Futures and Options Trading Risks and Disclosures

Futures and options trading involve significant risks, including market volatility, leverage, and uncertainty. It's essential to understand the risks before entering into these markets.

• Market fluctuations can result in substantial losses if not managed properly.
• Leverage can amplify both gains and losses, making it crucial to manage risk effectively.
• The use of margin or leverage can lead to rapid losses if the market moves against you.

Types of Disclosures in Futures and Options Trading

Futures and options trading involve various types of disclosures, including:

• Clearance certificates: Provide detailed information on the underlying asset or contract.
• Confirmation reports: Document the trade confirmation with the buyer and seller.
• Disclose orders (DO): Identify all trades entered by you, including buys and sells.
• Funding disclosure report (FDR): Inform of the amount borrowed to purchase or sell an underlying asset.