risk disclosure document

risk disclosure document
A document outlining the risks involved in futures trading. The document includes statements to the effect that: you may lose your entire investment; you may find it impossible to liquidate a position under certain market conditions; spread positions may not be less risky than simple " long" or " short" positions; the use of leverage can lead to large losses as well as large profits; stop-loss orders may not limit your losses; managed commodity accounts are subject to substantial management and advisory charges.
There is a separate risk disclosure document for options which warns of the risks of loss in options trading. this statement includes a description of commodity options, margin requirements, commissions, profit potential, definitions of various terms, and a statement of the elements of the purchase price. The CENTER ONLINE Futures Glossary

Financial and business terms. 2012.

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