Risk Disclosure
Risk Disclosure
Trading involves risk. Understand it before you begin.
Risk Disclosure
Trading involves risk. Understand it before you begin.
Purpose of This Risk Disclosure
AUT INVESTMENTS LIMITED is committed to providing full transparency about the potential risks involved in trading financial instruments. This document is intended to help clients make informed decisions by outlining the nature of the risks associated with Forex, CFDs, Indices, Metals, Stocks, and Commodities.
By opening an account or using our services, you acknowledge that you understand and accept these risks.
General Trading Risks
Market Volatility
Prices of financial instruments can change rapidly and unpredictably due to global events, economic data, political developments, or technical factors. Such volatility may result in significant gains — or losses — in a very short time.
Leverage Risk
Trading on margin allows you to control larger positions with a smaller deposit. While this can amplify profits, it equally increases the potential for losses, possibly exceeding your initial investment.
No Guaranteed Returns
Trading is speculative. There is no guarantee of profit or protection against loss. Past performance of any trader, strategy, or instrument is not a reliable indicator of future performance.
Market Gaps
Sudden price movements or “gaps” can occur when the market opens after a weekend, holiday, or economic event, causing orders to be filled at worse-than-expected prices.
Liquidity Risk
In certain market conditions, it may become difficult to close a position, especially with less frequently traded instruments. This may affect your ability to limit losses.
Execution Risk
Orders may not be executed at expected prices due to factors such as latency, slippage, or fast-moving markets. Delays in order execution can lead to unfavorable outcomes.
Product-Specific Risks
Forex and CFDs
- Prices are highly sensitive to economic data, central bank decisions, and geopolitical developments.
- The use of high leverage can lead to rapid losses.
- Not all CFD markets may be available during all trading hours.
Stocks & Indices
- Prices are influenced by company performance, earnings, mergers, and broader market sentiment.
- Corporate actions (e.g., dividends, stock splits) can impact open positions.
Commodities & Metals
- Influenced by seasonal demand, global supply chain issues, and geopolitical tensions.
- High price volatility is common, especially in energy and precious metals.
Risk Awareness
Technical & System Risks
- Platform Downtime:
Technology failures, internet disruptions, or server outages can limit access to the platform and prevent order placement or execution. - Third-Party Risks:
AUT INVESTMENTS LIMITED is not responsible for any delays or failures caused by third-party providers such as internet services, data vendors, payment processors, or VPS hosts. - Execution Delays:
During high volatility, orders may experience slippage or partial fills. Automated systems (including EAs) are not immune to these delays.
Legal & Regulatory Risks
- Regulatory Changes:
Trading conditions, leverage limits, and market access may change based on regulatory decisions in your jurisdiction. Such changes may affect open or future trades. - Jurisdictional Restrictions:
Some financial instruments or trading features may not be available to residents in certain countries due to legal restrictions. - Tax Implications:
Clients are solely responsible for understanding and complying with any tax obligations related to their trading activities.
Client Responsibility
- You are responsible for understanding the products you trade, how leverage works, and the implications of your trading decisions
- You must ensure your account is adequately funded to maintain open positions and manage margin requirements.
- It is your duty to monitor your trades and adjust or close them based on changing market conditions.
Risk Mitigation Best Practices
Start with a Demo Account to understand platform mechanics
Use Stop-Loss and Take-Profit orders for risk control
Trade with Capital You Can Afford to Lose
Limit Leverage Usage, especially as a beginner
Diversify Your Portfolio across asset classes
Stay Informed on market news, events, and economic releases
Avoid Emotional Trading — stick to your strategy
Final Note
Trading involves substantial risk and may not be suitable for all investors. Before trading, you should carefully consider your financial objectives, experience level, and risk tolerance. If needed, seek independent financial advice.
By opening an account or using our services, you acknowledge that you understand and accept these risks.AUT INVESTMENTS LIMITED provides tools and educational resources to support risk-aware trading, but ultimate responsibility lies with the client.
Trade Responsibly. Stay Informed.
Understanding risk is the first step toward successful trading. At AUT INVESTMENTS LIMITED, we’re committed to transparency, control, and equipping you with everything you need to navigate the markets responsibly.