This brief statement cannot disclose all the risks and other significant aspects of the commodity interest markets. The risk of loss in trading commodity interests can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. In considering whether to trade or to authorize someone else to trade for you, you should be aware of the following:
If you purchase a commodity option you may sustain a total loss of the premium and of all transaction costs.
If you purchase or sell a commodity futures contract or sell a commodity option or engage in off-exchange foreign currency trading you may sustain a total loss of the initial margin funds that you deposit with you 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.
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 trading advisor, 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 simple “long” or “short” position.
The high degree of leverage that is often obtainable in commodity interest trading can work against you as well as for you. The use of leverage can lead to large losses as well as gains.
In some cases, managed commodity accounts are subject to substantial charges for management and advisory fees. It may be necessary for those accounts that are subject to these charges to make substantial trading profits to avoid depletion or exhaustion of their assets.
This commodity trading advisor is prohibited by law from accepting funds in the trading advisor’s name from a client for trading commodity interests. You must place all funds for trading in this trading program directly with a futures commission merchant or retail foreign exchange dealer, as applicable.
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Belmont Capital, LLC and the logo and marks included on the Belmont Capital, LLC site are proprietary materials. The use of such terms, logos and marks without the express written consent of Belmont Capital, LLC is strictly prohibited. Copyright in the pages and in the screens of the site, and in the information and material therein, is proprietary material owned by Belmont Capital, LLC unless otherwise indicated. The unauthorized use of any material on the site may violate numerous statutes, regulations and laws, including, but not limited to, copyright trademark, trade secret or patent laws.
Updated April 2022
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