Risks Associated with Binary Options Trading

All Clients wishing to invest in Binary Options should carefully read this document. However, it should be noted that the information in this document cannot and does not disclose or explain all of the risks and other significant aspects involved in dealing in Binary Options.

The Client should not trade or invest in Binary Options unless he/she knows and understands the features risks involved and that he/she may lose entirely all of his/her money.

Binary Options are options that pay a pre-determined, fixed amount, depending on whether or not an event occurs at the time the Binary Option expires. Binary Options can have only one of two possible outcomes and allow you to take a simple “Yes or No” approach. Like traditional options, Binary Options are based on an underlying asset such as currencies, commodities, indexes or stocks, however one of the most significant differences from traditional options, among others, is that there can be only two outcomes for the option, either the client is paid the return upon the occurrence of the event, or the client loses the investment amount as determined in each option.

Trading in Binary Options is speculative and involves a high degree of risk that can result in the loss of your entire investment. Therefore, trading in Binary Options is appropriate only for persons that understand and are willing to assume the economic, legal and other risks involved in such transactions. You should be satisfied that Binary Options trading is suitable for you in light of your financial circumstances and attitude towards risk before trading. You should not engage in speculative Binary Options trading unless you understand the basic aspects of such trading and its risks. If you are in any doubt as to whether Binary Option trading is appropriate and suitable for you, please seek independent advice from a financial consulting professional. Fidelisco does not provide such advice. It is your responsibility, taking into account your personal circumstances and financial resources, to take particular care and make careful considerations independently, both prior to applying to engage in Binary Options with the Company, as well as prior to making any individual order. Where you do not understand the risks involved in applying for a trading account with Fidelisco or in making any individual order, you should seek advice and consultation from an independent Financial Advisor. If you continue to not understand the risks involved in trading in Binary Options, you should not trade at all.

You are advised that the Binary Options offered by the Company are not traded under the rules of any recognized, designated or regulated exchange. Consequently, engaging in Binary Option trading may expose you to substantially greater risks than investments which are so traded.

You are warned of the following risks:

  1. Derivative financial instruments and related markets can be highly volatile. The prices of the underlying instrument which a Binary Options refers to may fluctuate rapidly and over wide ranges and may reflect unforeseeable events or changes in conditions, none of which can be controlled by the Client or Fidelisco.
  2. Trading in Binary options is speculative and involves a high degree of risk. In particular because it involves in two possible outcomes, one of them may include the loss of the entire investment amount.
  3. Trading in Binary Options is appropriate only for persons who: (a) understand and are willing to assume the economic, legal and other risks involved in such transactions; and (b) are financially able to withstand losses of their entire investment funds.
  4. Fidelisco makes efforts that the quoted prices of each underlying asset that a Binary Option refers to will be reasonably related to the actual prices of such asset available in the market. Fidelisco makes no warranty, expressed or implied, that the quoted prices represent prevailing market prices.
  5. Fidelisco may have access to information that is not available to you, may have acquired trading positions at prices that are not available to you, and may have interests different from your interests. Fidelisco does not undertake any obligation to provide you with market or other information we possess, nor to alter or refrain from our own trading.
  6. Information of the previous performance of any underlying asset does not guarantee its current and/or future performance. The use of historical data does not constitute a binding or safe forecast as to the corresponding future performance of the underlying asset to which the Binary Options refers.

If there is anything you do not understand, please contact our Customer Services Team on support@365trading.com