Risk Disclosure
Trading spot foreign exchange, spot metals, and other off-exchange derivative contracts involve significant risks and may not be suitable for all individuals. This brief statement does not cover all potential risks associated with such transactions. Before engaging in these financial markets and products, customers should thoroughly understand the nature of these instruments and the extent of their exposure to risk.
Trading in these financial instruments may not be suitable for many members of the public. It is essential for customers to carefully assess whether trading is appropriate for their specific situation, taking into consideration their experience, objectives, financial resources, and relevant circumstances.
Customers should be aware that the foreign exchange and derivative markets can be highly volatile and subject to rapid fluctuations in prices. Prices of financial instruments may move unpredictably and result in substantial financial losses. The use of leverage can amplify both potential profits and losses, and customers should fully comprehend the implications of trading with leverage.
Additionally, economic, political, and regulatory factors can influence financial markets, leading to sudden and significant price movements. Technical issues in trading platforms and communication systems may also impact the execution of trades.
Past performance is not indicative of future results, and historical trading results do not guarantee similar outcomes in the future. Therefore, customers should not solely rely on past performance when making trading decisions.
It is crucial for customers to seek independent financial advice if they have any doubts or concerns about their trading decisions or investment strategies. Customers should carefully assess their risk tolerance and financial situation before engaging in these trading activities.
By participating in trading spot foreign exchange, spot metals, and other off-exchange derivative contracts with GCC Brokers Limited, customers acknowledge that they have read, understood, and accepted the risks associated with these transactions. Trading should be conducted with caution and responsibility to protect capital and manage risk effectively
Onboarding
Clients acknowledge that, in certain circumstances where regulatory Know Your Customer (KYC) requirements cannot be met, onboarding may take place under the Company’s unregulated St. Vincent and the Grenadines (SVG) entity. In such cases, Clients understand and accept that there is no regulatory supervision, investor protection, or recourse available, and that all transactions are conducted entirely at the Client’s own risk.
Effect of Leverage or Gearing
Transactions in spot foreign exchange, spot metals, and other off-exchange derivative contracts involve a high degree of risk due to the use of “leverage” or “gearing.” In leveraged trading, the initial margin required to open a position is relatively small compared to the total value of the contract. This enables Clients to control larger positions with a smaller amount of capital.
While leverage can amplify potential profits, it equally magnifies potential losses. Even small price movements in the market can have a significant impact on a Client’s funds, and losses may occur rapidly.
Importantly, the risk of loss is not limited to the initial margin deposited. If the market moves against a Client’s position or if margin requirements increase, the Client may be required to deposit additional funds on short notice. Failure to meet a margin call may result in the automatic liquidation of positions at unfavorable prices, and the Client will be liable for any resulting deficit.
Clients must carefully assess their risk tolerance, financial situation, and trading objectives before engaging in leveraged trading. Effective risk management is essential, and Clients are strongly encouraged to seek independent financial advice if they have any doubts about the suitability of trading with leverage.
Risk-Reducing Orders or Strategies
Risk-reducing orders or strategies—such as stop-loss or stop-limit orders—are designed to limit potential losses, but they cannot guarantee complete protection. During periods of high volatility, illiquid market conditions, or due to technological limitations, such orders may not be executed at the requested price. This can result in losses greater than initially anticipated.
No trading strategy, including stop orders, guarantees protection against adverse market movements. Markets can move suddenly and unpredictably, surpassing predetermined levels and causing orders to be filled at less favorable prices (“slippage”).
Similarly, strategies that involve combining or offsetting positions, such as hedging, may reduce certain risks but cannot eliminate risk entirely. Hedging may also introduce new risks or fail to achieve the desired outcome.
Clients should exercise caution when relying on risk-reducing orders or strategies. They should carefully assess their effectiveness and suitability in light of their trading objectives, experience, and risk tolerance. Continuous monitoring of open positions is essential, and Clients should be prepared for the possibility of losses regardless of the strategies employed. Independent professional advice is recommended where Clients are uncertain about the risks involved.
Restriction of Trading and Pricing Relationships
Clients should be aware that certain factors—such as illiquid market conditions, changes in government regulations, or trading restrictions in specific markets—may significantly increase the risk of loss and affect the ability to execute, liquidate, or offset positions. In illiquid markets, it may be difficult or impossible to find counterparties to transact at desired prices. As a result, Clients may face delays, partial fills, or an inability to execute trades, which can lead to substantial losses.
Regulatory changes or trading restrictions may also impact the availability or accessibility of certain instruments, markets, or assets. These developments may limit or prevent specific types of transactions.
Additionally, Clients should understand that off-exchange (over-the-counter) transactions are generally less regulated than exchange-traded instruments. OTC transactions may provide lower levels of transparency, oversight, and protection.
GCC Brokers Limited accepts no liability for any inability to execute transactions, delays, or losses arising from illiquid markets, regulatory changes, or trading restrictions.
Before engaging in off-exchange transactions, Clients are strongly encouraged to:
- Familiarize themselves with applicable rules and regulations;
- Understand the risks associated with OTC trading;
- Stay informed of market and regulatory developments; and
- Seek independent professional advice where appropriate.
By doing so, Clients can better assess and manage the risks inherent in such trading activities.
Week-End Risk
Clients should be aware that financial markets are generally closed for trading during weekends. Significant political, economic, or market events that occur during this period may cause markets to reopen at substantially different prices from their closing levels on Friday. This phenomenon, known as “gapping,” can result in positions being opened or closed at less favorable levels than expected.
During weekends, Clients cannot access the GCC Brokers Limited trading platform to place or modify orders. Holding open positions over a weekend therefore exposes Clients to the risk of sudden and adverse price movements, which may bypass stop-loss levels and cause substantial losses.
Clients who choose to maintain open positions over weekends do so entirely at their own risk and should carefully consider this exposure as part of their overall risk management strategy.
Electronic Trading Risk
Electronic trading involves risks associated with system performance, connectivity, and technological infrastructure. Failures or interruptions may result in delays, errors, or the inability to place, modify, or execute orders as intended. Such issues may also lead to duplicate or unintended orders being processed.
Clients acknowledge that:
- Hardware or software failures, server downtime, or disruptions in the trading platform may occur;
- Communication failures, internet connectivity issues, or power outages on the Client’s side may prevent timely access to the trading platform;
- GCC Brokers Limited is not responsible or liable for losses arising from such events, whether caused by system malfunction, third-party service providers, or communication failures beyond its control.
Clients are strongly advised to maintain alternative means of communication with GCC Brokers Limited and to implement appropriate safeguards to manage the risks associated with electronic trading.
OTC and Off-Exchange Transactions
When engaging in over-the-counter (OTC) and off-exchange transactions, Clients should understand that these trades are executed directly between two parties without the oversight of a centralized, regulated exchange.
Unlike exchange-traded instruments, OTC products and other off-exchange derivatives:
- Do not have standardized daily price movement limits;
- May provide less transparency in pricing and execution;
- May be subject to different, or fewer, regulatory requirements;
- May not offer the same level of investor protection as exchange-traded products.
As a result, Clients may face higher risks when participating in OTC or off-exchange transactions.
Before engaging in such transactions, Clients are strongly advised to:
- Familiarize themselves with the applicable rules and regulatory framework;
- Understand the risks arising from the absence of exchange-based protections;
- Exercise caution and conduct thorough due diligence.
Counterparty Risk
When entering into a trade, Clients transact directly with GCC Brokers Limited in its capacity as the counterparty. The GCC Brokers Limited online trading platform is not a marketplace or an exchange, and all transactions are bilateral contracts between the Client and the Company.
Clients acknowledge that:
- There are no guarantees regarding the creditworthiness or financial standing of GCC Brokers Limited.
- Counterparty risk arises from the possibility that GCC Brokers Limited may be unable to fulfill its obligations in respect of open positions.
- GCC Brokers Limited reserves the right, at its sole discretion, to cease trading in any OTC or off-exchange derivative instrument at any time. In such circumstances, Clients may be unable to liquidate adverse positions, which could result in substantial losses.
Introducing Brokers and Other Affiliations
GCC Brokers Limited may engage Introducing Brokers (IBs) or other third parties who refer Clients to the Company. Clients should understand that:
- Introducing Brokers are independent entities and are not employees, agents, or partners of GCC Brokers Limited.
- Any agreements or arrangements made between a Client and an Introducing Broker are entirely separate from the Client’s contractual relationship with GCC Brokers Limited.
- GCC Brokers Limited does not control the actions or representations of Introducing Brokers and bears no liability for any advice, recommendations, or statements provided by them.
- All trading accounts are held with, and all transactions are executed by, GCC Brokers Limited in accordance with its terms and conditions.
Clients are encouraged to exercise due diligence when dealing with Introducing Brokers and to direct any questions regarding their trading account or relationship with GCC Brokers Limited to the Company directly.
