades, especially when holding positions overnight or over an extended period.
Suitability of Investments
Leveraged trading is not suitable for all investors, especially those with low risk tolerance or a primary objective of capital preservation. You should carefully consider your investment objectives, risk appetite, and financial situation before engaging in any trading activity. We advise you to seek independent financial advice from a qualified professional before committing to any investments.
No Advice Provided
YLG Bullion and Futures Co. Ltd. does not offer investment advice unless specifically agreed upon under a separate engagement. You are solely responsible for evaluating the suitability of any investment or trading activity in accordance with your own objectives, needs, and financial circumstances.
Acknowledgment and Acceptance of Risks
By using theplatform and engaging in trading with YLG Bullion and Futures Co. Ltd., you acknowledge that you understand and accept the risks involved in trading leveraged products. You also agree to comply with the terms and conditions set forth in this Risk Disclosure and in the customer agreement, which will govern your relationship with the company.
Regulation and Compliance
Please note that this Risk Disclosure Statement has not been reviewed or approved by regulatory authorities. It is your responsibility to ensure that you are aware of the relevant legal and regulatory requirements applicable to your trading activities.