TIGER BROKERS (SINGAPORE) PTE. LTD. (“TBSPL”) – RISK DISCLOSURE STATEMENT
This statement does not disclose all of the risks and other significant aspects of trading in capital market products. In the light of risks, you should undertake such transactions only if you understand the nature of securities, derivatives, and the contracts (and the contractual relationship) which you are entering into and the extent of your exposure to risk. You should carefully consider whether trading in capital market products is appropriate in the light of your experience, objectives, financial resources, and other relevant circumstances. If in any doubt, you should seek professional advice. Different capital market products involve different levels of risk and in considering whether to trade or invest in capital market products, you should be aware of the following points:
i. Terms and Conditions of Trading/ Investing in Capital Market Products
You should read and understand the terms and conditions spelt out in the Customer Agreement, Margin Facility Agreement, Futures Account Agreement, together with all disclosures, terms, conditions, rules, and regulations included on the Website, as the same may be amended, modified, supplemented, or replaced from time to time (collectively the “Terms”), which are referred to and govern the relationship between you and TBSPL.
ii. Joint Account
Each joint account holder is jointly and severally liable for all debts incurred in a joint account. A joint account may be operated by not more than 2 individuals.
iii. Risk associated with Trading/ Investing in Capital Market Products
a. Price Fluctuation
The price and value of any investment in capital market products and the income, if any, from them, can fluctuate and may fall against your interest. An individual security may experience downward price movements and may under some circumstances even become valueless. An inherent risk of trading/ investing in capital market products is that losses may be incurred, rather than profits made, as a result of buying and selling such products.
b. Suspension or Restriction of Trading
Market conditions (e.g. illiquidity) and/or the operation of the rules of certain markets (e.g. the suspension of trading in any security because of price limits or trading halts) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/ offset positions. The placing of contingent orders, such as “stop-loss” or “stop-limit” orders, will not necessarily limit losses to intended amounts, as it may be difficult or impossible to execute such orders without incurring substantial losses under certain market conditions.
c. Securities-Based Derivatives (e.g. structured warrants, single stock options)
These instruments may give you a time-limited or absolute right to acquire or sell one or more types of investments which is normally exercisable against someone other than the issuer of that investment. You should be aware of the liquidity and market risks associated with these instruments. These instruments carry a high degree of risk as they often involve gearing or leverage, so that a relatively small movement in the price of the underlying investment may result in a much larger movement, favourable or unfavourable, in the price of the instrument. The price of these instruments can therefore be volatile. These instruments have a limited life and may expire worthless if the underlying instrument does not perform as expected.
iv. Risk of Margin Trading
The risk of loss in financing a transaction by deposit of collateral may be significant. You may sustain losses in excess of your cash and any other assets deposited as collateral with TBSPL. TBSPL generally will not issue margin calls, and may liquidate positions in your account in order to satisfy margin requirements without prior notice to you and without an opportunity for you to choose the positions to be liquidated or the timing or order of liquidation. You should therefore carefully consider whether such a financing arrangement is suitable in the light of your own financial position and investment objectives.
v. Commission, Fees, Interest and Other Charges
You should obtain a clear explanation of all commissions, fees, interest and charges, including charges for the custody of your investments, and understand that these charges may affect your net profit (if any) or increase your loss. You agree that you will be liable for these charges (as may be amended from time to time).
vi. Assets Received or Held Outside Singapore
Client assets received or held by the licensed person or registered outside Singapore are subject to the applicable laws and regulations of the relevant overseas jurisdiction which may be different from Singapore law. Consequently, such client assets may not enjoy the same protection as that conferred on client assets received or held in Singapore.
vii. Transactions in Other Jurisdictions
Transactions on markets in other jurisdictions, including markets formally linked to the Singapore market, may expose you to additional risks. Such markets may be subjected to rules and regulations that may offer different or diminished investor protection. Before entering into such trades, you should be aware of the rules relevant to the particular transactions, Singapore regulatory authority may be unable to compel the enforcement of the rules of regulatory authorities or markets in other jurisdictions where your transactions have been effected.
viii. Currency Risks
The potential for profit or loss from transactions on foreign markets or in foreign currency-denominated securities (traded locally or in other jurisdictions) will be affected by fluctuations in foreign exchange rates.
ix. Electronic Trading and Order Routing Systems
Trading through an electronic trading or order routing system exposes you to risks associated with system or component failure. In the event of system or component failure, it is possible that, for a certain time period, you may not be able to enter new orders, execute existing orders, modify or cancel orders that were previously entered or view the receipt of confirmations. System or component failure may also result in loss of orders or order priority. Electronic trading system may experience outages or delays as the result of, among other events, power failures, programming failures, accessibility, volatile market conditions or heavy volume of trading which may result in delayed or slowed response time. You should be prepared and maintain alternative trading arrangements for order entry in the event that TBSPL system is unavailable for any reason.
x. Risk of Short Selling
When you short sell a stock, TBSPL must borrow such stock on your behalf to effect delivery of such stock to the purchaser, if the lender subsequently issues a re-call notice for such stock, TBSPL will attempt to re-borrow the stock on your behalf. You understand and agree that if TBSPL is unable to re-borrow such stock, TBSPL, without notice to you, is authorised by you to cover your short position by purchasing such stock on the open market at the then-current market price and you shall be liable for any resulting losses and all associated costs incurred.
xi. Deposited Cash and Property
You should familiarise yourself with the protection accorded to any money or other property which you deposit for domestic and foreign transactions, particularly in a firm’s insolvency or bankruptcy. The extent to which you may recover your money or property may be governed by specific legislation or local rules. In some jurisdictions, property which had been specifically identifiable as your own will be pro-rated in the same manner as cash for purposes of distribution in the event of a shortfall.
xii. Non-Advisory Nature of Relationship
You should note and accept that TBSPL does not provide any investment advisory services on any capital market products. You acknowledge and understand that the dealings between TBSPL and you are not subjected to the Guidelines on Fair Dealing Board and Senior Management Responsibilities for Delivering Fair Dealing Outcomes to Customers issued by MAS. TBSPL will act on an execution-only basis and will not be providing any financial advice to you. While information may be shared with you from representatives and/or agents of TBSPL, it is to be used solely for educational purposes. You agree that you rely on your own judgement in making any investment decision and TBSPL nor its representative is liable for any of such investment decision you made.
xiii. Additional Risk Disclosure Statement for Futures Contracts/ Options Trading
You should undertake transactions in futures/ options only if you understand the nature of the contracts (and contractual relationships) into which you are entering and the extent of your exposure to the risks. Trading in futures/ options may not be suitable for everyone. You should carefully consider whether such trading is appropriate for you in the light of your experience, objectives, financial resources and other relevant circumstances. In considering whether to trade, you should be aware of the following, in addition to the risk factors disclosed above:
a. Effect of ‘Leverage’ or Gearing’
Transactions in futures carry a high degree of risk. A relatively small market movement will have a proportionately larger impact on the funds you have deposited or will have to deposit; this may work against you as well as for you. You may sustain a total loss of the initial margin funds and any additional funds deposited with the firm to maintain your position if the market moves against your position. If you fail to comply with a request for additional funds within the specified time, your position may be liquidated at a loss and you will be liable for any resulting deficit in your account.
b. Risk-Reducing Orders or Strategies
The placing of certain orders (e.g. ‘stop-loss’ orders, where permitted under local law, or ‘stop-limit’ orders) which are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders. At times, it is also difficult or impossible to liquidate a position without incurring substantial losses. Strategies using combinations of positions, such as ‘spread’ and ‘straddle’ positions may be as risky as taking simple ‘long’ or ‘short’ positions.
c. Variable Degree of Risk
Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarise themselves with the type of options (i.e. put or call) which they contemplate trading and the associated risks. You should calculate the extent to which the value of the options would have to increase for your position to become profitable, taking into account the premium paid and all transaction costs. The purchaser of options may offset its position by trading in the market or exercise the options or allow the options to expire. The exercise of an option results either in a cash settlement or in the purchaser acquiring or delivering the underlying interest. If the option is on a futures contract, the purchaser will have to acquire the futures position with the associated liabilities for margin. If the purchased options expire worthless, you will suffer a total loss of your investment which will consist of the option premium paid plus transaction costs. If you are contemplating purchasing deep-out-of-the-money options, you should be aware that, ordinarily, the chance of such options becoming profitable is remote.
Selling (‘writing’ or ‘granting’) an option generally entails considerably greater risk than purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of the amount of premium received. The seller will be liable to deposit additional margin to maintain the position if the market moves unfavourably. The seller will also be exposed to the risk of the purchaser exercising the option and the seller will be obligated to either settle the option in cash or to acquire or deliver the underlying interest. If the option is on a futures contract, the seller will acquire a futures position with the associated liabilities for margin. If the option is ‘covered’ by the seller holding a corresponding position in the underlying futures contract or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited.
Certain exchanges in some jurisdictions permit deferred payment of the option premium, limiting the liability of the purchaser to margin payments not exceeding the amount of the premium. The purchaser is still subject to the risk of losing the premium and transaction costs. When the option is exercised or expires, the purchaser is responsible for any unpaid premium outstanding at that time.
d. Terms and Conditions of Contracts
You should understand the terms and conditions of the specific futures contract or options which you are trading and the associated obligations (e.g. the circumstances under which you may become obligated to make or take delivery of the underlying interest of a futures contract in respect of options, expiration dates and restrictions on the time for exercise). Under certain circumstances, the specifications of outstanding contracts (including the exercise price of an option) may be modified by the exchange or clearing house to reflect changes in the underlying interest.
e. Suspension or Restriction of Trading and Pricing Relationship
Market conditions (e.g. illiquidity) or the operation of the rules of certain markets (e.g. the suspension of trading in any contract or contract month because of price limits or ‘circuit breakers’) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions. If you have sold options, this may increase the risk of loss.
Further, normal pricing relationships between the underlying interest and the futures contract, and the underlying interest and the option may not exist. This can occur when, e.g., the futures contract underlying the option is subject to price limits while the option is not. The absence of an underlying reference price may make it difficult to judge ‘fair’ value.
Note: “Margin” for futures and options means an amount of money, securities, property or other collateral, representing a part of the value of the contract or agreement to be entered into, which is deposited by the buyer or the seller of a futures contract or options to ensure performance of the terms of the futures contract or options.
xiv. Risk disclaimer
a. All investments are risky. The historical data of any security or financial product cannot guarantee its future performance or return. Although diversified investment can help you spread risks, it does not help you to benefit or prevent you from losing money in a depressed market. There will always be potential losses in investing in securities or financial products. You need to consider your own investment objectives and risk tolerance before investing. When you use this product, it means that you have read, understood and accepted all the contents of this disclaimer, and that you have fully understood the possible risks and agreed to assume all the risks involved in using this product. You shall be clear that the use of this product does not completely avoid investment risks, and TBSPL does not take any responsibility for the losses and risks of your investment option interest.
b. TBSPL and its affiliated companies will make every effort to ensure the authenticity, sufficiency, reliability and accuracy of the information provided, but they cannot guarantee its absolute reliability and accuracy. All the information, data and material provided by TBSPL will only be used as reference. You must carefully judge the accuracy of market prices, charts, comments and purchases or other information displayed in this product. TBPSL will not take any responsibility for any loss caused by inaccuracy, omission of any content or your subjective reasons.
c. To the maximum extent permitted by applicable laws, TBSPL shall not be liable for any loss or risk arising from the use or inability to use this product, including but not limited to direct or indirect personal damage, loss of business profits, interruption of trade, loss of business information or any other economic loss.
d. Trading in markets in other jurisdictions（including those with formal links to the local market）may involve additional risks. According to the regulations of these markets, the degree of protection you may have may vary or even decrease. Before proceeding with the transaction, you should first identify all the rules regarding the transaction you will be conducting. The regulatory authority in your own location may not be able to enforce the relevant rules in the jurisdictions or markets of the jurisdiction in which you have executed the transaction. TBSPL is not responsible for any damage caused by the application of any rules.
xv. Exemption of liability for user negligence or breach of contract
a. TBSPL has the right to modify or change this disclaimer at any time, and the modified or changed terms will take effect immediately upon publication. If you continue to use this product after the disclaimer modification or change, you will be deemed to have read, understood and accepted the modified or changed terms. If you claim damages on the grounds of not reading, understanding, or accepting the modified or changed terms, TBSPL will not bear any responsibility.
b. You must confirm that you know the functions of this product and the necessary operations to realize the functions of this product, and voluntarily choose to use TBSPL’s products and related services according to your own needs. For any loss caused by your personal negligence or operational mistakes during your use of TBSPL’s products and related services, TBSPL will not take any responsibility.
c. If you use this product for any illegal purpose or in any illegal way and use TBSPL’s services to engage in any illegal acts or acts causing infringement of the rights and interests of others, resulting in losses to you or third parties, TBSPL will not bear any liability for compensation.
d. The software or program used in this product and all contents on the product, including but not limited to texts, pictures, files, information, data, product structure and product design, shall be owned by TBSPL or other rights holders who own its intellectual property rights according to laws, including but not limited to trademark rights, patents, copyrights, business secrets and proprietary technologies. If you use, modify, reproduce, publicly broadcast, convert, distribute, release, publicly publish, conduct reverse engineering, decompile or reverse compile of this product without the prior written consent of TBSPL or other rights holders, TBSPL will not bear any liability for compensation and has the right to demand that you bear the liability for infringement of intellectual property rights.
e. If the account password, personal information and transaction data are leaked or your identity is counterfeited in the process of using this product, TBSPL will not bear any liability for compensation.
xvi. Objective disclaimer
a. This product has been tested in detail and closely, but it cannot be guaranteed to be completely compatible with all hardware and software systems, and it cannot be guaranteed to be completely error-free. If there are incompatibilities and software errors, you can call TBSPL's customer service (+65 6331 2277) for technical support, but TBSPL will not be liable for any loss incurred by you in anyway.
b. TBSPL will not be responsible for any loss caused by telecommunication system or Internet network failure, computer failure or virus, information damage or loss, computer system problems or any other force majeure reasons (such as war, communication failure, natural disasters, strikes and government actions).
c. The service provided by this product may be interrupted or malfunctioned due to objective factors such as internet data transmission failure, interruption and delay, which causes a danger that this product function cannot be realized. Under such circumstances, if you suffer from losses due to delayed use or inability to use the services provided by this product, TBSPL will not be liable for compensation. You are recommended to take reasonable and effective protective measures when you are using this product.
d. According to the needs of the company's operation, TBSPL will publish and reprint the news and information provided by the cooperative company in this product and the content provider will be indicated when publishing and reprinting. Based on respect for the intellectual property rights of the content provider, TBSPL will not conduct any substantive review over or make modification of the content provided by the content provider and does not guarantee the authenticity of the content. Please make your own judgment. If you think some content involves infringement or misrepresentation, please report your opinion to the provider of the content.
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