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Futures Risk Disclosure

Trading futures is akin to navigating capricious tides—while the potential for reward glimmers on the horizon, the depths beneath can be swift and unforgiving. Before setting sail, please consider:

Leverage and Margin Risk: Futures contracts require only a fraction of the contract value as margin, magnifying both gains and losses. A small market move can trigger significant account fluctuations and margin calls.
Market Volatility: Futures markets can surge and plunge without warning, driven by economic reports, geopolitical events, and shifting sentiment. Past calm seas offer no promise of future tranquility.
Unlimited Loss Potential: Unlike stock purchases, short futures positions carry theoretically unlimited risk, as prices can rise indefinitely.
Liquidity and Gapping: Thinly traded contracts or overnight gaps can prevent order execution at desired prices, resulting in slippage or unfilled orders.
Interest and Carry Costs: Holding certain futures positions over time may incur financing charges or roll costs, eroding returns if not carefully managed.
Psychological Factors: Fear and greed can cloud judgment. Discipline, risk controls, and a clear plan are your compass when emotions rise like storm winds.
No Guarantee of Profit: No strategy or system can eliminate risk. Every trade is a chance to learn; every loss, a lesson.
Consult Professionals: Ensure futures trading aligns with your financial goals, experience level, and risk tolerance. Seek advice from qualified advisors as needed.

By acknowledging these perils, you harness wisdom to trade with purpose and poise.

CFTC Hypothetical Performance Disclosure

The following describes hypothetical performance results, offered as a lantern in the dark but not a guarantee of safe passage:

Hypothetical or simulated performance results have inherent limitations. Unlike actual trading, they do not involve financial risk, and thus may not accurately reflect the impact of market conditions, liquidity, slippage, or execution delays. Because hypothetical trades are not subject to emotional pressures, performance may appear more optimistic than real-world results.
Key Limitations:
No Market Impact: Simulations assume orders fill at requested prices without moving the market.
Idealized Execution: No allowance for slippage, partial fills, or latency.
Cost Assumptions: Commissions, fees, margin interest, and spreads may be underestimated or omitted.
Data Integrity: Backtests rely on historical data that may lack intra-day quotes or corporate actions, potentially skewing outcomes.
Psychological Factors: Real trading involves emotional challenges—fear, greed, hesitation—that can materially affect decisions.
No Assurance of Future Results: Past or simulated performance does not guarantee future success. Real-world trading carries risks, and actual results will vary. Clients may lose some or all of their capital.
Seek Professional Guidance: Before trading, evaluate your objectives and financial situation, and consider consulting a qualified financial professional.