Laabhum - Risk Disclosure as Part of the User Agreement
Risk Disclosure as Part of the User Agreement
This information is provided in compliance with regulatory requirements and aims to describe the general nature and risks of options trading. Options trading involves significant risks and is not suitable for all investors. It is essential to understand these risks and how they relate to your personal circumstances before engaging in options trading. If in doubt, professional advice is recommended.
It's crucial to fully understand the risks involved before entering into a trading relationship with Laabhum. Ensure you have sufficient financial resources to bear such risks and monitor your positions closely.
Past performance is not indicative of future results. The value of financial instruments can fluctuate, leading to potential loss of your initial investment. Consider your individual circumstances, investment objectives, experience, and financial position before investing in financial instruments.
Adapting the provided content for Laabhum's context with a focus on options trading:
Information on the Laabhum platform is intended to aid investors and traders in their decision-making but should not be taken as investment advice or a solicitation for investment strategies.
Users are responsible for their investment decisions and for verifying the information they use to make these decisions. Investments should align with personal needs and risk tolerance. Performance data on Laabhum, including strategies and ideas, is subject to market risk and past performance doesn’t guarantee future returns. This data, including charts and numbers, is provided for informational purposes only.
System performance, market conditions, and various other factors can affect trade execution and results. Trading in derivatives carries high risk and can lead to significant financial loss.
Magnified Losses in Options Trading
Options trading on margin can significantly magnify both profits and losses. It's crucial to use Laabhum's risk management tools to minimize large losses. Remember, you cannot lose more than your account balance.
Options Trading Suitability
Options trading is not suited for long-term investment due to associated costs and may not be ideal for all investors
Risk Management in Trading
  • Ensure sufficient margin to keep transactions open.
  • Be aware of the leverage effects in options trading.
  • Monitor and meet the maintenance margin requirements to avoid the closure of positions.
Operational Risks
Risks related to disruptions in Laabhum's operations or customer's equipment. Laabhum is not liable for operational disruptions except in cases of fraud or negligence. Users should be aware of these potential risks associated with electronic trading.
Customers face certain operational risks, for which Laabhum is not liable:
  • Interruptions due to power cuts on the customer's or provider's side.
  • Damage to communication channels linking the customer, provider, and Laabhum's servers.
  • Low-quality or disrupted communication affecting trading.
  • Incorrect or outdated settings on the customer’s trading terminal.
  • Delays in updating the trading terminal.
  • Risk of miscommunication or non-receipt of messages from Laabhum.
  • Risks associated with immediate execution of text-to trade market orders.
  • Malfunctions or inoperability of the Laabhum trading platform or customer terminal.
Customers using Laabhum may face financial losses due to the operational risks mentioned earlier. Laabhum is not responsible or liable for losses stemming from these risks. It is the customer’s responsibility to bear any financial losses incurred as a result of these operational challenges
Market Fluctuations
Understand the impact of market fluctuations on trading. 'Slippage' refers to the difference between the expected execution price of a trade and the actual execution price. This often happens during high volatility, like during major news events. When market orders are placed or large orders are executed, and there's insufficient interest at the target price, slippage can occur, affecting the trade's expected price.
Under Abnormal Market Conditions, customers should be aware that the execution time of orders might be longer than usual. In some instances, it might be challenging or even impossible to execute orders at the expected prices, or they might not be executed at all.
Need for Active Monitoring
Due to the effects of leverage, which can rapidly influence profits or losses, it's crucial for Laabhum users to closely monitor their positions. The responsibility of tracking trades lies with the trader. Market volatility can lead to quick price changes, making no transaction completely risk-free. Regular monitoring of your transactions is strongly advised to manage these risks effectively.
Communication Between the Customer and Laabhum:
  • Customers should be aware of the risk of financial losses due to delayed or non-receipt of communications from Laabhum
  • It is acknowledged that information transmitted via unencrypted email is not secure against unauthorized access.
  • Laabhum is not liable for unauthorized access to information, including electronic addresses and personal data, during transmission between Laabhum and the customer or over the internet and other network communication facilities.
Non-Advice and Recommendations for Laabhum:
Laabhum does not provide investment advice or recommendations when customers place orders. The services offered do not include investment advice in options trading or underlying markets. Customers are responsible for their own decisions and risk assessments in transactions.
Laabhum does not offer legal, tax, or other advice related to transactions. Customers should seek independent advice for potential tax liabilities. It's important to note that tax laws can change over time. Laabhum assumes no responsibility for advising on such matters
Newsletters from Laabhum:
  • Laabhum may occasionally provide customers with information, news, and market commentary via its website, trading platform, or newsletters. This is not a guaranteed service.
  • Laabhum is not responsible for the accuracy, completeness, or reliability of this information, nor for the tax or legal implications of any transaction based on it.
  • Laabhum is not responsible for the accuracy, completeness, or reliability of this information, nor for the tax or legal implications of any transaction based on it.
  • Customers should not share this information with anyone restricted from receiving it.
  • Laabhum may have used this information for its own purposes before sharing it with customers and does not guarantee simultaneous receipt among all customers
Please be aware that market commentary, news, or other information provided by Laabhum is subject to change and may be withdrawn at any time without prior notice.
Risk Acknowledgement: No Profit Guarantees in Trading
Laabhum makes no promises of profit or assurances against losses in trading. Customers have not received any such guarantees from Laabhum or its staff. It is essential for traders to recognize the risks involved in trading and to ensure they have the financial resilience to sustain any losses that may occur