Volatility risk Clause Samples

Volatility risk. The asset allocation process is based on a careful statistical evaluation of past price performance. However, past performance is no guarantee of future results and the volatilities of individual securities may be markedly higher or lower than in the past.

Volatility risk. Prices of derivative warrants can increase or decrease in line with the implied volatility of underlying asset price. Investors should be aware of the underlying asset volatility.

Volatility risk. Volatility refers to the dynamic changes in price that securities undergo when trading activity continues on the stock exchange. Generally, higher the volatility of security, greater is its price swings. There may be normally greater volatility in thinly traded securities than in active securities. As a result of volatility, orders may only be partially executed or not executed at all or the price at which the order gets executed may be substantially different from the last traded price or change substantially thereafter, resulting in notional or real losses.

Volatility risk. Prices of derivative warrants can increase or decrease in line with the implied volatility of underlying asset price. The Customer should be aware of the underlying asset volatility. Limited Life: Unlike stocks, derivative warrants have an expiry date and therefore a limited life. Unless the derivative warrants are in-the-money, they become worthless at expiration. Deeply out- of-the-money warrants are less sensitive to movements in the price of the underlying asset because such warrants are unlikely to become in-the-money on expiry.

Volatility risk. Prices of DWs can increase or decrease in line with the implied volatility of underlying asset price. Investors should be aware of the underlying asset volatility.

Volatility risk. Prices of DWs and CBBCs can increase or decrease in line with the implied volatility of underlying asset price. Investors should be aware of the underlying asset volatility.

Volatility risk. Prices of derivative warrants can increase or decrease in line with the implied volatility of underlying asset price. Investors should aware of the underlying asset volatility. Investors trading CBBCs should be aware of their intraday “knockout” or mandatory call feature. A CBBC will cease trading when the underlying asset value equals the mandatory call price / level as stated in the listing documents. Investors will only be entitled to the residual value of the terminated CBBC as calculated by the product issuer in accordance with the listing documents. Investors should also note that the residual value can be zero. The issue price of a CBBC includes funding costs. Funding costs are gradually reduced over time as the CBBC moves towards expiry. The longer the duration of the CBBC is, the higher the total funding costs. In the event that a CBBC is called, investors will lose the funding costs for the entire lifespan of the CBBC. The formula for calculating the funding costs are stated in the listing documents. Investors are exposed to price movements in the underlying security and the stock market, the impact of dividends and corporate actions and counterparty risks. Investors must also be prepared to accept the risk of receiving the underlying shares or a payment less than their original investment. Investors may lose part or all of their investment if the price of the underlying security moves against their investment view. Investors should note that any dividend payment on the underlying security may affect its price and the payback of the ▇▇▇ at expiry due to ex-dividend pricing. Investors should also note that issuers may make adjustments to the ▇▇▇ due to corporate actions on the underlying security. While most ▇▇▇ offer a yield that is potentially higher than the interest on fixed deposits and traditional bonds, the return on investment is limited to the potential yield of the ▇▇▇. Investors should consult their brokers on fees and charges related to the purchase and sale of ▇▇▇ and payment / delivery at expiry. The potential yields disseminated by Hong Kong Exchanges and Clearing Limited have not taken fees and charges into consideration. Client assets received or held by BMI outside Hong Kong are subject to the applicable laws and regulations of the relevant overseas jurisdiction which may be different from the Securities and Futures Ordinance (Cap.571) and the rules made thereunder. Consequently, such client assets may not enjoy the same protecti...

Volatility risk. Volatility risk is associated with the price fluctuations of a security. Volatility is considered high when a security experiences significant price movements over a relative time period, whether it's daily for some types of instruments or longer for others. The risk of volatility is calculated based on the average difference between the lowest and highest prices of a financial instrument over a specific period.

Volatility risk. Volatility risk is the risk of changes in the value of financial product in any direction. High volatility generally means that the values of securities/contracts can undergo dramatic upswings and/or downswings during a short period. Such a high volatility can be expected relatively more in illiquid or less frequently traded securities/contracts than in liquid or more frequently traded one. Due to volatility, the order of a customer may not be executed or only partially executed due to rapid change in the market be solely responsible for the same and PSX or Securities and Exchange Commission of Pakistan (SECP) prices. Such volatility can also cause price uncertainty of the market orders as the price at which the shall not be held responsible/liable, in any manner whatsoever, for such negative consequences or losses. The customers must acknowledge and accept that there can be no guaranteed profit or guaranteed return on their invested capital and under no circumstances a broker can provide customers such guarantee or fixed return on their investment in view of the fact that the prices of securities and futures contract can fall as well as rise depending on the market conditions and performance of the companies. Customers order is executed can be substantially different from the last available market price or may change significantly thereafter, resulting in a real or notional loss.