Binary options trading involves significant risks. Using services provided by Binary24 (hereinafter referred to as “the Company”) may result in losses as well as profits. We recommend that you read and understand the risk disclosure that is intended to inform you about risks that exist when engaging in the trading activities offered the Company) The disclosure is informational only and does not list all possible risks.
Binary options trading risks
Binary options trading is speculative and involves significant risks thus is not suitable for all investors. By using services provided by Binary24 (Binary Options trading) you unconditionally agree and understand that it may result in the total loss of your investment as a result of incompetent trading decisions and/or market fluctuations. You acknowledge and without any reservation accept the existence of a substantial risk of incurring losses as a result of binary options trading and you acknowledge your intent to take such a risk. A binary option is a derivative financial instrument: it derives its value from the performance of the underlying asset. Please note the following :
- The price of the underlying asset can vary considerably over the course of a day, which causes a higher risk of loss on a binary option trade. High volatility of the price of the underlying asset may be caused by economical announcements or events, geopolitical instability, changes in supply/demand etc.
- It can happen that for a certain period of time the underlying asset cannot be traded quickly enough on the market without impacting the market price (such an asset may have a higher degree of risk). In that case, the higher volatility may be reflected in a larger spread between the Ask and Bid prices, resulting in a change of the price of the underlying asset of a binary option trade.
- OTC/Counterparty risk: Binary options offered by the Company are Over-the-counter (OTC) or off-exchange traded. This means that the trading is done directly between two parties, without any supervision of an exchange. The Company sets the conditions for trading according to its obligations to provide the best execution for our clients. OTC/Counter party risk is the risk that, as there is no exchange market, the derivative transaction may not be closed out of an Open position. Prices quoted are established by dealers, which consequently makes it difficult to ensure fair pricing and assess exposure to risk. Prices may fluctuate due to changes in market conditions which are beyond your control and that of the Company. It may also not be possible for trades to be executed at the declared prices, resulting in losses.
The risk of abnormal market conditions
You understand and agree that in case the market conditions become abnormal (which includes but is not limited to: times of rapid price movements, rises or falls in the same trading session to such an extent that, under the rules of the relevant exchange, trading is suspended or restricted, or there is a lack of liquidity), the time required to process your orders may increase. Additionally, you agree that in such abnormal market conditions orders may not be executed at all.
Risks connected with the trading platform
You acknowledge that only the quotes received from our server are binding. You must understand that closing the position will happen automatically when the duration time of the binary option expires. Closing the order window does not cancel a submitted binary option deal.
Risks connected with the legal regulations
Each user is required to check trading regulations related directly or indirectly to binary options in their respective country before registering at our trading platform. Binary24 services should not be used by anyone in any jurisdiction in which such services are prohibited or are not authorized. It is your obligation to make certain that the use of Binary24 services is fully compliant with any law and regulation applicable in your country of residence.
The Company reserves the right to disclose personal information to third parties where required by law, regulatory agency, law enforcement or other governmental authority of a competent jurisdiction in order to protect our rights and/or to comply with such legal proceedings. Such disclosure shall occur on a ‘need-to-know’ basis, unless otherwise instructed by a regulatory agency or other governmental authority. Under such circumstances, the Company shall expressly inform the third party regarding the confidential nature of the information.
Third party risks
It is understood that The Company will promptly place all funds received from clients into one or more segregated accounts (denoted as ‘clients’ accounts’) with reliable financial institutions, within EEA, such as a regulated credit institution or a bank. It should be noted that, whilst we shall exercise due skill, care and diligence (in accordance with applicable laws) when selecting the financial institution in which your funds will be placed, the Company is unable to accept liability and responsibility for circumstances beyond our control and as such does not accept any liability or responsibility for any losses resulting from insolvency or any other comparable situation of the financial institution where your money will be held.
Force Majeure Events
We are not responsible for financial losses arising from force majeure events. These events are extreme and inevitable circumstances that are independent of the will and actions of the agreement participants, that cannot be foreseen, prevented, or eliminated. They include but are not limited to natural disasters, fires, man-made accidents and disasters, emergencies at public utilities, DDOS attacks, riots, military actions, terrorist attacks, uprisings, civil unrest, strikes, and the regulatory acts of state- and local government authorities. You may suffer financial losses caused by the materialization of the above-mentioned risks, and you understand that you shall be responsible for all related losses that you may suffer, assuming that these are not owed to the Company’s gross negligence or willful misconduct.
The Company (or any third party contractor) will not provide any investment recommendations. Any trading information available on Binary24 (like market news, announcements, trading signals etc.) shall not constitute an investment advice or recommendation. This includes guidance in relation to underlying assets, the market or specific trading strategies. The information included in materials published on Binary24 is solely intended for educational purposes and under no circumstances can serve as advice for an action. You should understand that by taking any actions as a result of this information, you accept and understand that it can cause the loss of all your capital. The Company does not accept any liability for any such losses resulting from actions taken by you on such information. You accept that you are solely responsible for the trades you make and that any transaction you enter into is done based on your own judgement. Information of the previous performance of binary options does not guarantee the same performance in the future.
Internet trading risks
There are risks associated with utilizing an Internet-based trading system, including but not limited to the failure of hardware, software or an Internet connection. No claims will be accepted for any losses caused directly or indirectly by any failure, malfunction, interruption, disconnection, disruption of any data transfer, connectivity, communication, operating system, mobile device or any piece of software.
The Company does not provide any guarantees of profits or avoiding losses when you use Binary24 services, especially when you trade binary options. There are no guarantees whatsoever granted by the Company in any respect.