You are considering to enter into Binary and Pair Options trading with Stockpair ("we", "our", "us"). Binary and Pair Options are high risk financial products, which are not suitable to many members of the general public.
This notice is meant to inform the user of potential high financial risks by engaging in Binary and Pair Options trading.
This notice should be read in conjunction with the risk disclosure contained in the Terms
and Conditions ("User Agreement").
If you choose to enter into Binary and Pair Options trading with us, it is important that you remain aware of the risks involved, that you have adequate financial resources to bear such risks and that you monitor your trading carefully.
Trading in Binary and Pair Options may result in a substantial or complete loss of funds and therefore should only be undertaken with risk capital. Risk capital means funds which the client can afford to lose and are not for his well being. We strongly recommend that a client, who is considering trading financial products, read through all the content of the Stockpair website so that he/she may obtain a clearer and more accurate understanding of the risks inherent in trading.
Our Binary and Pair Options are not listed and/or traded on any exchange. The prices and other conditions are set by us, and the calculation of the price to be paid (or the payout to be received) at the time the financial contract is purchased or sold, will be based on the Company's best estimate of market prices and the expected level of interest rates, implied volatilities and other market conditions during the life of the financial contract. The prices and other conditions are based on complex arithmetic calculations. Each Binary and Pair Option you open constitutes a contract with us as counter party to the trade; these contracts can be closed only with us, and are not transferable to any other person.
Binary and Pair Options are financial instruments that allow you to speculate on price movements in underlying markets. Although the prices at which you trade are set by an algorithm developed by us, our prices are derived from the underlying market. It is important therefore that you understand the risks associated with trading in the relevant underlying market because fluctuations in the price of the underlying market will affect the profitability of your trade. Some such risks include:
Volatility: movements in the price of underlying markets can be volatile and unpredictable. This will have a direct impact on your profits and losses. Knowing the volatility of an underlying market will help guide you how to trade.
Market swings: swing is a sudden shift in the price of an underlying stock price from one level to another. Various factors can lead to gapping (for example, economic events or market announcements) and gapping can occur both when the underlying market is open and when it is closed. When these factors occur while the underlying market is closed, the price of the underlying market when it reopens (and therefore our derived price) can be markedly different from the closing price, with no opportunity to close your trade in-between. 'Gapping' can result in a significant loss (or profit).
Market liquidity: In setting our prices we take account of the market or markets for the relevant underlying instruments. Market conditions can change significantly in a very short period of time, so that if you wish to close a contract we might not be able to do so under the same terms as when you opened it.
We offer you to trade via our websites which relies on Internet connection. Although Internet communication is often reliable, no electronic communication is entirely reliable or always available. If you choose to trade with us, you should be aware that electronic communications can fail, can be delayed, may not be secure and/or may not reach the intended destination.