Leveraged products — CFDs and derivatives. This Statement is provided in accordance with the General Code of Conduct issued under the FAIS Act, to bring to your attention the general nature and risks of the leveraged financial products offered by the Company.
Leveraged derivative products are complex and carry a high risk of losing money rapidly due to leverage. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money before you trade. You should never trade with funds you cannot afford to lose.
This Risk Disclosure Statement is provided by Makeba Markets (Pty) Ltd (FSP 53160) in accordance with the General Code of Conduct issued under the FAIS Act. It is intended to bring to your attention the general nature and risks of the leveraged financial products offered by the Company, so that you may make an informed decision before trading.
This Statement cannot disclose all the risks associated with leveraged trading. You should not trade unless you fully understand the nature of the products you are entering into and the extent of your exposure to risk, and, if in doubt, should seek independent financial advice.
The Company offers trading in contracts for difference (CFDs) and other derivative instruments referencing currency pairs, commodities, indices, and other underlying assets. These are leveraged, off-exchange products, meaning you do not own or have any rights to the underlying asset; you are instead entering into a contract to exchange the difference in the price of the underlying asset between the opening and closing of the position.
Leverage allows you to gain a market exposure larger than your initial deposit (margin). While leverage can magnify gains, it equally magnifies losses. A relatively small adverse market movement can result in a loss that is disproportionately large compared to your initial margin, and you may lose the entirety of your deposited funds. Depending on the product and your jurisdiction, you may also be liable for losses exceeding your deposited funds.
You are responsible for monitoring your Account and margin level at all times. If your margin level falls below the level required to maintain your open positions, the Company may close some or all of your positions automatically, without prior notice, in accordance with its trading conditions.
The value of leveraged products can fluctuate rapidly and unpredictably, particularly during periods of high volatility, low liquidity, or around scheduled and unscheduled news events. Prices may gap, meaning they move directly from one level to another without trading at intervening prices, which can result in orders being executed at a materially different price from that requested.
Under certain market conditions, it may be difficult or impossible to open or close a position at a desired price, or at all. The Company does not guarantee the availability of liquidity at any given time.
When you trade with the Company, you take on credit risk in respect of the Company as your counterparty (or, where applicable, the Company's liquidity provider) — that is, the risk that the counterparty is unable to meet its obligations to you. While Client funds are held in accordance with the Company's Client Funds and Segregation Policy, no compensation scheme exists in South Africa to protect Client funds in the event of the Company's insolvency, and segregation reduces but does not eliminate this risk.
Trading is conducted electronically and is therefore subject to risks including, but not limited to, internet connectivity failures, hardware or software faults, power failures, and cyberattacks, any of which may prevent you from placing, amending, or closing orders in a timely manner or at all.
Where your Account is denominated in a currency different from your base currency, or where you trade instruments denominated in a currency other than your Account currency, currency fluctuations may affect the value of your funds and trading results.
Positions held open past the daily rollover time are subject to financing charges (swaps), which can accumulate significantly over time, particularly on leveraged positions. Applicable rates are published on the Trading Platform and summarised in our Fees, Charges and Spreads Schedule.
Past performance is not indicative of future results. No representation, warranty, or guarantee is given by the Company as to the profitability, suitability, or outcome of any trade or trading strategy. Trading signals, market commentary, or educational material provided by the Company, if any, do not constitute personalised advice or a recommendation.
Leveraged derivative products are complex and carry a high risk of losing money rapidly due to leverage. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money before you trade. You should never trade with funds you cannot afford to lose.
By opening an Account and/or executing a transaction with the Company, you confirm that you have read and understood this Risk Disclosure Statement, that you accept the risks described herein, and that you are trading based on your own judgement and assessment of your financial circumstances, objectives, and risk tolerance.