All content on this website has been produced for information purposes only and is not to be construed as an offer to buy or sell any financial instrument or security. All information, prices or projections are subject to change without notice. BANDS Financial Limited makes no representation or warranty that the information contained herein is accurate, complete, fair or correct or that any transaction is appropriate for any person and it should not be relied on as such. Any opinions, views and forecasts expressed herein reflect the personal views of the author(s) and do not necessarily reflect the views of BANDS Financial Limited.
Some financial products and investments are subject to fluctuations in price and or value and investors may get back less than originally invested. Certain high-volatility investments can be subject to sudden and large declines in value that could equal or exceed the amount invested. Futures and options, as well as certain other financial instruments, are speculative products and the risk of loss can be substantial. Consequently only risk capital should be used to trade futures and options and other speculative products. Investors should fully understand the risks and potential losses and seek their own independent investment and trading advice having regard to their objectives, financial situation and needs. This information is not intended to be construed as investment advice. We do not accept any liability or loss or damage arising from any inaccuracy or omission in or the use of or reliance on the information on this website.
Due to international regulations not all financial instruments/services may be available to all clients. You should be aware of and observe any such restrictions when considering a potential investment decision. Accessing this website in other jurisdictions may be prohibited or restricted by law, and persons accessing this website should inform themselves about and observe any such prohibition or restrictions. By continuing to access this website you agree to be bound by the foregoing.
BANDS Financial Limited is licensed by the Securities and Futures Commission of Hong Kong ("SFC") for the Regulated Activity of Dealing in Futures with CE number BFW669. BANDS Financial Limited is a company incorporated in Hong Kong with company number 2252554, and is subject to certain SFC codes and regulations, details of which can be found on the SFC's website at https://www.sfc.hk/en/.
Transactions in futures carry a high degree of risk. The amount of initial margin is small relative to the value of the futures contract so that transactions are "leveraged" or "geared". A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit. This may work against you as well as for you. You may sustain a total loss of initial margin funds and any additional funds deposited with the firm to maintain your position. If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss and you will be liable for any resulting deficit.
The placing of certain orders (e.g. "stop-loss" orders, or "stop-limit" orders) which are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders. Strategies using combinations of positions, such as "spread" and "straddle" positions may be as risky as taking simple "long" or "short" positions.
Futures and options can be volatile instruments and may fall in value as rapidly as it may rise. Any individual futures or options may experience downward price movement, and may under some circumstances become valueless or negative in value. There is an inherent risk that losses may be incurred rather than profit made as a result of buying and selling futures and options. Such losses may be substantial. You should understand that you may be liable for unlimited losses based on the rise or fall in the price of the underlying assets.
Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset or exercise the options or allow the options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futures contract, the purchaser will acquire a futures position with associated liabilities for margin (see the section on Futures above). If the purchased options expire worthless, you will suffer a total loss of your investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote.
Selling ("writing" or "granting") an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amount. The seller will be liable for additional margin to maintain the position if the market moves unfavorably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futures contract, the seller will acquire a position in a futures contract with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying interest or a futures contract or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited.
Certain exchanges in some jurisdictions permit deferred payment of the option premium, exposing the purchaser to liability for margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.
Transactions on markets or exchanges in other jurisdictions, including markets formally linked to the Hong Kong markets, may expose you to additional risk. Such markets may be subject to regulation which may offer different or diminished investor protection compared to that offered in Hong Kong. The Hong Kong SFC will be unable to compel the enforcement of domestic Hong Kong rules in markets in other jurisdictions where your transactions have been effected.
If you wish to transact in markets and exchanges outside of Hong Kong, you acknowledge that BFL arranges for the execution of orders on these exchanges and market centers by participants in the local market or on the relevant exchange and that transaction(s) will be cleared by such entity or their nominated clearing agents. Such entities may or may not be affiliates of BFL.
To address these risks, you need to conduct thorough research and analysis, develop risk management strategies, and ensure you have sufficient resources and expertise or seek independent professional advice to navigate the challenges associated with conducting transactions in overseas markets.