Risk

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Risk

Please read and understand the following contents carefully:

High risk investment
Margin trading involves high risk, and its loss may exceed the deposited funds, which may not be suitable for all investors. Before you decide to buy or sell the products provided by soyam trade limited, you should carefully consider your investment objectives, financial situation, needs and trading experience. The company may provide general advice that does not take into account your investment objectives, financial situation or needs. The general suggestions provided or the contents of this website are not intended to be personal suggestions. Possible situations include losses exceeding the deposited funds, so you should not use unbearable capital for speculation. Investors should be aware of all risks related to margin trading. We recommend that you seek advice from an independent financial advisor.
Network transaction risk
Using the network transaction execution system carries certain risks, including (but not limited to) hardware failure, software failure and network system connection problems. Since the company cannot control the strength of the connection signal, its receiving or router line, your equipment configuration or the reliability of its network connection, we are not responsible for communication failure, mistransmission or delay in network transactions. The company has a backup system and emergency response plan to minimize the possibility of system failure, including allowing customers to trade by telephone.
Market liquidity
In the first few hours after the opening of the market, the transaction tendency was calmer than usual until the opening of the markets in Tokyo and London. When the market is calm, there are fewer buyers and sellers, and the price difference is large, which is roughly because the first few hours of the market are still weekends for most parts of the world. Liquidity may also be affected when trading positions are transferred (5:00 p.m. Eastern time), because many of our liquidity providers will temporarily interrupt their networks to settle transactions on that day, and this may also lead to a large bid ask spread at that time due to lack of liquidity. When the market lacks liquidity, it may be difficult for traders to establish or close their positions at the required price, encounter delayed execution, and obtain an execution price far from the required price.
Market opinion reference
Any comments, news, research, analysis, prices and other information published on this website can only be regarded as general market information and do not constitute investment suggestions. The company will not be liable for any loss or loss (including but not limited to any loss of profits) caused by the direct or indirect use or reliance on such information.
Order execution mode
The company provides contract order transaction execution through the company's processing method. Under this model, the quotation provided by the company to customers is the best price given by one of the company's liquidity providers plus the point spread attached to each currency pair or contract. Under this model, the company is not a market maker of any currency pair or contract. Therefore, the company relies on these external providers to provide international futures and contract quotations. Although this model can promote efficiency and market pricing competition, several restrictions on liquidity may affect the final execution of your orders.
Delayed order execution
For different reasons, trading delays may occur when using the company's non trader platform international futures execution mode, such as the technical problems of traders connecting to the company's Internet, the delay of liquidity providers in order confirmation, or the lack of available liquidity of currency pairs that traders try to buy and sell. Based on the inherent volatility of the market, it is very important for traders to have an operational and reliable internet connection. In some cases, due to insufficient signal strength of wireless or dial-up connection, the trader's personal internet connection fails to maintain a stable connection with the company's server. The interruption of the connection path sometimes interferes with the signal, resulting in the abnormal operation of the company's trading platform, thus delaying the data transmission between the platform and the company's server. To check the Internet connection to our server, you can test the connection between your computer and the server.
Transaction instruction reset
During market fluctuations, there may be so many orders that it is difficult to execute the transaction at the specified price. By the time the order is executed, the bid / ask price that the liquidity provider is willing to accept may have changed by a few points. If the liquidity is insufficient to execute the "set range" order, the instruction will not be executed. In the case of limit orders or limit orders, the order will not be executed, but will be reset until it is executed. Please remember that the price limit hanging order and limit order guarantee the price, but they can not guarantee the execution of the transaction. Depending on the relevant trading strategy and relevant market conditions, traders may pay more attention to trading execution than the price obtained.
Widening bid ask spread
The bid ask spread may sometimes be higher than the general spread. The bid ask spread may change with the market liquidity. During the period of limited liquidity, at the opening of the market or during the position transfer at 5:00 p.m. Eastern time, the bid ask spread may expand in response to the uncertainty of price direction, soaring market volatility or lack of market liquidity. It is not uncommon for the bid ask spread to expand, especially when transferring positions. Trading transfer is generally a very quiet period in the market, because the working day in New York has just ended, and it is still several hours from the beginning of the new working day in Tokyo. Recognizing these patterns and taking them into account when trading with open positions or establishing new transactions at these times can improve your trading experience. This may happen during the press release, and the bid ask spread may increase significantly to make up for the huge market volatility. Higher bid ask spreads may only last for a few seconds or as long as a few minutes. The company strongly encourages traders to be cautious when trading during the press release period, and should always pay attention to their net account value, available margin and market risk. Higher bid ask spreads may adversely affect all positions in the account, including hedged positions.
Trading order is suspended
Orders may be suspended during periods of high trading volume. In this case, the order is being executed, but the execution of the transaction has not been confirmed. Relevant instructions will be displayed in red, and the "status" column of the "instructions" window will be displayed as "executed" or "in process". In such cases, the instruction is being executed, but it is still to be executed until the company obtains the confirmation of the quotation from the liquidity provider. During frequent transactions, there may be multiple instructions waiting to be processed. The increase of waiting instructions sometimes affects the liquidity provider to delay confirming several instructions.

The results may vary depending on the type of instruction issued. If the "set range" is not executed within the specified range, or if the delay has come to an end, the instruction will not be executed. If it is set as a market order, the order will be traded at the next available price in the market as far as possible. In these two cases, the "status" column of the "instruction" window is generally displayed as "executed" or "processing", and the relevant transaction will take some time to appear in the "open position" window. Depending on the type of instruction, the transaction may have been executed, but the display is delayed due to busy network.

Remember that each instruction is created only once. Repeatedly creating the same order may slow down or lock your computer, or inadvertently open a position other than what you want. If you fail to connect to our trading platform to manage your account at any time, you can contact the customer service center directly.
Hide order quotation
When the international futures and contract liquidity providers who provide quotations to the company do not actively create a market for a currency pair, and the liquidity decreases, there will be hidden quotations. The company will not deliberately "hide" the quotation; However, sometimes when liquidity is limited due to the interruption of contact with a provider or the significant impact of an announcement on the market, the bid ask spread may rise sharply. Concealment of quotation or expansion of price difference may cause the trader's account to require additional margin. When the instruction issued on the currency pair is affected by the hidden quotation, the profit / loss figure will be temporarily displayed as zero until the currency pair has a tradable price, and the system can calculate the profit / loss balance.
Trade order hedging
The hedging function allows traders to hold buying and selling positions of the same currency pair at the same time. When entering the market, traders do not need to choose the buying and selling direction of a currency pair. Although hedging can reduce or limit future losses, it cannot avoid further losses in the account. In the international futures and CFD contract market, traders can fully hedge above quantity rather than price. This is due to the difference between the buying and selling prices (or bid ask spread). Traders of the company will need to deposit margin in one direction of hedging positions (the direction with a large number of positions). Margin requirements can often be monitored in the simple quotation window. Traders may feel that the hedging function is suitable, but they should be aware of the following factors that may affect the hedging position.
Reduction of margin
As the bid ask spread may expand, resulting in the reduction of the remaining available margin in the account, additional margin may still be required even if an account has been fully hedged. If the remaining margin is insufficient to maintain any open position, the account may need to add margin and the open position in the account will be closed. Although long and short positions make traders feel limited by market changes, in fact, at any time when the bid ask spread expands and the available margin is insufficient, it is absolutely possible that additional margin may be required for all positions.
Order transfer cost
Rollover refers to the procedure of closing and opening positions at the same time of the day to avoid settlement and settlement of currencies. Rollover (overnight interest) also refers to the interest paid or obtained by the trading account for holding positions overnight. The overnight time refers to the time after 5 p.m. Eastern time on various platforms of the company. The time for closing and reopening positions and calculating overnight expenses is generally referred to as trade rollover tro. It should be noted that the overnight interest paid will be higher than the interest earned. If all positions in the account have been hedged, although the positions are equal as a whole, the overnight interest difference paid and obtained can still lead to loss. During the position transfer period, the bid ask spread may be larger than other times, because the liquidity provider may be temporarily disconnected to settle the transactions on the day. Please manage your position accordingly during position transfer and understand the impact of bid ask spread on trading with existing / open positions or new positions / orders
Fluctuating value per point
Exchange rate fluctuation or value per point is defined as the value of a currency to a point. This cost is equivalent to the profit or loss caused by each change in the exchange rate of the currency pair, which is displayed in the monetary unit of the account to which the transaction currency pair belongs. To view each value of any currency pair on various platforms of the company, you can select "display" in the menu bar, then click "window display", and then select "simple mode". If "simple mode" is selected, just click "simple quotation window" in the quotation window, and the value of each point will be displayed on the right of the window.
Quotation reversal difference
When you conduct international futures trading through the company's platform and buy and sell international futures or other contracts in the execution mode of no trader platform, you are trading with the quotation provided by multiple liquidity providers plus the ideas raised by the company. In rare cases, the quotation may be disturbed. Although this situation may only last for a short time, it will lead to the reversal of the price difference. The company suggests that customers should avoid establishing market price lists once they encounter such rare situations. Although "cost free transaction" is attractive, it must be borne in mind that these prices are not true, and the transaction price may differ greatly from the displayed price. If the transaction price is not the actual exchange rate provided to the company by the company's liquidity provider, the company will consider the relevant transaction invalid and reserves the right to cancel such transaction. In such cases, the customer can only set a range of orders or suspend the transaction to avoid the relevant risks.
Holiday / weekend execution
Trading desk time: the official trading hours of the trading desk are from 5:15 p.m. Eastern time on Sunday to 4:55 p.m. Eastern time on Friday. Please note that previously established orders may be executed before 5:00 p.m. Eastern time, while traders who establish transactions between 4:55 p.m. and 5:00 p.m. Eastern time may not be able to cancel pending orders. If the pre cancellation (GTC) market price list is just transmitted at the close of the market, it may not be implemented before the opening of the market on Sunday. Please be careful when you trade near the closing on Friday, and all the above information should be taken into account in your trading decision. The trading desk may change the opening or closing time because it relies on the quotation provided to the company by the liquidity provider. Most major banks and financial centers are closed outside the above hours. At the weekend, due to the lack of liquidity and trading volume, the execution of orders and quotation will be blocked.
Opening update quotation
Within a short time before opening, the trading desk shall update the quotation to reflect the current market price and prepare for opening. During this period, the transactions and orders reserved at the weekend are waiting to be executed, so the newly established orders cannot be executed at the market price. After opening, traders can establish new transactions and cancel or change the original hanging orders.
Market quotation jump
The opening price on Sunday may be the same as or different from the closing price on Friday. The exchange rate opened on Sunday is sometimes very close to the closing price on Friday; At other times, the closing price on Friday may be very different from the opening price on Sunday. In case of important news announcements or economic events that change the market's view on the value of a certain currency, the exchange rate may jump sharply. Traders holding positions or hanging orders over the weekend should be aware that prices may jump short.
Order instruction execution
Limit orders are usually executed at the requested or better price. If there is no specified price (or better price) in the market, the order will not be executed. When the market price reaches the required stop loss level at the opening of Sunday, the order will become a market order. The price limit hanging order will be executed in the same way as the price limit order. Stop loss orders will be executed in the same way as stop losses.
Weekend position risk
Some traders are worried that the market is very volatile during the weekend, and the exchange rate may jump sharply, or they think that the weekend risk is inconsistent with their own trading style, so they can directly close the hanging orders and positions before the weekend. If traders hold open positions over the weekend, they must understand the possible impact of major economic events and news announcements on the value of relevant positions. Based on the volatility of the market, it is not uncommon for prices to deviate from many ideas at the opening of the market. We encourage all traders to take this into account before making trading decisions.
Chart price and market price
It is very important to distinguish between the reference price (shown in the chart) and the tradable price (shown on the trading platform of the company). The reference quotation can indicate the market price and change range. These prices come from many aspects such as banks and clearing institutions and may not reflect the prices of the company's liquidity providers. The reference price is usually very close to the transaction price, but it can only play an indicative role in the actual market situation. Transaction quotation can ensure specific implementation and low transaction cost. Since there is no single central exchange for all transactions in the international futures market, the quotation of each international futures dealer is slightly different. Therefore, if the quotation of a third-party chart provider does not adopt the quotation of a market maker, it can only be used as a reference price and does not necessarily reflect the actual exchange rate that can be traded.
Mobile trading platform
There are a series of inherent risks in the use of mobile trading technology, such as repeated instructions, quotation delay and other problems caused by mobile connection. The price displayed on the mobile platform is only the display of the executable price, which may not reflect the actual execution price of the instruction.

Mobile trading platform uses public communication network lines to transmit information. The company will not be responsible for any and all situations such as quotation delay, inability to trade due to network line transmission problems or any other problems beyond the direct control of the company. Transmission problems include (but are not limited to) the strength of the mobile signal, the delay of the mobile phone or any other matters that may arise between you and any Internet service provider, telephone service provider or any other service provider.

Please note that some functions of our trading platform will not be provided on our mobile trading platform. The main differences include (but are not limited to) that the chart will be limited, daily overnight interest will not be displayed and maintenance margin requirements for each financial instrument will not be provided. It is highly recommended that customers familiarize themselves with the functions of the company's mobile trading platform before managing real accounts through mobile devices.
Order transaction sliding point
Sliding point the company is committed to providing customers with the best transaction execution and tries its best to complete all orders at the required price. Nevertheless, sometimes orders may be affected by the sliding point due to market fluctuations or increased trading volume. Slip points most often occur during basic news events or periods of limited liquidity. Taking the case of trading position transfer (5:00 p.m. EST) as an example, this is a well-known period with limited liquidity tendency, because many liquidity providers will settle the transactions on that day. During this period, your order category, the number required, and specific order instructions may affect the overall transaction execution you obtain.

Examples of specific instruction instructions include: valid before cancellation (GTC): your entire instruction will be executed at an available price upon receipt. Immediate or cancellation (IOC): all or part of your orders will be executed at an available price. If there is no liquidity to execute your orders immediately, the balance will be cancelled. Execute all or cancel immediately (FOK): the instruction must be executed in full, otherwise it will not be executed.

During market fluctuations, it may be difficult to execute orders. For example, when you execute your order, the price you get may vary a lot from the selected or quoted price based on market changes. In this case, the trader expects to execute the transaction at the specified price, but for example, the market may have deviated significantly from the price in less than one second. The trader's order will then be executed at an available price for that particular order. Similarly, based on the company's platform international futures execution model, there must be sufficient liquidity to execute all transactions at any price.

The company provides a variety of basic and advanced instruction categories to help customers reduce execution risk. One way to reduce the risk associated with sliding point is to use the "set range" function on the company's platform. The "set range" function allows traders to specify the amount of potential sliding points they are willing to accept on the market price list through a defined range. Zero indicates that sliding points are not allowed. If zero is selected in the "set range", it means that the trader requests to execute his order only at the price selected or quoted, not at any other price. Traders can choose to accept a larger allowable sliding point range to improve the chance of execution. In this case, the order will be executed at one of the following available prices within the specified range. For example, a customer may indicate that they are willing to accept a transaction within the range of 2 pips of the order price they require. If sufficient liquidity exists, the system will execute instructions within an acceptable range (i.e. 2 points). If the instruction cannot be executed within the specified range, the instruction will not be executed. Note that the setting range can only specify a negative range. If there is a better price when executing the transaction, the amount of positive price improvement that traders can obtain is not limited to the specified range.

In addition, when triggered, the stop loss will become a market order that can be executed by pressing an available market price. Stop loss guarantees the execution of the transaction, but does not guarantee that it can be executed at a specific price. Therefore, depending on market conditions, stop loss orders may slip.
Additional deposit and mandatory balance
When your available margin drops to 120%, a margin call alert will be triggered. Your account transaction column will be displayed in red and flashing continuously, which occurs when your floating loss reduces the net account value to less than or equal to your margin requirement. Therefore, unless otherwise noted, the consequence of any margin call will be the subsequent system forced liquidation.

The idea of margin trading is that the customer's margin is used as the actual deposit of the transaction face value of the position held by the customer, and the customer carrying out margin trading can hold a position whose value is much higher than the actual capital amount. The trading platform of the company has the function of margin management and allows the use of leverage. Of course, margin trading involves risk, because leverage may have a positive or negative impact on you. If the net account value falls below the margin requirement, the trading platform of the company will trigger an order to close all open positions. If the net value of the account is insufficient to maintain the opening position at that time due to excessive leverage or trading loss, it will cause margin calls, and all opening positions must be closed (automatic settlement).

Please remember that if the available margin on the account is zero, the account will start to start the red alert. When the margin ratio of your account is lower than the warning line of 120%, the system will close the current opening position from the position with the most loss. When the margin ratio is equal to or lower than 100%, The system will trigger forced closing of all open positions, and the automatic settlement program is designed to operate fully and automatically.

Although the function of margin call is to close the position when the net account value falls below the margin requirement, in some cases, there is no liquidity at the price of the actual margin call. Therefore, when executing the order, the net account value may fall below the margin requirements, or even lead to a negative account net value. This is particularly common when the exchange rate jumps short or is in a period of extreme fluctuations. The company recommends that traders use stop loss instead of margin call as the final stop loss to limit the downside risk.

We strongly recommend that customers maintain an appropriate margin amount in their accounts at all times. You can enter the user center and apply for adjusting the margin leverage ratio and changing your margin requirements, which will be approved by the company. The company may change the margin requirements according to the account size, opening position at the same time, trading mode and market conditions.