General warning
Financial instruments may carry a high level of risk and may not be suitable for all investors. You may lose part or all of your invested capital. Before trading, you should carefully assess your experience, knowledge, financial situation and risk appetite and, where necessary, seek independent advice.
1. Loss of capital
The value of financial instruments may fall as well as rise. There is no guarantee that you will recover the amount originally invested and, in certain market conditions, losses may materialise rapidly.
2. Market risk and volatility
Instrument prices are affected by unpredictable economic, political and market factors. Periods of high volatility may cause wide and sudden price swings that directly affect open positions.
3. Leverage and margin risk
Where leveraged products are offered, a small market movement may have a proportionally larger effect on the capital committed. Leverage magnifies both potential gains and potential losses and requires adequate margin to be maintained. Insufficient margin may lead to the forced closure of positions.
4. Liquidation and Stop Out risk
If available margin falls below the required level, ASTEO may close positions in whole or in part, including at a loss and without prior notice, in accordance with the Leverage and Margin Policy.
5. Gap risk
Markets may open at levels significantly different from the previous close. In the event of gaps, orders — including stop losses — may be executed at prices less favourable than those indicated.
6. Liquidity risk
In certain conditions it may be difficult or impossible to close a position at the desired price or quickly, particularly for thinly traded instruments or during extraordinary market events.
7. Counterparty and credit risk
You are exposed to the risk that a counterparty or institution holding funds or instruments fails to meet its obligations. ASTEO applies selection and diversification measures, but this risk cannot be entirely eliminated.
8. Currency and interest-rate risk
Positions denominated in a currency other than the account currency are exposed to exchange-rate movements. Changes in interest rates may affect instrument values and the cost of financing positions.
9. Geopolitical and economic risk
Macroeconomic events, central-bank decisions, geopolitical tensions, regulatory measures and other systemic factors may affect markets suddenly and unpredictably.
10. Derivatives and CFD risk
Contracts for difference (CFDs) and other derivatives, where offered, are complex leveraged products. They provide exposure to an underlying without ownership and may lead to losses exceeding the margin committed where negative balance protection does not apply.
11. Overnight positions
Holding positions beyond the trading day may incur financing (swap/overnight) costs and expose you to price movements occurring when the relevant markets are closed.
12. Costs and charges
Spreads, commissions, financing charges and other costs reduce returns and may turn an otherwise profitable position into a loss. See the Charges and Fees document.
13. Technology and connection risk
Access to the platform depends on hardware, software, networks and third-party services. Interruptions, latency or malfunctions may prevent orders being placed, amended or closed in the desired timeframe.
14. Market-data risk
Market data may contain delays, inaccuracies or interruptions. Decisions based on such data are made at your sole risk.
15. Execution risk and slippage
The execution price may differ from the requested price owing to volatility, liquidity and latency. Slippage may be favourable or unfavourable to you.
16. Extraordinary events
In the event of force majeure or abnormal market conditions, execution venues may suspend trading, cancel transactions or adjust prices, affecting your positions.
17. Client responsibility
You are solely responsible for your investment decisions and should only trade with capital you can afford to lose. Use of the services presupposes understanding and acceptance of the risks described here.
Questions on this document?
Write to our Compliance function at compliance@asteo.eu or to our Data Protection Officer at dpo@asteo.eu. Postal correspondence: ASTEO LUXEMBOURG S.A., 120 Boulevard de la Pétrusse, L-2330 Luxembourg, Grand Duchy of Luxembourg.
This document is provided for information purposes and constitutes a professional draft pending validation by ASTEO's Legal and Compliance function. In the event of any discrepancy between language versions, the English version prevails unless mandatory local law requires otherwise.
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