Risk Disclosure Statement
The statements of fact and opinions expressed herein
are the sole responsibility of the author. The information in these
survey compilations are taken from sources believed to be reliable.
It is intended for purposes of information and education only and
is not guaranteed by John Walsh, the Walsh Agency Inc., or any other
person, persons or entities, including any who may have referred you
to this web site, or sponsors of this site, as to accuracy, completeness
or trading results.
If you purchase or sell a commodity futures contract
or sell a commodity futures option, you may sustain a total loss of
the initial margin funds, all transaction costs and any additional
funds that you deposit with your broker to establish or maintain your
position. If the market moves against your position, you may be called
upon by your broker to deposit a substantial amount of additional
margin funds on short notice in order to maintain your position. If
you do not provide the requested funds within the prescribed time,
your position may be liquidated at a loss, and you will be liable
for any resulting deficit in your account. If you purchase a commodity
futures option, you may sustain a total loss of the premium and all
transaction costs.
Under certain market conditions, you may find
it difficult or impossible to liquidate a position. This can occur,
for example, when the market makes a ‘limit move’. The placement of
contingent orders by you or your broker, such as a ‘stop-loss’ or
‘stop-limit’ order, will not necessarily limit your losses to the
intended amounts, since market conditions may make it impossible to
execute such orders.
A ‘spread’ position may not be less risky than
a ‘long’ or ‘short’ position.
The high degree of leverage that is often obtainable
in commodity futures trading can work against you as well as for you.
The use of leverage can lead to large losses as well as gains.
Futures trading involves the risk of loss. You
can lose more than your original investment. People can and do lose
money trading futures. Futures Trading is not for everyone.
This brief statement cannot disclose all the
risks and other significant aspects of the commodity futures markets.
You should therefore carefully study commodity futures trading before
you make a decision whether or not to trade.