APPL International Inc.: Full Service Brokerage Firm with Online Futures, Forex & Commodities Trading

Risk Disclosure

The risk of trading futures and options can be substantial; therefore trading in futures, forex and/or options is not suitable for all investors. You should carefully consider whether trading is appropriate for you in light of your experience, objectives, financial resources and other relevant circumstances. Please read the following information carefully:

The "Leverage" provided in trading futures or forex

Transactions in futures and/or forex carry a high degree of risk. The amount of Initial margin is small relative to the value of the futures and/or forex contract so that transactions are 'leveraged' or 'geared'. 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 initial margin funds and any additional funds deposited with the firm to maintain your position. If the market moves against your position or margin levels are increased, you may be called upon to pay substantial additional funds on short notice to maintain your position. If you fail to comply with a request for additional funds within the time prescribed, your position may be liquidated at a loss and you will be liable for any resulting deficit.

Additional risks with respect to forex trading

Unlike futures contracts, foreign exchange spot and forward contracts are not traded on exchanges. As a result, you are not afforded the regulatory protection of an exchange and no exchange or clearing house guarantees the contracts traded in a case that a counterparty or principal fails to perform. Banks and dealers act as principals in the foreign exchange markets and may limit positions available to your account. These banks and dealers are not required to continue to make markets in the markets they trade and these markets can experience illiquidity. In addition, there is no limitation on daily price movements and speculative position limits are not applicable to these markets. Due to the above factors, the trading of foreign exchange spot and forward contracts may involve greater risks than the trading of futures on exchanges. Although you may not be charged a brokerage commission, the dealer is compensated by revenues from its activities, including proceeds from buying, selling, converting as well as holding currencies and interest on deposited funds and rollover fees. For example notwithstanding the lack of commission or transaction fees the dealer, when it provides a market in a particular currency does so by stating a bid/ask spread which may represent a premium on the ask side and a discount on the bid side to a prevailing or last trade price in the foreign exchange market. (The potential client should also consider that they incur fees and charges initiate by third parties, such as bank fees or charges on unprocessed checks or receiving or sending bank fees or charges on currency deliveries.)

Variable degree of risk in trading options

Transactions in options carry a high degree of risk. Purchasers and sellers of options should familiarize themselves with the type of option (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 must increase for your position to become profitable, taking into account the premium and all transaction costs. The purchaser of options may offset 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 future, the purchaser will acquire a futures and/or forex position with associated liabilities for margin (see the section on Futures above). If the purchased options expire worthless, you will suffer a total loss of your investment which will consist of the option premium plus transaction costs. If you are contemplating purchasing deep-out-of-the-money options, you should be aware that the chance of such options becoming profitable ordinarily is remote. Selling ("writing" or "granting") an option generally entails considerably greater risk then purchasing options. Although the premium received by the seller is fixed, the seller may sustain a loss well in excess of that amount. The seller will be liable for additional margin to maintain the position if the market moves unfavorably. 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 future, the seller will acquire a position in a future with associated liabilities for margin (see the section on Futures above). If the option is "covered" by the seller holding a corresponding position in the underlying interest or a future or another option, the risk may be reduced. If the option is not covered, the risk of loss can be unlimited.

Suspension or restriction of trading and pricing relationships

Market conditions (e.g., illiquidity) and/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 future, and the underlying interest and the option may not exist. This can occur when, for example, the futures and/or forex 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

Deposited cash and property

You should familiarize yourself with the protections accorded money or other property you deposit for domestic and foreign transactions, particularly in the event of a firm 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 has 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.

Trading facilities

Most open-outcry and electronic trading facilities are supported by computer-based component systems for the order-routing, execution, matching, registration or clearing of trades. As with all facilities and systems, they are vulnerable to temporary disruption or failure. Your ability to recover certain losses may be subject to limits on liability imposed by the system provider, the market, the clearing house and/or member firms. Such limits may vary: you should ask the firm with which you deal for details in this respect.

Electronic trading

There are risks associated with utilizing an Internet-based trading system including, but not limited to, the failure of hardware, software, and Internet connection. APPL International is not responsible for communication failures or delays when trading via the Internet. The result of any system failure may be that your order is either not executed according to your instructions or is not executed at all.

Currency risks

The profit or loss in transactions in foreign currency-denominated contracts (whether they are traded in your own or another jurisdiction) will be affected by fluctuations in currency rates where there is a need to convert from the currency denomination of the contract to another currency.

Possible failure of counterparties/ FCM's

Please note that there is a possibility of failure of counterparty/FCM. You must review the customer account agreement carefully prior to establishing an account.

Accuracy of Information

All news, research, analyses, opinions, prices, or other information contained on this website are provided as general market commentary and do not constitute investment advice. APPL International Inc. is not liable for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. APPL International has taken reasonable measures to ensure the accuracy of the information on the website. However, APPL International Inc. does not guarantee its accuracy and is not liable for any loss or damage which may arise directly or indirectly from the content. The content on this website is subject to change at any time without notice.

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