Risk Warning & Disclaimer
Important information about trading risks you must understand
Last Updated: November 20251. General Risk Warning
Trading in financial markets involves substantial risk of loss and is not suitable for every investor. The valuation of financial instruments such as forex, CFDs, commodities, indices, and cryptocurrencies may fluctuate, and as a result, you may lose more than your original investment.
Before deciding to trade, you should:
- Carefully consider your investment objectives, level of experience, and risk appetite
- Seek independent financial advice if necessary
- Only trade with funds you can afford to lose
- Understand that past performance is not indicative of future results
- Be aware that trading on margin can result in losses exceeding your initial deposit
You Could Lose Everything
It is possible to lose all of your initial capital. Do not invest money you cannot afford to lose. If you are in any doubt, please seek advice from an independent financial advisor.
2. Leverage and Margin Risks
Leverage allows you to control large positions with a relatively small amount of capital. While this can magnify profits, it equally magnifies losses.
- Margin Calls: If your account equity falls below the required margin, your broker may close your positions automatically, potentially at a loss.
- Negative Balance: In extreme market conditions, you may lose more than your deposited funds, resulting in a negative balance (though many brokers offer negative balance protection).
- Overnight Financing: Holding leveraged positions overnight incurs financing charges (swaps) that can erode profits over time.
- Slippage: During volatile markets, your orders may be executed at prices different from those requested.
Leverage Example
With 100:1 leverage, a $1,000 deposit controls $100,000 in the market. A 1% move against your position results in a $1,000 loss – 100% of your capital. Higher leverage (up to 500:1) amplifies this risk proportionally.
3. Market Risks
Financial markets are subject to various risks that can cause rapid and substantial price movements:
- Volatility Risk: Prices can change rapidly and unpredictably, especially during news events, economic releases, or geopolitical events.
- Liquidity Risk: In certain market conditions, it may be difficult to execute trades at desired prices.
- Gap Risk: Prices can “gap” significantly between trading sessions, potentially triggering stop-losses at unfavorable prices.
- Counterparty Risk: The broker or financial institution you trade with may face financial difficulties.
- Regulatory Risk: Changes in regulations can affect trading conditions, available instruments, or leverage limits.
- Technical Risk: System failures, connectivity issues, or platform errors can prevent you from managing your positions.
4. CFD Specific Risks
Contracts for Difference (CFDs) are complex instruments that come with specific risks:
- No Ownership: When trading CFDs, you do not own the underlying asset – you are speculating on price movements.
- High Retail Loss Rate: According to regulatory disclosures, between 74% and 89% of retail investor accounts lose money when trading CFDs.
- Costs: Spreads, commissions, overnight financing, and other fees can significantly impact profitability.
- Stop-Loss Limitations: Stop-loss orders are not guaranteed to execute at your specified price during high volatility.
Regulatory Warning
CFD trading is not available in all jurisdictions. Some regulators, including the US CFTC, prohibit or restrict CFD trading for retail clients. Ensure CFD trading is legal in your country before opening an account.
5. Cryptocurrency Risks
Cryptocurrency trading carries additional unique risks:
- Extreme Volatility: Cryptocurrencies can experience price swings of 10-20% or more in a single day.
- Regulatory Uncertainty: The regulatory landscape for cryptocurrencies varies by country and is constantly evolving.
- 24/7 Markets: Cryptocurrency markets never close, meaning prices can move significantly at any time.
- Security Risks: Exchanges and wallets can be hacked, potentially resulting in loss of funds.
- No Intrinsic Value: Many cryptocurrencies have no underlying assets or cash flows to support their valuations.
- Market Manipulation: Cryptocurrency markets may be subject to manipulation due to lower liquidity and less regulation.
Cryptocurrency Warning
Cryptocurrencies are highly speculative and may be banned or restricted in certain jurisdictions. Regulatory changes can occur without warning and may significantly impact the value or tradability of cryptocurrencies.
6. Promotional Bonus Disclaimer
COT-Reports.com promotes trading bonuses and promotional offers from our partner brokers. You must understand:
- Bonus Terms Apply: All bonuses, including the “up to 100% first deposit bonus,” are subject to specific terms and conditions set by the broker.
- Withdrawal Restrictions: Bonus funds typically cannot be withdrawn until certain trading volume requirements are met.
- Regional Availability: Promotional bonuses may not be available in all countries or regions due to local regulations.
- Changes Without Notice: Bonus terms and availability can change at any time without prior notice.
- Not a Guarantee: Receiving a bonus does not guarantee trading profits or protect against losses.
Bonus Warning
A deposit bonus does not reduce your trading risk. You can still lose 100% of your deposited capital regardless of any bonus received. Bonus amounts may be forfeited if terms are not met. Always read the full bonus terms and conditions before participating.
7. Broker Partner Disclaimer
COT-Reports.com operates as an Introducing Broker (IB) partner with Ultima Markets and potentially other regulated brokers. This means:
- Compensation: We receive compensation when you register and trade through our referral links. This creates a potential conflict of interest.
- Independence: Despite our partnership, our market analysis and COT data interpretation remain independent and objective.
- No Control: We have no control over broker operations, trading conditions, spreads, execution, or your trading results.
- Separate Entities: COT-Reports.com and our partner brokers are separate legal entities. We are not responsible for the actions or failures of our partner brokers.
- Due Diligence: You should independently verify the broker’s regulatory status, reputation, and suitability for your needs.
Broker Regulatory Information
Our partner broker Ultima Markets is regulated by multiple authorities. However, regulation does not guarantee the safety of your funds or profitability. Always verify current regulatory status directly with the relevant authorities:
- FCA (UK Financial Conduct Authority)
- CySEC (Cyprus Securities and Exchange Commission)
- ASIC (Australian Securities and Investments Commission)
8. COT Data Disclaimer
COT-Reports.com provides analysis and visualization of Commitment of Traders (COT) data published by the U.S. Commodity Futures Trading Commission (CFTC). Important disclaimers:
- Historical Data: COT data is released weekly with a 3-day delay. It reflects past positions and may not indicate current market sentiment.
- Interpretation Varies: Analysis of COT data is subjective and different analysts may reach different conclusions from the same data.
- No Predictive Power: COT data does not predict future price movements. Markets can move contrary to positioning data.
- Data Accuracy: While we strive for accuracy, we do not guarantee the correctness of data displayed on our platform.
- Not Trading Signals: Our analysis should not be interpreted as buy or sell recommendations.
AI Market Analysis Disclaimer
The “AI Market Analysis” feature on COT-Reports.com uses predefined algorithmic formulas and rule-based logic to interpret COT data and generate market sentiment assessments. This system does not utilize real-time generative artificial intelligence, machine learning models, or neural networks. The analysis is based on fixed mathematical calculations and predetermined scenarios derived from historical patterns in COT positioning data. The term “AI” is used to describe automated, algorithm-driven analysis, not adaptive or learning-based artificial intelligence. Results are for informational purposes only and should not be considered as trading recommendations.
9. Not Financial Advice
Nothing on COT-Reports.com constitutes financial, investment, legal, or tax advice. All content is provided for educational and informational purposes only.
- We are not registered investment advisors, financial planners, or licensed professionals.
- Any trading ideas, analysis, or opinions expressed are our own and do not constitute personalized investment advice.
- You should consult with qualified professionals before making any financial decisions.
- Past performance discussed or illustrated on our website is not indicative of future results.
Seek Professional Advice
If you are uncertain whether trading is appropriate for your circumstances, please seek independent financial advice from a qualified professional who understands your financial situation and objectives.
10. Limitation of Liability
To the maximum extent permitted by applicable law:
- COT-Reports.com, its owners, employees, and affiliates shall not be liable for any direct, indirect, incidental, special, consequential, or punitive damages arising from your use of our website or services.
- We are not responsible for any trading losses, lost profits, or financial damages you may incur.
- We do not guarantee the accuracy, completeness, or timeliness of any information provided.
- You agree to indemnify and hold harmless COT-Reports.com from any claims arising from your trading activities or use of our services.
By using COT-Reports.com, you acknowledge that you have read, understood, and accept all the risks described in this disclaimer. You trade entirely at your own risk.
11. About COT-Reports.com
The information provided on this website is for general informational purposes only. It is not intended as financial or investment advice and should not be relied upon as such. Before making any financial or investment decisions, please consult a professional advisor who can provide tailored advice based on your specific needs and circumstances.
COT-Reports.com is a platform that provides tools for analyzing Commitment of Traders (COT) data, market trends, and positioning insights, based on the latest and historical COT reports. We do not provide financial, investment, or trading advice, nor do we make recommendations to buy or sell any securities, derivatives, or financial instruments.
All data and information provided through COT-Reports.com are for informational and educational purposes only and may not be accurate, complete, or up to date. Trading and investing involve significant risk of loss and may not be suitable for all investors. Past performance does not guarantee future results. Users are solely responsible for their own investment decisions.
Always use a demo account to test the above COT data information.
Questions About Risk?
If you have questions about trading risks, please contact us
contact@cot-reports.com
