Risk Disclosure

  • Trading | Risk Disclosure
Trading requires that traders be ready to sustain losses or lose their capital contributions, if required.  Trading is risky and is not a one – size fits all business for traders. Initial capital contribution, if made, will affect your rates, payout and terms of the agreement.

Traders shall agree to not  hold Obliix and its Clearing and Execution agents responsible against any losses, claims, liabilities, costs, expenses, and damages (including, without limitation, attorneys’ fees and expenses), in each case as incurred, arising directly or indirectly from any error or omission in the daily sheets or Clearance data and/or records. Traders must obtain the requisite securities licenses, registrations and authorizations in order to effect transactions and otherwise engage in brokerage activities consistent with regulatory mandates. Traders are personally responsible for ensuring that their securities licenses, registrations and authorizations are current and in good standing. Traders agree to abide by and comply with all applicable statutes, laws, rules, and regulations of all government, regulatory and self-regulatory authorities vested with authority over the parties and transactions contemplated herein. Traders further agree to abide by and comply with all policies and procedures of Obliix and its Clearing Firm.

Proprietary trading may involve the use of leverage, which may include using Obliix funds and/or securities in order to take positions in securities. Buying power may not be directly correlated to capital accounts. It is important that Traders fully understand the risks involved in the trading style they employ, which includes the possibility of losing more funds than in their capital account.

Traders may be restricted from trading in certain securities.   Traders are subject to firm sanctions, including fine, dismissal or   disassociation, and potential prosecution under federal securities laws for any illegal or improper activity conducted. Please be advised that the NASDAQ, NYSE, AMEX, Obliix and its clearing or executing broker will be monitoring such trading activities so as to detect any such illegal or improper activity.

Proprietary trading may involve “Day Trading”. Day trading is not investing, it is speculating. As with any form of speculation, there are significant risks. Day trading is fast-paced and high intensity strategy, and the excitement and stimulation of day trading can be very attractive and habit forming, separate from any financial results. Your earnings/losses should be carefully monitored.   Any extension of credit will be allocated interest at a varying rate to be determined by Obliix.

Past experience does not predict future results. Any success enjoyed by others using day trading strategies does not guarantee similar results for you. Only risk capital should be used, and the rigid observation of a system of “stops” for loss control is strongly recommended to prevent large losses from mounting rapidly. Individuals who have failed to keep tight “stops” while day trading have sustained substantial losses. Cutting losses quickly is an essential cornerstone of successful day trading.

Transaction fees or ticket charges (collectively “fees”) may add up to a substantial amount. For many successful traders, fees consume a substantial portion of gross profits. Understand the fee schedule, if applicable.  Trades may be subject to additional fees or charges dependant on the venue on which they are executed.

Professional traders, funds, specialists, and market makers are also trading securities on a short-term basis. This will cause movements in bid and offer prices and sizes, as well as other changes in the pricing information. These changes may lead a trader to believe that certain transactions will be profitable, when in fact, these conditions may quickly disappear, leaving the trader in an unprofitable position.

Continuing to hold positions intended for short-term speculation after the end of the trading day introduces a new level of risk. Securities   suitable for day trading are volatile. Various regulatory bodies can halt trading and news outlets can release very helpful or damaging news, causing a stock to open for trading the next day at a price very different from its closing price with no intervening opportunity to exit the trade. Trades executed during a halted market are strictly prohibited. Traders are personally responsible for ensuring that no trades are executed in their account in a stock subject to a halted market.

News outlets can release very damaging or helpful news concerning a security that can cause very sudden, drastic price moves, with very limited opportunities to exit the trade. Obliix does not provide investment advice and does not make any recommendations. In no event shall information provided by Obliix serve as the primary basis for any investment decision made by you. Your decisions to make trades are your own responsibility. Obliix does not represent any trading opportunities as superior to any others. Obliix shall have no responsibility with respect to the authority, propriety, suitability, accuracy, correctness or completeness of any order entered by a Trader, and shall be entitled to rely upon any such order without inquiry or investigation.

Disruptions in the electronic trading systems or lines used by Obliix, its Clearing or Executing Broker, the NASDAQ, NYSE, or any other quoting or executing venue could disrupt trading and the liquidity and availability of timely execution could diminish substantially. If this occurs during periods of volatility, substantial losses may be incurred. In no event shall Obliix be liable for losses, claims, liabilities, costs, expenses and damages that occur due to the disruption or failure of any computer, line, or system,   regardless of whether such disruptions or failure may have been anticipated by Obliix.

Liquidity refers to the ability of market participants to buy and sell securities. Generally, the more orders that are available in a market, the greater the liquidity. Liquidity is important because with greater liquidity it is easier for investors to buy or sell securities, and as a result, investors are more likely to pay or receive a competitive price for securities purchased or sold. There may be decreased liquidity in extended hours trading as compared to regular market hours. As a result, your order may only be partially executed, or not at all.

Volatility refers to the fluctuations in price that securities undergo during market trading. Generally, the higher the volatility of a security, the greater its price swings. There may be greater volatility in extended hours trading than in regular market hours. As a result, your order may only be partially executed, or not at all, or you may receive an inferior price in extended hours trading than you would during regular market hours.

Depending on the extended hours trading system or the time of day, the prices displayed on a particular extended hours trading system may   not reflect the prices available in other concurrently operating extended hours trading systems dealing in the same securities. Accordingly, you may receive an inferior price in one extended hours trading system than you would in another extended hours trading system.

The spread refers to the difference between the price at which you can buy a security and the price at which you can sell a security. Lower liquidity and higher volatility in extended hours trading may result in wider than normal spreads for a particular security.

Discretionary Proprietary Trading

Training Program

Quantitative Trading

Close Menu