Risk Statement

Before you apply to begin trading with us, you must carefully consider whether using CFD Trading including Foreign Exchange Margin Trading is appropriate for you in the light of your circumstances and financial position. You should be aware that margin trading is a high risk geared investment strategy and we do not consider it suitable for many members of the public. You should not deal unless you understand the nature of the contract you are entering into and the extent of your exposure to risk from that contract.

CFD Trading involves different levels of exposure to risk and, in deciding whether to trade in such instruments, you should be aware of the following points of our Statement of Important Matters:

14. Matters to Confirm Regarding Risk of Trading

14.1 FX Transactions
FX margin trading is a high-risk, high-return form of trading, accordingly it is not an investment that suits everyone. Before you commence trading, please consider first whether or not FX margin trading is a type of investment that suits your financial resources, trading experiences and investment purposes etc.

(i) Exchange Rate Fluctuation Risk
Currency fluctuates due to political and economic factors worldwide and other various factors. Please note that FX margin trading is always exposed to currency fluctuation risk. Because the FX margin transaction is conducted using a leverage effect, for which the gross amount of trade shall be much greater than the amount of Initial Margin, fluctuations on foreign currency markets may provide significant gains, but significant losses may also be incurred over a short period.

In the event that your amount of Available Margin Balance is less than the level prescribed by us, we shall, without notice to you, make Forced Settlement by cancelling your orders or closing your open positions on your account.
In the event that foreign exchange market moves materially against you, you may suffer a loss greater than your margin requirement as a result of “Forced Settlement.” In such case, you must pay this additional loss by 3pm on the next bank business day.
When the 2nd named currency (the currency displayed on the right side) is not the base currency on your account, you are exposed to foreign exchange risk as the unrealised profit/loss from the transaction will be affected by the fluctuations of foreign exchange rates. This can result in a reduction of your Equity, which can go below the minimum margin level required by us and result in Forced Settlement.

(ii) Interest-Rate Risk
When trading foreign exchange, spot rates can move sharply due to fluctuations in interest rates that relate to the relevant currency pair. Similarly, daily swap points are affected by those interest-rate fluctuations.

(iii) Credit Risk
When trading foreign exchange, spot rates can move sharply due to fluctuations in interest rates that relate to the relevant currency pair. Similarly, daily swap points are affected by those interest-rate fluctuations.

(iv) Spread increase on FX transactions before and after Publication of Indices / Weekends or Beginning of the Week
Acts of God, war, terrorism or the holding of important international conferences and events may have a major impact on the foreign exchange market. In addition, publication of economic indicators can cause major market price fluctuations. On weekends and in the beginning of the week, foreign exchange markets may be subject to lower liquidity. Please be aware that there are spread increases on these markets. Following a spread increase, the Available Margin Balance may decrease or Forced Settlement may occur.

(v) Slippage Risk
A stop order is automatically executed at the prevailing market price when the order level is reached and therefore the actual stop level could end up differing from your specified level and you may suffer more loss than you have expected.

On foreign exchange markets, opening prices may start at a level that differs greatly from the closing at the end of the previous week. In such cases, even if a stop order has been made, it may be executed at a level which is greatly different from the order level.
At the time of publication of important economic indicators etc., and at the time of markedly rapid fluctuations in market price, there may sometimes be a substantial gap between your specified stop order level and the actual stop price achieved.

(vi) Liquidity Risk
The foreign exchange market sometimes sees drastic market fluctuations.

With FX Transactions, the buy-sell spread widens during the hours when the relevant foreign exchange market has low liquidity or when it is experiencing a high volatility. As the spread widens your Equity will decrease, which may result in an exercise of Forced Settlement. In such an event, it could become difficult to settle your FX positions or place orders to open, resulting in your open positions forcibly closed by us.
FX Transactions could be suspended due to regulatory restrictions of certain countries, which can result in the malfunction of FX transactions leading to a practical inability to trade certain currencies.
Please note that trading may be difficult to execute when there occurs an event such as war, act of God, dispute or change of exchange policy or regulations of the relevant country.

(vii) Risk Associated with Online Trading
Since the FX margin transaction is an electronic transaction using the internet, it carries the risks that accompany electronic transactions.

In the event of malfunction or breakdown in the telecommunication lines or system devices that belong to you or third parties, there may be limitations on FX margin trading.
In the event of malfunctioning or breakdown in our telecommunication lines or system devices, your opportunities for gain may be lost.
In Internet trading your mistakes inputting trading orders may result in executions at a non desired level.
In addition, if your account number, password, etc. for the FX margin trading are disclosed to a third party due to theft or eavesdropping, etc., unexpected losses may be suffered.

(viii) Other Risks
Due to market conditions and under other circumstances, we reserve the right to modify the Standard Margin rate at our discretion. You acknowledge that such change can result in the fluctuation of your Margin amount and this cause your loss to be realised by Forced Settlement or any of your unexecuted orders to be forcibly cancelled.

14.2 Stock Index CFDs
Trading Stock Index CFDs is a high-risk, high-return form of trading, accordingly it is not an investment that suits everyone. Before you commence trading, please consider first whether or not Stock Index CFD trading is an investment means that suits your financial resources, trading experiences and investment purposes etc.

(i) Stock Indices Price Fluctuation Risk
Stock index prices that form part of your Stock Index CFD Trading fluctuate due to political and economic factors worldwide and other various factors.

Because Stock Index CFD Trading is conducted using a leverage effect, for which the gross amount of transaction shall be much greater than the amount of Initial Margin, fluctuations on Stock Index prices may provide significant gains, but significant losses may also be incurred over a short period.
In the event that your amount of Equity is less than the level prescribed by us, we shall, without notice to you, make Forced Settlement by cancelling your unexecuted orders or closing your open positions on your account.
In the event that a Stock Index market moves materially against you, you may suffer a loss greater than your margin requirement as a result of “Forced Settlement.” In such case, you must pay this additional loss by 3pm on the next banking business day.
When the currency involving your Stock Indices transaction is not the base currency of your account(Yen or Dollar), you are exposed to foreign exchange risk as the unrealised profit/loss from the transaction will be affected by the fluctuations of foreign exchange rates. This can result in a reduction of your Equity, which can go below the minimum margin level required by us and result in Forced Settlement.

(ii) Interest-Rate Risk
Stock Index prices can move sharply due to interest-rate fluctuations. Funding costs are affected by Stock Index prices as well as interest-rate fluctuations.

(iii) Credit Risk
Because Stock Index CFD Trading is a negotiated transaction between you and us, it is possible that you may sustain losses due to our credit status. Although your deposited margin will be kept separately from our assets, the repayment of such margin shall not be covered under any public investor protection system in Japan. Therefore it is possible that you may sustain losses in the event that our credit status or that of our transaction banks etc deteriorate. As for Stock Index CFD Trading, credit deterioration of the constituents of Stock Indices can cause the prices to dip.

(iv) Slippage Risk
A stop order is automatically executed at the market price when the order level is reached and the actual stop level can end up differing from the order level and you may suffer more loss than you have expected.

Stock Index CFD Trading does not operate for 24 hours a day and as such there are non-trading hours.
Open prices could differ greatly from the close prices of the previous day. In such cases, even if you have placed a stop order, the actually executed stop level may deviate greatly from the order level.
At the time of publication of important economic indicators etc., and when the market price fluctuates sharply, there may sometimes be a substantial gap between the stop order price and the executed price.

(v) Liquidity Risk
Stock Index CFD Trading does not operate for 24 hours a day, as such there are non-trading hours which could sometimes see drastic market fluctuations.

During non-trading hours, you cannot open new positions nor close existing positions.
In the event that Stock Index CFD Trading is suspended due to the market reaching the trading limit, it could hinder conducting your trading.
When trading Stock Index CFDs, the market spread (spread between the Bid and Ask prices) widens during non-trading hours of the corresponding Futures market, which underpins the Stock Index prices. This can trigger your Equity to be reduced, resulting in your positions being automatically closed out.
When trading Stock Index CFDs, there may be a limit on the contract size. In those events and when we find that your order sizes are large, we reserve the right to cancel any such orders at our sole discretion, resulting in your open positions not being closed out as you intended.
Shares or Stock Index CFD Trading could be suspended due to regulatory restrictions of certain countries and exchanges or system failure, leading to a widening of the market spread(spread between the Bid and Ask prices) and/or a practical inability to trade Stock Indices.
Please note that trading may be difficult to execute or the market spread (spread between the Bid and Ask prices) widens when an event occurs, such as war, act of God, dispute or change of exchange policy or regulations of the relevant country.

(vi) Risk Associated with Online Trading
Since Stock Index CFD Trading is an electronic transaction using the internet, it carries the risks that accompany electronic transactions.

In the event of malfunction or breakdown in the telecommunication lines or system devices that belong to you or third parties, there may be limitations on Stock Index CFD Trading.
In the event of malfunctioning or breakdown in our telecommunication lines or system devices, your opportunities for gain may be lost.
In Internet trading, your mistakes of inputting trading orders may result in executions at a non desired level.
In addition, if your account number, password, etc. for Stock Index CFD Trading account are disclosed to a third party due to theft or eavesdropping, etc., unexpected losses may be suffered.

(vii) Other Risks
Due to market conditions and under other circumstances, we reserve the right to modify the Standard Margin rate at our discretion. You acknowledge that such change can result in the fluctuation of your Margin amount and this causes your loss to be realised by Forced Settlement or any of your unexecuted orders to be forcibly cancelled.

14.3 Stock Index Futures CFDs
Trading Stock Index Futures CFDs is a high-risk, high-return form of trading, accordingly it is not an investment that suits everyone. Before you commence trading, please consider first whether or not Stock Index Futures CFD trading is an investment means that suits your financial resources, trading experiences and investment purposes etc.

(i) Stock Index Futures Price Fluctuation Risk
Stock index futures prices that form part of your Stock Index Futures CFD Trading fluctuate due to political and economic factors worldwide and other various factors.

Because Stock Index Futures CFD Trading is conducted using a leverage effect, for which the gross amount of transaction shall be much greater than the amount of Initial Margin, fluctuations on Stock Index Futures prices may provide significant gains, but significant losses may also be incurred over a short period.
In the event that your amount of Equity is less than the level prescribed by us, we shall, without notice to you, make Forced Settlement by cancelling your unexecuted orders or closing your open positions on your account.
In the event that a Stock Index Futures market moves materially against you, you may suffer a loss greater than your margin requirement as a result of “Forced Settlement.” In such case, you must pay this additional loss by 3pm on the next banking business day.
When the currency involving your Stock Indices transaction is not the base currency of your account(Yen or Dollar), you are exposed to foreign exchange risk as the unrealised profit/loss from the transaction will be affected by the fluctuations of foreign exchange rates. This can result in a reduction of your Equity, which can go below the minimum margin level required by us and result in Forced Settlement.

(ii) Interest-Rate Risk
Stock Index Futures prices can move sharply due to interest-rate fluctuations.

(iii) Credit Risk
Because Stock Index Futures CFD Trading is a negotiated transaction between you and us, it is possible that you may sustain losses due to our credit status.

Although your deposited margin will be kept separately from our assets, the repayment of such margin shall not be covered under any public investor protection system in Japan. Therefore it is possible that you may sustain losses in the event that our credit status or that of our transaction banks etc deteriorate.
As for Stock Index Futures CFD Trading, credit deterioration of the constituents of Stock Indices can cause the prices to dip.

Stock Index Futures CFD Trading does not operate for 24 hours a day and as such there are non-trading hours.
Open prices could differ greatly from the close prices of the previous day. In such cases, even if you have placed a stop order, the actually executed stop level may deviate greatly from the order level.
At the time of publication of important economic indicators etc., and when the market price fluctuates sharply, there may sometimes be a substantial gap between the stop order price and the executed price.

(v) Liquidity Risk
Stock Index Futures CFD Trading does not operate for 24 hours a day, as such there are non-trading hours which could sometimes see drastic market fluctuations.

During non-trading hours, you cannot open new positions nor close existing positions.
In the event that Stock Index Futures CFD Trading is suspended due to the market reaching the trading limit, it could hinder conducting your trading.
When trading Stock Index Futures CFDs, the market spread (spread between the Bid and Ask prices) widens during non-trading hours of the corresponding Futures market, which underpins the Stock Index Futures prices. This can trigger your Equity to be reduced, resulting in your positions being automatically closed out.
When trading Stock Index Futures CFDs, there may be a limit on the contract size. In those events and when we find that your order sizes are large, we reserve the right to cancel any such orders at our sole discretion, resulting in your open positions not being closed out as you intended.
Shares or Stock Index Futures CFD Trading could be suspended due to regulatory restrictions of certain countries and exchanges or system failure, leading to a widening of the market spread(spread between the Bid and Ask prices) and/or a practical inability to trade Stock Index Futures.
Please note that trading may be difficult to execute or the market spread (spread between the Bid and Ask prices) widens when an event occurs, such as war, act of God, dispute or change of exchange policy or regulations of the relevant country.

(vi) Risk Associated with Online Trading
Since Stock Index Futures CFD Trading is an electronic transaction using the internet, it carries the risks that accompany electronic transactions.

In the event of malfunction or breakdown in the telecommunication lines or system devices that belong to you or third parties, there may be limitations on Stock Index Futures CFD Trading.
In the event of malfunctioning or breakdown in our telecommunication lines or system devices, your opportunities for gain may be lost.
In Internet trading, your mistakes of inputting trading orders may result in executions at a non desired level.
In addition, if your account number, password, etc. for Stock Index Futures CFD Trading account are disclosed to a third party due to theft or eavesdropping, etc., unexpected losses may be suffered.

14.4 Share CFD Trading
Trading Share CFDs is a high-risk, high-return form of trading, accordingly it is not an investment that suits everyone. Before you commence trading, please consider first whether or not Share CFD trading is an investment means that suits your financial resources, trading experiences and investment purposes etc.

(i) Share Price Fluctuation Risk
Share prices that form part of the underlying Shares CFD Trading fluctuate due to political and economic factors worldwide and other various factors.

Because Share CFD Trading is conducted using a leverage effect, for which the gross amount of transaction shall be much greater than the amount of Initial Margin, fluctuations on Share prices may provide significant gains, but significant losses may also be incurred over a short period.
In the event that your amount of Equity is less than the level prescribed by us, we shall, without notice to you, make Forced Settlement by cancelling your unexecuted orders or closing your open positions on your account.
In the event that Share prices moves materially against you, you may suffer a loss greater than your margin requirement as a result of “Forced Settlement.” In such case, you must pay this additional loss by 3pm on the next banking business day.
When the currency involving your Share CFD transaction is not the base currency of your account (e.g. Yen or US Dollar), you are exposed to foreign exchange risk as unrealised profit/loss from your transaction will be affected by the fluctuations of foreign exchange rates, resulting in a reduction of your Equity, which can go below the minimum margin level required by us.

(ii) Interest-Rate Risk
Share prices sometimes move sharply due to interest-rate fluctuations. Daily funding costs are affected by share price as well as interest-rate fluctuations.

(iii) Credit Risk
Because Share CFD Trading is a negotiated transaction between you and us, it is possible that you may sustain losses due to our credit status.

Although your deposited margin will be kept separately from our assets, the repayment of such margin shall not be covered by under any public investor protection system in Japan. Therefore it is possible that you may sustain losses in the event of deterioration in our credit status or our transaction banks etc.
When trading share CFDs, credit deterioration of the underlying companies can cause prices to sharply worsen or even become worthless, making it necessary for us to raise the Maintenance Margin rate.

Shares CFD Trading does not operate for 24 hours a day and as such there are non-trading hours.
Opening prices can differ greatly from the closing prices of the previous day. In such cases, even if you have placed a stop order, the actually executed stop level may deviate greatly from the order level.
At the time of publication of important economic indicators etc., and when the market price fluctuates sharply, there may sometimes be a substantial gap between the stop order price and the executed price.

(v) Liquidity Risk
Shares CFD Trading does not operate for 24 hours and there are non-trading hours and could sometimes see drastic market fluctuations.

During non-trading hours, you cannot open new positions nor close existing positions.
When trading Share CFDs, we normally quote the Bid and Ask prices equivalent to those in the underlying market. When the liquidity is low, market spread (spread between the Bid and Ask prices) moves sharply. Widening of the market spread could mean that your Equity is diminished, resulting in your positions being automatically closed out by our Forced Settlement procedure.
When trading Share CFDs, there may be a limit on the contract size. In those events and when we find that your order sizes are large, we reserve the right to cancel any of such orders at our sole discretion, resulting in your open positions not being closed out as you intended.
In the event that Share CFD Trading is suspended due to the underlying share prices reaching a trading limit, it could hinder conducting your trading.
Share CFD Trading could be suspended due to regulatory restrictions of certain countries and exchanges or system failure, leading to a practical inability to trade Share CFDs.
When trading Share CFDs, it may occur from time to time that opening short position becomes difficult because of share liquidity and regulations imposed by the authorities. And your existing short position may be closed at our discretion should it become impossible to procure from our cover bank, etc. the relevant shares which comprise the underlying instruments.
Please note that trading may be difficult to execute and that market spread (the spread between the Bid and Ask prices) may widen when there occurs an event such as war, act of God, dispute or change of exchange policy or regulations of the relevant country.

(vi) Risk Associated with Online Trading
Since Shares CFD Trading is an electronic transaction using the internet, it carries the risks that accompany electronic transactions.

In the event of malfunction or breakdown in the telecommunication lines or system devices that belong to you or third parties, there may be limitations on Share CFDs Trading.
In the event of malfunctioning or breakdown in our telecommunication lines or system devices, your opportunities for gain may be lost.
In Internet trading, your transaction could end up being executed at a non-desired level should you mistakenly input your trading orders.
In addition, if your account number, password, etc. for Shares CFD Trading account were disclosed to a third party due to theft or eavesdropping, etc., unexpected losses may be suffered.

(vii) Other Risks
Due to market conditions and under other circumstances, we reserve the right to modify the Standard Margin rate at our discretion. You acknowledge that such change can result in the fluctuation of your Margin amount and this could cause your loss to be realised by Forced Settlement or any of your unexecuted orders to be forcibly cancelled.

14.5 Bond Futures CFDs
Trading Bond Futures CFDs is a high-risk, high-return form of trading, accordingly it is not an investment that suits everyone. Before you commence trading, please consider first whether or not Bond Futures CFD trading is an investment means that suits your financial resources, trading experiences and investment purposes etc.

(i) Price Fluctuation Risk
Bond Futures prices that form part of your Bond Futures CFD trading fluctuate due to political and economic factors worldwide and other various factors.

Because Bond Futures CFD Trading is conducted using a leverage effect, for which the gross amount of transaction shall be much greater than the amount of Initial Margin, fluctuations on Bond Futures prices may provide significant gains, but significant losses may also be incurred over a short period.
In the event that your amount of Equity is less than the level prescribed by us, we shall, without notice to you, make Forced Settlement by cancelling your unexecuted orders or closing your open positions on your account.
In the event that a Bond Futures market moves materially against you, you may suffer a loss greater than your margin requirement as a result of “Forced Settlement.” In such case, you must pay this additional loss by 3pm on the next banking business day.
When the currency involving your Bond Futures CFD transaction is not the base currency of your account(Yen or Dollar), you are exposed to foreign exchange risk as the unrealised profit/loss from the transaction will be affected by the fluctuations of foreign exchange rates. This can result in a reduction of your Equity, which can go below the minimum margin level required by us and result in Forced Settlement.

(ii) Interest-Rate Risk
Bond Futures CFD prices can move sharply due to interest-rate fluctuations.

(iii) Credit Risk
Because Bond Futures CFD Trading is a negotiated transaction between you and us, it is possible that you may sustain losses due to our credit status.

Although your deposited margin will be kept separately from our assets, the repayment of such margin shall not be covered under any public investor protection system in Japan. Therefore it is possible that you may sustain losses in the event that our credit status or that of our transaction banks etc deteriorate.

Bond Futures CFD Trading does not operate for 24 hours a day and as such there are non-trading hours.
Opening prices could differ greatly from the closing prices of the previous day. In such cases, even if you have placed a stop order, the actually level at which the stop is executed may deviate greatly from the order level.
At the time of publication of important economic indicators etc., and when the market price fluctuates sharply, there may sometimes be a substantial gap between the stop order price and the executed price.

(v) Liquidity Risk
Bond Futures CFD Trading does not operate for 24 hours a day, as such there are non-trading hours which could sometimes see drastic market fluctuations.

During non-trading hours, you cannot open new positions nor close existing positions.
With Bond Futures CFD Trading, the buy-sell spread widens during the hours when the market of relevant underlying asset has low liquidity. As the spread widens your Equity will decrease, which may result in an exercise of Forced Settlement.
In the event that Bond Futures Trading on the relevant underlying exchange is suspended, e.g. because the market has reached an exchange trading limit, it could hinder your ability to conduct CFD trading on the relevant underlying instrument.
When trading Bond Futures CFDs, there may be a limit on the contract size. In those events and when we find that your order sizes are large, we reserve the right to cancel any such orders at our sole discretion, resulting in your open positions not being closed out as you intended.
Bond Futures CFD Trading could be suspended due to regulatory restrictions of certain countries and exchanges or system failure, leading to a widening of the market spread (spread between the Bid and Ask prices) and/or a practical inability to trade Bond Futures.
Please note that trading may be difficult to execute or the market spread (spread between the Bid and Ask prices) widens when an event occurs, such as war, act of God, dispute or change of exchange policy or regulations of the relevant country.

(vi) Risk Associated with Online Trading
Bond Futures CFD Trading is an electronic transaction using the internet, it carries the risks that accompany electronic transactions.

In the event of malfunction or breakdown in the telecommunication lines or system devices that belong to you or third parties, there may be limitations on Bond Futures CFD Trading.
In the event of malfunctioning or breakdown in our telecommunication lines or system devices, your opportunities for gain may be lost.
In Internet trading, your mistakes of inputting trading orders may result in executions at a non desired level.
In addition, if your account number, password, etc. for Bond Futures CFD Trading account are disclosed to a third party due to theft or eavesdropping, etc., unexpected losses may be suffered.

14.6 Commodity Spot CFDs
Commodity Spot CFD trading is a high-risk, high-return form of trading, accordingly it is not an investment that suits everyone. Before you commence trading, please consider first whether or not Commodity Spot CFD trading is a type of investment that suits your financial resources, trading experiences and investment purposes etc.

(i) Price Fluctuation Risk
Commodity Spot CFD prices fluctuate due to political and economic factors worldwide and other various factors.

Because Commodity Spot CFD transactions are conducted using a leverage effect, for which the gross amount of trade shall be much greater than the amount of Initial Margin, fluctuations on Commodity markets may provide significant gains, but significant losses may also be incurred over a short period.
In the event that your amount of Available Margin Balance is less than the level prescribed by us, we shall, without notice to you, make Forced Settlement by cancelling your orders or closing your open positions on your account.
In the event that the Commodity market moves materially against you, you may suffer a loss greater than your margin requirement as a result of “Forced Settlement.” In such case, you must pay this additional loss by 3pm on the next bank business day.
When the currency in your Commodity Spot CFD transaction is priced is not the base currency on your account, you are exposed to foreign exchange risk as the unrealised profit/loss from the transaction will be affected by the fluctuations of foreign exchange rates. This can result in a reduction of your Equity, which can go below the minimum margin level required by us and result in Forced Settlement.

(ii) Interest-Rate Risk
When trading Commodity Spot CFDs, prices may fluctuate due to fluctuations in interest rates. Similarly, daily swap points are affected by those interest-rate fluctuations.

(iii) Credit Risk
Because a Commodity Spot CFD transaction is a negotiated transaction between you and us, it is possible that you may sustain losses due to our credit status.

Although your margin balance amount will be kept separately from our assets, the repayment of such margin balance shall not be covered by any official investor protection system in Japan. Therefore it is possible that you may sustain losses in the event of deterioration in our credit status or our transaction banks etc.

(iv) Spread increase on Commodity Spot CFD transactions before and after Publication of Indices / Weekends or Beginning of the Week
Acts of God, war, terrorism or the holding of important international conferences and events may have a major impact on the Commodity markets. In addition, publication of economic indicators can cause major market price fluctuations. On weekends and in the beginning of the week, Commodity markets may be subject to lower liquidity. Please be aware that there are spread increases on these markets. Following a spread increase, the Available Margin Balance may decrease and Forced Settlement may be exercised.

On Commodity spot markets, opening prices may start at a level that differs greatly from the closing at the end of the previous week. In such cases, even if a stop order has been made, it may be executed at a level which is greatly different from the order level.
At the time of publication of important economic indicators etc., and at the time of markedly rapid fluctuations in market price, there may sometimes be a substantial gap between your specified stop order level and the actual stop price achieved.

(vi) Liquidity Risk
The Commodity spot market sometimes sees drastic market fluctuations.

In such an event, it could become difficult to settle your Commodity spot CFD positions or place orders to open, resulting in your open positions forcibly closed by us.
Commodity spot CFD Transactions could be suspended due to regulatory restrictions of certain countries, which can result in the malfunction of Commodity spot CFD transactions leading to a practical inability to trade certain currencies.
Please note that trading may be difficult to execute when there occurs an event such as war, act of God, dispute or change of exchange policy or regulations of the relevant country.

(vii) Risk Associated with Online Trading
Since Commodity spot CFD transactions are electronic transactions using the internet, they carry the risks that accompany electronic transactions.

In the event of malfunction or breakdown in the telecommunication lines or system devices that belong to you or third parties, there may be limitations on Commodity spot CFD trading.
In the event of malfunctioning or breakdown in our telecommunication lines or system devices, your opportunities for gain may be lost.
In Internet trading your mistakes inputting trading orders may result in executions at a non desired level.
In addition, if your account number, password, etc. for the Commodity spot CFD trading are disclosed to a third party due to theft or eavesdropping, etc., unexpected losses may be suffered.

14.7 Commodity Futures CFDs
Trading Commodity Futures CFDs is a high-risk, high-return form of trading, accordingly it is not an investment that suits everyone. Before you commence trading, please consider first whether or not Stock Index Futures CFD trading is an investment means that suits your financial resources, trading experiences and investment purposes etc.

(i) Price Fluctuation Risk
Commodity futures prices that form part of your Commodity Futures CFD Trading fluctuate due to political and economic factors worldwide and other various factors.

Because Commodity Futures CFD Trading is conducted using a leverage effect, for which the gross amount of transaction shall be much greater than the amount of Initial Margin, fluctuations on Commodity Futures prices may provide significant gains, but significant losses may also be incurred over a short period.
In the event that your amount of Equity is less than the level prescribed by us, we shall, without notice to you, make Forced Settlement by cancelling your unexecuted orders or closing your open positions on your account.
In the event that a Commodity Futures market moves materially against you, you may suffer a loss greater than your margin requirement as a result of “Forced Settlement.” In such case, you must pay this additional loss by 3pm on the next banking business day.
When the currency involving your Commodity Futures transaction is not the base currency of your account(Yen or Dollar), you are exposed to foreign exchange risk as the unrealised profit/loss from the transaction will be affected by the fluctuations of foreign exchange rates. This can result in a reduction of your Equity, which can go below the minimum margin level required by us and result in Forced Settlement.

(ii) Interest-Rate Risk
Commodity Futures prices may fluctuate due to interest-rate fluctuations.

(iii) Credit Risk
Because Commodity Futures CFD Trading is a negotiated transaction between you and us, it is possible that you may sustain losses due to our credit status.

Although your deposited margin will be kept separately from our assets, the repayment of such margin shall not be covered under any public investor protection system in Japan. Therefore it is possible that you may sustain losses in the event that our credit status or that of our transaction banks etc deteriorate.

Commodity Futures CFD Trading does not operate for 24 hours a day and as such there are non-trading hours.
Open prices could differ greatly from the close prices of the previous day. In such cases, even if you have placed a stop order, the actually executed stop level may deviate greatly from the order level.
At the time of publication of important economic indicators etc., and when the market price fluctuates sharply, there may sometimes be a substantial gap between the stop order price and the executed price.

(v) Liquidity Risk
Commodity Futures CFD Trading does not operate for 24 hours a day, as such there are non-trading hours which could sometimes see drastic market fluctuations.

During non-trading hours, you cannot open new positions nor close existing positions.
In the event that Commodity Futures CFD Trading is suspended due to the market reaching the trading limit, it could hinder conducting your trading.
When trading Commodity Futures CFDs, the market spread (spread between the Bid and Ask prices) widens during non-trading hours of the corresponding Futures market, which underpins the Stock Index Futures prices. This can trigger your Equity to be reduced, resulting in your positions being automatically closed out.
When trading Commodity Futures CFDs, there may be a limit on the contract size. In those events and when we find that your order sizes are large, we reserve the right to cancel any such orders at our sole discretion, resulting in your open positions not being closed out as you intended.
Commodity Futures CFD Trading could be suspended due to regulatory restrictions of certain countries and exchanges or system failure, leading to a widening of the market spread (spread between the Bid and Ask prices) and/or a practical inability to trade Commodity Futures.
Please note that trading may be difficult to execute or the market spread (spread between the Bid and Ask prices) widens when an event occurs, such as war, act of God, dispute or change of exchange policy or regulations of the relevant country.

(vi) Risk Associated with Online Trading
Since Commodity Futures CFD Trading is an electronic transaction using the internet, it carries the risks that accompany electronic transactions.

In the event of malfunction or breakdown in the telecommunication lines or system devices that belong to you or third parties, there may be limitations on Commodity Futures CFD Trading.
In the event of malfunctioning or breakdown in our telecommunication lines or system devices, your opportunities for gain may be lost.
In Internet trading, your mistakes of inputting trading orders may result in executions at a non desired level.
In addition, if your account number, password, etc. for Commodity Futures CFD Trading account are disclosed to a third party due to theft or eavesdropping, etc., unexpected losses may be suffered.

14.8 Option CFDs
Trading Standard Option CFDs, Limited-Risk Option CFDs, and Binary Options is a high-risk, high-return form of trading, accordingly it is not an investment that suits everyone. Before you commence trading, please consider first whether or not Binary Options trading is an investment means that suits your financial resources, trading experiences and investment purposes etc.

(i) Price Fluctuation Risk
Options CFD prices fluctuate in accordance with the price fluctuation of underlying instruments. The price of underlying instruments fluctuates due to political and economic factors worldwide and other various factors.

A selling transaction of call/put option of Standard Option CFD trading may result in the loss of an amount greater than the full amount of invested funds within a short period due to price fluctuation. If a buying transaction of call/put option of Standard Option CFD, or any transactions of Limited-Risk Option CFDs or Binary Option are in a currency other than your base currency, it could result in the loss of a greater amount due to currency fluctuation.
Particularly in the case of Binary Options, fluctuations in the price of the option may rise significantly when the price of the underlying instruments is close to the execution price of the Binary Option near market closing.
In the event that your amount of Equity is less than the level prescribed by us, we shall, without notice to you, make Forced Settlement by cancelling your unexecuted orders or closing open positions on your account forcibly.
When the currency of your Option CFD transaction is not the base currency of your account (e.g. Yen or Dollar), you are exposed to foreign exchange risk as the unrealised profit/loss from the transaction will be affected by the fluctuations of foreign exchange rates. This can result in a reduction of your Equity, which can go below the minimum margin level required by us and result in Forced Settlement.

(ii) Credit Risk
Because an Option CFD is a negotiated transaction between you and us, it is possible that you may sustain losses due to our credit status.

Although your deposited margin will be kept separately from our assets, the repayment of such margin shall not be covered under any public investor protection system in Japan. Therefore it is possible that you may sustain losses in the event that our credit status or that of our transaction banks etc deteriorates.

(iii) Liquidity Risk

Option CFD orders can be submitted only at the level of the price quoted by us at the time of your order.
Please note that trading may be difficult to execute and the market spread (spread between the Bid and Ask prices) may widen when an event occurs, such as war, act of God, dispute or change of exchange policy or regulations of the relevant country.

(iv) Risk Associated with Online Trading
Since Option CFD Trading is an electronic transaction using the internet, it carries the risks that accompany electronic transactions.

In the event of malfunction or breakdown in the telecommunication lines or system devices that belong to you or third parties, there may be limitations on Option CFD Trading.
In the event of malfunctioning or breakdown in our telecommunication lines or system devices, your opportunities for gain may be lost.
In Internet trading, your mistakes of inputting trading orders may result in executions at a non desired level.
In addition, if your account number, password, etc. for Option CFD Trading account are disclosed to a third party due to theft or eavesdropping, etc., unexpected losses may be suffered.

(v) Other Risks
Due to market conditions and under other circumstances, we reserve the right to modify the Standard Margin rate at our discretion. You acknowledge that such change can result in the fluctuation of your Margin amount and this causes your loss to be realised by Forced Settlement or any of your unexecuted orders to be forcibly cancelled.