This notice is provided to you in accordance with the Markets in financial Instruments Directive (MiFid) of the European Union and the Investment Services and Activities and Regulated Markets Law of 2007 of Cyprus (Law 144(I)/2007), since you the trader is considering dealing with brokerage companies in binary options.
This notice cannot and does not disclose or explain all of the risks and other significant aspects involved in dealing with binary options. The purpose of this notice is to explain in general terms the nature of the risks involved when dealing with binary options and to help you make investments and take any investment decisions on an informed basis. This notice should be read along with the “Terms and Conditions”, on this website
This is in accordance with the Markets in financial Instruments Directive (MiFid) of the European Union and the Investment Services and Activities and Regulated Markets Law of 2007 of Cyprus (Law 144(I)/2007), if you are considering dealing with trading binary options.
In this respect, traders should consider carefully before trading in financial instruments, including binary options, as this is suitable for traders who understand and are willing to assume the financial, legal and other risks involved as well as those who are financially able to assume any losses.
Potential traders are advised to seek independent investment advice, if necessary.
Before traders begin to trade, they should obtain details of all commissions and any charges for which they will be liable and should also be aware of the following:
Risks associated with Transactions:
It is emphasized that for many members of the public dealings in binary options will not be suitable. You should not engage in any dealings directly or indirectly in binary options unless he/she know and understands the features of the risks involved in them.
1. You should unreservedly and unconditionally acknowledge and accept that, regardless of any information which may be offered by brokerage companies, the value and the characteristics of the options offered may fluctuate downward or upwards at any time.
2. The high degree of the market’s volatility in the buying of a call or put option. Binary options are instruments that allow the trader to trade on price movements in underlying markets/instruments. brokerage companies’s prices are derived based on the underlying instruments/markets. The fluctuation of the underlying instrument will affect the trader’s profitability. It is therefore suggested that the trader does not enter into binary options, unless he/she is willing to undertake that the risk of losing all the money which he/she has invested in it is high and that he/she may incur any additional commissions and/or other expenses.
3. The prices of the assets that you choose to trade in the market will be influenced by, amongst other things, changing supply and demand relationships, governmental, agriculture, commercial and trade programs and policies national and international political and economic events and the prevailing psychological characteristics of the relevant market place.
4. Binary options have a contingent liability, and the trader should be aware of their implications.
5. traders are required to deposit funds in their trading account in order to open a position and choose their option in the market. Brokerage companies will not notify the trader of any option which might result to the trader sustaining a loss making position.
6. Information of the previous performance of the binary options does not guarantee its current and/or future performance as well as a performance of the underlying instrument. By using date available, this does not comprise a safe forecast as to the corresponding future performance of the binary options market and underlying instrument to which that information refers.
7. You take the risk that his/her trades in binary options may be or become subject to tax and/or any other duty, for example, because of any changes in legislation or changes to his/her personal circumstances. Brokers does not warrant that no tax and/or any other stamp duty will be payable. You should be responsible for any taxes and/or any other duty which may accrue in respect of his/her trades.