NEXTARTFX Risk Disclosure Materials
1. Key Information
NEXTARTFX investment dealer services are provided by NEXTART CO.,LTD. (operating under the trade name "NEXTARTFX") ("NEXTARTFX" or "we" or "us").
This Risk Disclosure Statement explains what you should know about the products we can offer you. It explains the risks, rights and obligations associated with our products so that
1. to provide you with the information you need to determine whether the products we offer are suitable for your personal objectives, financial situation, and needs
2. Risk Warnings and Important Considerations
Trading OTC/OTC derivatives is not suitable for all investors and involves the risk of significant losses as well as the possibility of earning profits. In the event of a loss, the amount of the loss could significantly exceed the amount of the initial deposit. Margin Contracts / Underlying Assets of the Transaction
(foreign exchange rates, commodity prices, indices, etc.) are affected by a variety of factors that are unpredictable on a global basis. The price of the underlying asset may fluctuate wildly in the marketplace, which may result in an inability to settle an unfavorable trade.
We cannot guarantee the maximum loss you may incur as a result of your trading activities.
OTC derivative products are highly leveraged speculative instruments and carry significantly greater risk than non-leveraged investments; you should not invest in OTC derivative products unless you properly understand the nature of OTC derivative products and are comfortable with their risks.
CFD trading in currency pairs, stock indices, metals and commodities (referred to in this Notice/Instructions as "trading") poses a high degree of risk to your capital. You should not engage in this form of investment unless you fully understand the nature of the transactions you engage in and the true extent of your exposure to the risk of loss. Your profit or loss will vary depending on the degree of price volatility in the underlying market on which you base your transactions.
Trading in OTC derivatives is not suitable for all investors and involves the risk of significant loss as well as the potential for profit. Therefore, you should carefully consider whether or not OTC derivatives are suitable for you in light of your circumstances, financial resources, and investment objectives.
When considering whether to engage in this type of investment, the following points should be kept in mind
A high degree of "leverage" or "gearing" (i.e., initial capital requirements relative to the size of the transaction that can be placed) is particularly characteristic of this type of trading. As a result, relatively small movements in the underlying market can have a disproportionate impact on your trades. If the underlying market moves in your favor, you may be able to profit fully, but an equally small adverse market move could quickly cause you to not only lose all of the funds you have deposited, but also incur substantial additional losses. In particular, your losses may be unlimited, and the deposit or other amounts paid by you do not limit your losses. If you decide to trade CFDs with margin, you must accept this degree of risk.
You may be required to deposit a large amount of additional margin on short notice in order to maintain your position. If you do not provide such additional funds within the required time frame, your position may be closed at a loss, and you will be liable for any resulting losses. If you have any questions about our products, you should seek independent professional advice.
2.4.2. Merged CFDs
The purpose of trading in merged CFDs is to secure profits or avoid losses by reference to changes in the price of the underlying asset or index (the "underlying market"). In connection with our activities, the Underlying Market may be a stock index, an exchange rate between two currencies, a CFD on gold, silver or oil, or such other investment as we may agree in writing from time to time. As an express condition of each CFD transaction, neither you nor the Company
Neither you nor the Company shall acquire or have the right to acquire, or be obliged to sell, buy, hold, deliver or receive, any of the following rights in the target market
The rights and obligations of each party in a CFD transaction are primarily to make and receive the relevant payments
2.4.3. Margin Requirements
We reserve the right to adjust margin requirements for any and all products we offer. As a result, your margin requirements may increase and you may be required to deposit additional funds to maintain your existing positions.
2.4.4. Position Monitoring
It is your responsibility to monitor your account. If the net value of your account (cash + ongoing profit - ongoing loss)
falls below the required margin, we may close part or all of your transactions at the current market price. However, this is not guaranteed, and it is your responsibility to ensure that sufficient funds are in your account at all times.
2.4.5. Market Risk
Merged CFD transactions are dependent on the price fluctuations of the underlying financial instrument. Therefore, you are exposed to the same, but magnified, risks as if you owned the underlying asset. In some cases, the risk may be greater.
Setting a stop loss order can help limit your losses, but is not guaranteed, as losses may be magnified under certain circumstances. Slippage is when a stop loss order is not executed at the price you ordered and slides to a higher or lower price. This may be due to abnormal fluctuations in a particular underlying market for a period of time. In such cases, the stop loss will not be valid and your position will be closed at the current NEXTARTFX price.
Gapping is when a particular market jumps so much that the stop loss is not effective and the trade closes at a much higher or lower price than intended. Therefore, if you have an open position in a volatile market environment, you should be aware of the potential consequences of these situations, as you may be closed out at the next available NEXTARTFX price.
Under certain trading conditions, it may be difficult or impossible to liquidate a position. This could occur, for example, in the event of sharp price fluctuations, where prices rise or fall in a single trading session and trading is restricted or halted.
Market spreads may widen significantly at the start and end of the market and prior to announcements. Therefore, clients should ensure that they have sufficient funds in their accounts to prepare for such events.
If a customer trades instruments denominated in a currency different from the one in which the customer holds an account, fluctuations in exchange rates will affect the customer's profit or loss.
No credit is given to customers. Neither the credit allocation for variation margin nor the credit allocation for initial margin constitutes a credit facility.
2.4.7. Counterparty Risk
We are the counterparty to all of your transactions. None of our products are listed on an exchange, and no rights, interests, or obligations may be transferred to others. While we are obligated to provide you with the best execution and to act reasonably in accordance with our published trading terms and conditions, Margined CFDs opened on our account must be settled by us based on our prices and in accordance with the terms and conditions you have contracted with us.
You should seek financial, legal, tax, and other professional advice as necessary to ensure that your OTC derivative transactions are appropriate to your objectives, needs, and circumstances before you enter into them. the tax consequences of OTC derivative transactions are complex and will vary depending on each person's financial situation. Consult your tax advisor before engaging in OTC derivative transactions.
2.4.8. Commissions and Spreads
Prior to trading with us, you should obtain details of all commissions and other fees that you will be responsible for. Where commissions are not expressed in monetary amounts (e.g., bid-offer spreads), you should obtain a clear explanation of what such commissions mean in terms of specific amounts. If a commission is charged as a percentage, it is usually a percentage of the total contract amount, not simply a percentage of the customer's initial payment.
Depending on the type of transaction you make, you may be required to pay a finance charge. Transactions in currencies different from the base currency may require you to convert those foreign currencies to the base currency. The combination of overnight financing and foreign exchange costs may exceed your trading gains or increase the losses you incur on your trades.
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