The Contracts offered by RockGlobal are speculative products that can be highly leveraged and carry significantly greater risk than non-leveraged investments. You should carefully read this section and then consider whether trading in leveraged Contracts is right for you given your personal circumstances (financial, taxation, and otherwise) before you begin trading with us. We encourage you to seek independent financial, legal, and other professional advice to assist in qualifying your decision.
The risk inherent in trading speculative leveraged products is that adverse price direction to a position is amplified to the degree of leverage employed. It is possible to lose more than the equity in your Account as a result and you will be liable to pay these additional amounts. It is reasonably foreseeable that, following a trade, you may receive, in total, less than the amount deposited by you to RockGlobal in your Account. Trading can result in losses that are greater than your Account balance.
Under certain conditions, it could become difficult or impossible for you to liquidate a position (this can, for example, happen when there is a significant change in prices over a short period). The inability to liquidate a position in no way eliminates your liability to RockGlobal.
The risk of loss in trading in leveraged instruments such as the products offered by RockGlobal can be substantial. You should be cautious of the amount of leverage you apply and carefully consider whether trading leveraged instruments is appropriate for you.
Currencies, futures, contracts for difference and derivatives are speculative and highly volatile. Prices can fluctuate rapidly and may reflect unforeseeable events or changes in conditions. These can be difficult, if not impossible, to predict.
Combined with high leverage utilisation, the volatility can create a situation where a relatively small adverse market movement may result in a loss.
Sometimes markets move so fast that ‘gapping’ occurs. This is where markets move so quickly that sudden drops or increases occur. If this occurs in the underlying market, it also affects the price and may mean you are unable to close out a position or open a new position for the price at which you have placed the order.
The placing of pending orders (such as a stop-loss order) may not always limit your losses to the amounts desired. Conditions may prevent execution of such orders.
Your order at all times relies on RockGlobal to execute at related prices in the market. If RockGlobal is unable to do this, your executed price may be more or less than reflected in the market at that given moment. Such “slippage” is a source of risk.
The spread between the bid and ask of a quote fluctuates with the liquidity and volatility of the market. If you open a position and then close it before the market has moved favourably, you may still incur a loss to the extent of the spread and any fees and commissions payable.
As the price of the Contract is based upon the movement of underlying assets, factors affecting the relevant currencies will also affect your position.
The value of a Contract will be affected by market risk. Markets are affected by a range of factors, including economic, taxation and regulatory conditions, market sentiment, political events, interest rate movements, currency movements, environmental and technology issues. Emerging and developing markets are considered higher risk, and can be significantly more volatile
Further profits or initial funds sent to a liquidity provider as an ECN broker by RockGlobal may be at risk in the event of insolvency of the counterparty or counterparties. This may result in a delay or inability to withdraw funds until after the remittance of such amounts back to RockGlobal, subject to any statutory claw-back period or associated litigation and/or judgments. This also applies if withdrawals are delayed due to issues at our LP's.
Kind regards,
RockGlobal Team
