Options carry amplified risk
Options are leveraged instruments. Small movements in the underlying can cause large percentage changes in an option's value, including a total loss of the premium paid.
Time decay
Options lose value as they approach expiry, all else being equal. An option can expire worthless.
Volatility
Changes in market volatility can significantly affect options prices in ways that are difficult to predict.
Assignment and obligations
Sellers/writers of options may face obligations, including potentially unlimited or substantial losses, and may be assigned at any time before expiry.
Leverage and margin
Trading on margin increases both potential gains and potential losses and can result in losses greater than your deposit.
No suitability judgment
We do not assess whether trading is suitable for you. Only you (with a qualified professional) can determine that.
Capital you can afford to lose
Never trade with money you need for essential expenses, debts, or emergencies.
This statement does not disclose all risks. Trading in securities markets carries risks that you must understand fully before participating.