Risk Disclosure Statement

This Risk Disclosure Statement ("Statement") is provided to you in compliance with applicable regulations and to ensure you understand the nature and risks of trading Contracts for Difference (CFDs) with Milton Markets.

CFDs are complex financial instruments that are traded on margin. Trading CFDs carries a high level of risk since leverage can work both to your advantage and disadvantage. As a result, CFDs may not be suitable for all investors because you may lose all your invested capital.

You should not risk more than you are prepared to lose. Before deciding to trade, you need to ensure that you understand the risks involved and take into account your investment objectives and level of experience.

CFDs are derivative financial instruments that derive their value from the prices of underlying assets. The underlying asset could be a Currency Pair (Forex), Equity Index, Commodity, Precious Metal, Stock, or Cryptocurrency. It is important to note that:

• You do not own or have any rights to the underlying assets
• CFDs are not traded on regulated exchanges
• CFD prices are determined by the market maker (Milton Markets)
• There is no physical delivery of the underlying asset
• Profits or losses are realized when positions are closed

Leverage Amplification: CFDs are traded on margin, meaning you only deposit a small percentage of the total trade value. While this can magnify profits, it equally magnifies losses. A small market movement can have a proportionately larger impact on your deposited funds.

Margin Calls and Stop-Outs:

• Margin Call: Warning when equity approaches maintenance margin
• Stop-Out: Automatic position closure when margin level falls below minimum
• You may lose more than your initial deposit despite stop-out protection
• Market gaps can result in closure at worse prices than stop-out level

Financial markets can be highly unpredictable and subject to various factors:

• Economic Events: GDP data, employment figures, inflation reports
• Political Events: Elections, policy changes, geopolitical tensions
• Natural Disasters: Earthquakes, hurricanes, pandemics
• Market Sentiment: Investor psychology and herd behavior
• Central Bank Actions: Interest rate decisions, quantitative easing
• Corporate Events: Earnings reports, mergers, bankruptcies

These factors can cause rapid and significant price movements that may result in substantial losses.

Liquidity refers to the ability to buy or sell an asset without causing significant price movement. Liquidity risks include:

• Inability to close positions at desired prices during low liquidity
• Wider spreads during volatile or illiquid market conditions
• Market gaps preventing stop-loss orders from executing at set prices
• Limited liquidity in exotic currency pairs or smaller markets
• Reduced liquidity outside regular trading hours

When trading CFDs with Milton Markets, you are exposed to the financial and business risks of your counterparty. This includes:

• Risk of Milton Markets defaulting on its obligations
• Segregation of client funds does not eliminate counterparty risk
• Compensation schemes may not cover all losses
• Insolvency proceedings may delay or prevent fund recovery

Trading through an electronic platform carries inherent risks related to system failures and technical issues. You acknowledge and accept risks related to:

• Hardware or software failures on your device
• Internet connectivity problems
• Power outages or system maintenance
• Platform bugs or glitches
• Data feed interruptions or delays
• Order execution delays or failures

Poor internet connection can result in:

• Delays in order transmission and execution
• Outdated price quotes
• Inability to close positions timely
• Missed trading opportunities
• Failure to receive important notifications

We are not responsible for any losses arising from connectivity issues on your end.

System failures may result in:

• Loss of orders or order priority
• Inability to access your account
• Delayed or incorrect order execution
• Erroneous account information
• Inability to implement risk management strategies

Online trading exposes you to cybersecurity risks including:

• Unauthorized account access through phishing or hacking
• Identity theft and fraud
• Malware or viruses affecting trading devices
• Man-in-the-middle attacks
• Data breaches exposing personal information

Always use strong passwords, enable two-factor authentication, and keep your devices secure.

Changes in laws and regulations can significantly impact trading conditions:

• New regulations may restrict certain trading activities
• Leverage limits may be imposed or changed
• Tax laws may affect your trading profits
• Products may become unavailable in your jurisdiction
• Regulatory actions against the broker may affect your funds
• Cross-border trading may involve multiple regulatory frameworks

Trading CFDs may have tax consequences:

• Profits may be subject to capital gains tax
• Losses may or may not be tax deductible
• Tax treatment varies by jurisdiction
• Tax laws can change without notice
• You are responsible for your tax obligations

Seek independent tax advice regarding your personal circumstances.

If you trade products denominated in a currency other than your base account currency, you are exposed to currency exchange risk:

• Exchange rate fluctuations can affect profits and losses
• Currency conversions incur additional costs
• Adverse exchange movements can turn profits into losses
• Margin requirements may increase due to exchange rate changes

Markets can experience periods of extreme volatility characterized by:

• Rapid and unpredictable price movements
• Increased spreads and trading costs
• Difficulty in executing orders at expected prices
• Triggering of stop-losses at unfavorable levels
• Temporary suspension of trading in certain instruments

Market Gaps: Prices can "gap" from one level to another without trading at intermediate prices. This commonly occurs:

• At market open after weekends or holidays
• Following major news announcements
• During periods of market stress
• In illiquid market conditions

Slippage: The difference between expected and actual execution price:

• Stop-loss orders may execute at worse prices than set
• Market orders may fill at unexpected prices
• Positive slippage is possible but less common
• Slippage increases during volatile conditions

Trading CFDs involves various costs that impact profitability:

These costs can significantly erode profits or increase losses, especially for frequent traders or those holding positions long-term.

As a market maker, Milton Markets may have conflicts of interest:

• We are the counterparty to your trades
• We profit when you lose and vice versa
• We set the prices at which you trade
• We may hedge our exposure with other providers
• We earn from spreads and commissions regardless of your results

We have policies and procedures to manage conflicts of interest fairly, but they cannot be eliminated entirely.

You acknowledge that:

• You make trading decisions independently
• You are solely responsible for your trading outcomes
• Market analysis and research are not personalized recommendations
• Educational content is general in nature
• You should seek independent financial advice if needed

Past performance is not indicative of future results.

Any historical returns, expected returns, or probability projections:

• Do not guarantee future performance
• May not reflect actual trading conditions
• Could be based on simulated or hypothetical results
• Do not account for all market factors
• Should not be relied upon for investment decisions

CFD trading may not be suitable for you if:

• You cannot afford to lose your invested capital
• You do not understand how CFDs work
• You have limited trading experience
• You are risk-averse or seeking guaranteed returns
• You are using borrowed money to trade
• You are saving for retirement or essential expenses
• You have gambling addiction or impulse control issues

Only trade with money you can afford to lose. Never trade with funds needed for essential living expenses, retirement, or emergency savings.

If you do not understand the risks involved in trading CFDs, you should seek advice and refrain from trading until you have sufficient knowledge and experience.

If you have questions about the risks involved in CFD trading or need clarification on any aspect of this Risk Disclosure Statement, please contact us: