This is the risk disclosure for clients using BullMarketz.com and who are looking to trade CFD or other complicated trading instruments. It should be read and fully understood before you continue using BullMarketz.com. Speculative trading is risky and your funds are at risk.
In the following document, BullMarketz.com might be described as “we, our or us,” while customers will be referred to as “you or yours.” Also, most of this risk disclosure is aimed at trading performed on third-party websites that we do not control or influence. Therefore you need to pay extra attention to the third-parties’ own risk disclosures.
Before we start
Important: Trading is associated with high risk, and we encourage all our users to be very careful. Always make sure you understand what you are doing as CFDs and other trading instruments often are complex. Never invest money you can not afford to lose. BullMarketz is up to par with the leading regulatory bodies within the EU (FCA and CySEC), and we fully respect the new guidelines laid out by ESMA for trading.
CFD and Forex Trading
CFD and forex trading are speculative forms of investing, and your capital is at high risk of loss. This type of trading is not suitable for anyone or everyone, and you need to consider the risks before you continue using our site or any of the associated sites recommended and/or linked to on our site.
On the following page, we will walk you through the risks associated with the type of trading discussed on this page.
CFDs, forex, and spread betting are derivatives meaning you don’t own the underlying asset. Instead, you speculate on the price of the asset.
This means that your positions aren’t traded on any real exchanges, and it also means that the broker you decide to use gets to set the prices. In some cases, this can result in prices listed on broker platforms not matching with the actual market price. Brokers also charge a spread, meaning they will add to or subtract from the market price in order to make a profit.
No Rights to Underlying Assets
It also means that you have no right to the assets you trade. For example, you will not be able to claim dividends for company stocks or any liquidation funds. Your positions are opened with the broker and not with the company or the exchange.
All the brokers and services recommended by us offer leveraged trading which enhances the risk. The margin will enhance the exposure for each of your positions, but higher potential payouts mean higher potential losses. In fact, with certain assets and leverage, you can lose money you didn’t invest, and your losses can magnify quickly.
Leverage also means that CFDs and forex are also not suitable for long-term investments even though the underlying assets were designed for this originally. When applying leverage, your position will increase and decrease in value quicker than the underlying asset which is why you want to sell sooner than when using regular investments.
Fluctuating assets such as cryptocurrencies will further magnify the risks, especially when using leverage.
There are certain things you can do to protect yourself against the associated risks and enhanced losses.
The number one tool you can use is education. Being aware of the risks is important, but it’s even more important that you understand how CFD and forex trading work and even more importantly, that you understand the assets you speculate on.
We provide comprehensive educational material for most available assets and assets classes, and we encourage you to study them before you get started. We also provide regular news updates with the latest information related to certain markets.
Monitor your positions
The second best protection is to always monitor your open positions. As CFD trading isn’t suitable for long-term investments, you need to be ready to close a position as soon as the market starts moving in the wrong direction. Using a mobile trading app or similar can be highly beneficial for this reason alone.
We also advise you to apply stop-losses to your investments so that your positions are closed automatically even when you’re not around.
We do not carry any responsibility for losses that occur on any third-party platforms whether we recommended that service or not. We also do not carry responsibility for losses you’ve experienced by investing based on information contained on this website.
All final decisions are yours to make, and you are ultimately responsible for yourself.
Note that all associated websites that we link to an/or recommend have their own Terms & Conditions as well as Risk Disclosures and you need to familiarize yourself with these before you start using their services.
There is a high probability that the services we recommend have very different terms. Therefore, any arrangements between you and any third party contacted via the website are at your sole risk.