Common use of Leverage Clause in Contracts

Leverage. By entering into this Agreement, Clients acknowledge, agree and accept that they understand the concepts of Leverage. 6.1. Trading on leveraged capital means the Client can make trades with values that are significantly higher than the funds they actually invest, which only serve as the Clients Margin. High Leverage can significantly increase the potential return, but equally it can also significantly increase potential losses. The leverage is specified as a ratio such as 1:100, 1:200, 1:300, 1:400 and 1:500 or such other ratio that the Company may introduce from time to time based on applicable Laws and Regulations. 6.2. Clients from various regions or countries might be subjected to lower leverage allowance as instructed by their local regulatory authorities 6.3. The Company reserves the right to apply leverage ratios to a particular asset class or part thereof (e.g. the Commodities asset class) and not to individual financial instruments within such asset class. 6.4. Notwithstanding the provisions set out above, the Company may restrict the default and/or any selected Leverage ratios at any time and without notice if the Company considers this to be in the Clients best interest or this is required by applicable Laws and Regulations or the Company at its entire discretion, considers it necessary having regard to prevailing or expected market conditions and volatility. 6.5. Whilst the Company will endeavor to give Clients reasonable notice of such action, the Clients acknowledge and agree that especially at times of increased actual or expected market volatility caused by either foreseen or unforeseen political and economic events, the Company may proceed to such changes whilst notifying its Clients of these only at the same time.

Appears in 11 contracts

Sources: Terms and Conditions, Terms and Conditions, Terms and Conditions