Before deciding to participate in the derivative 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.
There is considerable exposure to risk in any off-exchange foreign exchange or asset transaction, including, but not limited to, greater-than-anticipated losses due to leverage, counterparty credit worthiness, limited recourse in law or regulatory protection and market volatility that may substantially affect the price, or liquidity of the assets you are invested in.
Moreover, the leveraged nature of derivative trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain a total loss of initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin requirement, your position may be liquidated and you will be responsible for any resulting losses.
There are also operational/technical risks associated with utilizing an Internet-based trading system including, but not limited to, the failure of hardware, software, and Internet connection. UGAM is not responsible for communication failures or delays when trading via the Internet. UGAM employs backup systems and contingency plans to minimize the possibility of system failure, and trading via telephone is always available.
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. UGAM is 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. UGAM has taken reasonable measures to ensure the accuracy of the information on the website. The content on this website is subject to change at any time without notice.
When a stock is delisted or suspended, investors may not be able to fill their short positions because the stock cannot be traded, and it will be terminated until the stock is delisted or the stock resumes trading. This process can last for days, months or even longer, especially when the company goes bankrupt and liquidates the longest. During this period, investors have to continue to pay securities lending fees based on the stock’s delisting price or the closing price of the stock on the most recent trading day, which may be very high.