Disclaimer
DERIVATIVES RISK DISCLOSURE
The risk of loss in trading in futures contracts, contracts for difference or
other leveraged markets can be substantial. You should therefore carefully
consider whether that kind of trading is appropriate for you in the light of
your financial circumstances. In deciding whether or not you will become
involved in that kind of trading, you should be aware of the following matters:
1. You could sustain a total loss of the initial margin funds that you
deposit with your broker to establish or maintain a position either on exchange
or off exchange.
2. If the market moves against your position, you may be required, at
short notice, to deposit with your broker additional funds in order to maintain
your position. Those additional funds may be substantial. If you fail to
provide those additional funds within the required time, your position may be
liquidated at a loss and in that event you will be liable for any shortfall in
your account resulting from that failure.
3. Under certain conditions, it could become difficult or impossible for you to
liquidate a position (this can, for example, happen when there is a significant
change in prices over a short period).
4. The placing of contingent orders (such as a "stop-loss" order) may not
always limit your losses to the amounts that you may want. Market conditions
may make it impossible to execute such orders.
5. A "spread" position is not necessarily less risky than a simple "long" or
"short" position.
6. The high degree of leverage that is obtainable in derivatives trading
because of small margin requirements can work against you as well as for you.
The use of leverage can lead to large losses as well as large gains.
This statement does not disclose all of the risks and other significant aspects
involved in trading derivatives. You should therefore study derivatives
trading carefully before becoming involved in it.
FOREIGN DERIVATIVES RISK DISCLOSURE
The risk in trading derivatives on non-Australian exchanges or over the counter
based on non-Australian financial instruments can be substantial. Therefore you
should carefully consider whether such trading is suitable for you in light of
your financial condition. In considering whether to trade foreign derivatives,
you should be aware of the following:
1. Participation in foreign derivatives markets involves the execution and
clearing of trades on or subject to the rules of a foreign exchange.
2. The activities of foreign exchanges are outside the regulation of the
Australian Securities and Investment Commission and Australian Regulatory
Bodies do not have the power to compel enforcement of the rules of a foreign
exchange or any applicable foreign law.
3. Protective provisions of Australian legislation such as the Corporations Law
may not apply to clients who trade foreign derivatives. Therefore you should
obtain as much information as possible from your broker concerning the foreign
rules, particularly as regards protection of your funds, which will apply to
foreign derivatives transactions that may be carried out on your behalf.
4. You should also be aware that the price of any foreign derivative and,
therefore, the potential profit and loss therein, may be affected by any
variance in the foreign exchange rate between the time your order is placed and
the time it is liquidated, offset or exercised.
PAST PERFORMANCE WARNING
The performance of individual traders varies significantly and will depend on
factors such as but not limited to account size, leverage used, slippage
incurred, brokerage paid, the level of diversification, general trading
conditions of the markets chosen and particularly the discipline of the trader
to follow the rules of the trading system.
Gerling & Company Pty Ltd discloses in its home study course and live
seminars sample trading systems and gives instructions on how to apply the
trading rules in the markets. The trader is encouraged to simulate the trading
system and position sizing model chosen with back data over a longer time
period and a well diversified portfolio of markets to ascertain that the
trading system and position sizing model chosen is appropriate for him in light
of his trading objectives and personal circumstances. Gerling & Company Pty
Ltd does not provide personal advice. Even if the past performance of the
trading strategies simulated is deemed satisfactory to the trader the future
performance is not necessarily similar to the past performance. Trading
conditions may in future be different to the ones experienced so far. Moreover,
the trader may have difficulties in applying strategies chosen in a consistent
and disciplined manner.
Gerling & Co provide recommendations to clients using predominantly
mechanical trading systems such as the ones discussed in the home study course
or live seminars. Not all clients follow all the trading signals. Accordingly,
the results stated in the daily recommendations are NOT a reflection of any one
particular person's trading activity, but rather the returns are a calculated
average. In calculating this average return, Gerling & Co takes the actual
results of the transactions traded across all clients (including the house
account) who have elected to follow the trading recommendations and from this
information determines an "average" executed price and uses this average price
in determining the "performance result" or "return".
Not all clients achieve these results, with some clients making trading losses.
The percentage return will depend upon the amount of leverage used. A higher
level of leverage will result in a higher percentage of profits and losses. A
lower level of leverage will result in a lower percentage of profits and
losses. The returns will vary depending upon the amount of funds you have to
invest, the contracts traded, the exit strategy chosen and your discipline in
following recommendations by the trading system. The risk of loss in trading
can be substantial. You should therefore carefully consider whether trading is
appropriate for you in light of your personal and financial circumstances.
PROSPECTIVE TRADERS ARE CAUTIONED THAT THE AVERAGE RESULTS ARE NOT
NECESSARILY INDICATIVE OF THE RESULTS WHICH MAY BE ACHIEVED IN THE FUTURE. PAST
RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. NO REPRESENTATION IS
MADE ABOUT FUTURE PROFITS.
GENERAL ADVICE WARNING
THE PROVIDING ENTITY ONLY GIVES GENERAL ADVICE.
GENERAL ADVICE IS DEFINED AS FINANCIAL PRODUCT ADVICE WHICH IS NOT PERSONAL
ADVICE. IN PROVIDING THE GENERAL ADVICE THE CLIENT'S PERSONAL FINANCIAL
SITUATION, OBJECTIVES AND NEEDS (INCLUDING ATTITUDE TO RISK) HAVE NOT BEEN
CONSIDERED BY THE PROVIDING ENTITY. FURTHERMORE, NO CLIENT SHOULD EXPECT THE
PROVIDING ENTITY TO HAVE CONSIDERED SUCH MATTERS.
THE CLIENT IS ENCOURAGED TO SEEK PERSONAL ADVICE FROM A LICENCED FINANCIAL
ADVISOR BEFORE USING ANY SERVICES OR PRODUCTS FROM THE PROVIDING ENTITY.