The official language of Luma Exchange is English. Any translations of our website, policies, or trading content into other languages are provided for convenience only and may not be legally binding. In the event of inconsistency or misinterpretation, the English version will prevail.
This Risk Disclosure supplements our General Terms and Conditions. It does not list all possible risks but highlights key factors you must carefully consider before trading. Binary options, foreign currency, and derivative contracts carry a high degree of risk. You should not engage in trading if you do not fully understand the nature of these instruments, their potential exposure, and the impact of leverage.
Trading is not suitable for everyone. Before you proceed, assess your experience, financial objectives, available resources, and personal risk tolerance.
Trading on margin or leverage magnifies both gains and losses. A small movement in the market may cause disproportionate impacts on your balance. Losses may exceed your initial investment, requiring you to deposit additional funds to maintain open positions. If you fail to meet margin calls, Luma Exchange reserves the right to close your positions, and you will be liable for resulting losses.
Stop-loss and stop-limit orders can help reduce risk, but they are not guaranteed. In fast or illiquid markets, such orders may not be executed at the intended price. Combination strategies (such as spreads or straddles) may also carry significant risks.
Before entering a trade, ensure you fully understand contract terms such as settlement conditions, expiration dates, and margin requirements. Market changes, exchange rules, or regulatory decisions may affect contract performance.
Liquidity shortages, suspensions, or price limits may prevent you from closing positions or executing trades. Market correlation between assets and derivatives is not always reliable, and pricing may become uncertain.
Assets or cash deposited with a broker or counterparty may be at risk if that entity faces insolvency. Recovery of funds will depend on local laws and protections available in the jurisdiction where trades occur.
All commission, spreads, rollover, and administrative fees affect your overall profit or loss. You must be aware of all applicable charges before entering trades.
Trading in foreign jurisdictions may expose you to different or lower levels of regulatory protection. Local regulators may not be able to enforce compliance in other markets where you choose to trade.
Profits and losses in foreign-denominated contracts are affected by exchange rate fluctuations. Currency movements may reduce or increase your final results when converted back to your account currency.
You may not always be able to buy or sell assets immediately at your desired price. In volatile markets, daily margin adjustments may require you to deposit additional funds at short notice. Failure to do so may result in forced liquidation of positions at unfavorable prices.
Stop-loss orders are not guaranteed protections. Rapid price changes or market closures may result in execution at significantly different levels, increasing potential losses.
Orders may not execute instantly. Price differences between order placement and execution may occur, especially in fast-moving markets or outside normal trading hours. Spreads may widen during such periods.
In over-the-counter (OTC) or CFD transactions, you rely on the counterparty’s ability to honor contracts. If the counterparty defaults or your funds are not segregated, you may lose some or all of your investment.
Electronic and voice-based trading systems are subject to technical failures, connectivity issues, and errors. Outages may delay order execution or prevent access to your account. Liability for such failures may be limited by providers and exchanges.
Trading via Electronic Communications Networks or OTC arrangements carries unique risks, including system failures and difficulties in valuing or closing positions. OTC markets may be less regulated, increasing exposure to counterparties.
By trading with Luma Exchange, you acknowledge and accept that all trading involves significant risk of loss. You should not trade with funds you cannot afford to lose. Luma Exchange does not provide financial advice or guarantee profits. It is your responsibility to understand the risks before engaging in any trading activity.
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