A contract for differences (CFD) is an arrangement made in financial derivatives trading where the
differences in the settlement between the open and closing trade prices are cash-settled. There is no
delivery of physical goods or securities with CFDs.
A contract for differences (CFD) is a financial contract that pays the differences in the settlement
price between the open and closing trades.
This brief Risk Disclosure Statement does not intend to disclose all the risks or other significant
aspects of entering the Transactions. There will be other risks resulting from the specific terms
and features attached to each Transaction, which the Client must also understand prior to entering
Each trade that you enter will require you to have sufficient funds available to cover the margin
requirement. These amounts vary from underlying market to underlying market from which any trade you do
with us is derived. It will also depend on the size of the transaction. In effect, margin will usually
be a relatively small proportion of the overall value of the CFD. This means you will be gearing or
As a result of gearing and leverage any relatively small movement in price can result in a high return
(movement for you) or substantial losses (movement against you).
You must monitor your open trades closely at all times, as any relatively small price movement may result
in you being required to immediately deposit additional funds or your failure to do so, may result in
the closure of all or any of your trades. You will be liable for all losses incurred.
You should also be aware that under our Customer Terms of Business we are entitled to increase margin
rates on short notice. If we do so, you may be required to deposit additional funds into your account to
cover the increased margin rates. If you do not do this when required, we shall be entitled to close one
or more of your trades.
It is possible for you to lose more than the level of funds you have deposited with us and any negative
cash balance as a result of this will be immediately due and payable as CFDs are legally
CFDs fluctuate in value during the day; the price movements of CFDs are determined by a number of
factors. Therefore, trading in these contracts is appropriate only for persons who understand and are
willing to assume the economic, legal and other risks involved in such transactions. You should be
satisfied that spot forex and CFD trading is suitable for you in the light of your financial
circumstances and attitude to risk. If you are in any doubt as to whether spot forex or CFD trading is
suitable for you, please seek independent advice from a financial services professional. 4T does not
provide such advice. You should not commence trading in CFDs unless you understand the risks
4T prices are set by considering factors effecting the underlying instrument, i.e. market spread, underlying price and available liquidity for that instrument. Market conditions can change significantly in a very short period which may affect the way the trade is executed. A lack of market liquidity may adversely affect the execution price of your order or trade and cause slippage.
Financial markets can be very volatile. Gapping refers to an occurrence whereby the quoted price moves sharply from one level to the next, through an order level meaning your order may be executed at a worse price than you had hoped for which may incur losses beyond expectation. Clients are to be aware that orders pending in the market are liable for gapping and slippage.
Trading and investing in leverage products such as Foreign Exchange (FX) and CFDs carry a high degree of risk to your capital and as a result, significant losses may occur.
CFDs are "over the counter" (OTC) products, which means that they are not traded on a licensed financial market, such as a Stock Exchange. They are a contract between you and us, which means you are exposed to the risk of us as the counterparty not fulfilling our obligations to you.
Trading Facilities Risk
Our electronic trading facility is supported by computer-based component systems for the order-routing, execution, matching, registration or clearing of trades. As with all facilities and systems, they are vulnerable to temporary disruption or failure. The Client’s ability to recover certain losses may be subject to limits on liability imposed by the one or more parties, namely the system provider, the market, the clearing house, or member firms. Such limits may vary.
Electronic Trading Risk
If the Client undertakes transactions on an electronic trading system, it will be exposed to risks associated with the system including the failure of hardware and software. The result of any system failure may be that the Client’s order is either not executed according to its instructions or not executed at all. Although electronic communication is often a reliable way to communicate, no electronic communication is entirely reliable or always available. If you choose to deal with us via electronic communication, you should be aware that electronic communications can fail, can be delayed, may not be secure and/or may not reach the intended destination.
Foreign Exchange risk
CFDs are denominated in the currency of the relevant underlying market. Whilst trading in foreign denominated CFDs you are exposed to the risk that the proceeds of the trade will not be worth as much as they would have been at the onset of trade due to an adverse movement in the exchange rate.
Regulatory and Legal Risk
The risk that a changeover in laws and regulations will significantly affect a security and investments in a sector or market. A change in laws or regulations made by the government or a regulatory body can raise the expenses of operating a business, decrease the attractiveness of investment and/or change the competitive landscape and as such alter the profit potential of an investment. This risk is volatile and may vary from market to market. In developing markets such risk may be greater than in more advanced markets. For instance, in developing markets the incompetence or absence of regulatory procedures can give rise to an increased danger of market manipulation, insider trading or the absence of financial market supervision can affect the enforceability of legal rights.
Acknowledgment of Receipt of the Risks Disclosure Statement
I/We acknowledge that the Company has provided me/us the risks disclosure statement explaining the risks associated with investments, invited me/us to read the risks disclosure statement and ask questions if necessary. Furthermore, I/We represent that this risks disclosure statement do not purport to be a complete explanation of the risks involved in the entry into Transactions. I/ We acknowledge that I/We understand the contents of this risks disclosure statement the risk of loss involved in investing, dealing and/or trading in Securities, including derivatives and other financial instruments and transactions, in particular the speculative risks. I/We understand that the Company makes no representations or guarantees regarding the performance of any investments undertaken by the Account and we shall not hold the Company responsible as such.
يصرّح العميل أنه إتطلع على بيان الإفصاح العام عن المخاطر وأن الشركة تشدد عليه وأنه فهم تماما مخاطر الخسارة المتعلقة بالإستثمار والتعامل و/أو
التداول في الأدوات المالية منها المشتقات المالية، لا سيما تلك التي لها طابع المضاربة.
This document was drafted in English and the English version shall prevail over any translation to any other language. The Undersigned hereby confirms that he fully comprehends the English language and has no reservations whatsoever in this respect.
يصرّح العميل أنه يتقن اللغة الإنكليزية وأن لاحاجة لترجمة هذا المستند إلى اللغة العربية و أنه قرأ هذه المستند و فهم مضمونه.
Contracts for Difference (CFDs) are a leveraged product and can result in losses that exceed deposits.
CFD trading carries a high level of risk and may not be suitable for everyone, so please ensure you fully
understand the risks involved before trading.