01General risk warning
The Instruments offered by BINGMEX Limited (FX pairs, spot precious metals, CFDs on global stock indices) are complex, highly leveraged speculative products. They are not suitable for every investor. Before deciding to trade with us you should carefully consider your investment objectives, level of experience, financial situation and risk appetite, and seek independent advice from an authorised professional if anything is unclear. By opening an Account, you confirm that you have read, understood and accepted the risks set out in this document.
02Leverage & margin
Trading on margin allows you to control a large notional position with a small amount of capital. Even small movements in the underlying market can result in disproportionately large gains or losses on the capital you have committed. A loss may exceed the funds you have deposited and the speed at which losses can occur is often faster than the speed at which margin can be added.
We will close some or all of your open positions if your equity falls below the maintenance margin level. We are not obliged to issue a margin call before doing so. The price at which positions are closed may be substantially worse than the price you anticipated, and in fast-moving markets you may incur losses that are larger than expected.
03Market risk & volatility
Prices of FX, metals and indices are influenced by a wide range of factors including macroeconomic data, central bank policy, geopolitical events, sentiment, liquidity conditions, and the publication of economic data. Markets can move sharply and unpredictably, sometimes in the absence of any obvious news catalyst.
Periods of high volatility may be associated with widening of bid–ask spreads, reduced market depth, increased slippage and reduced liquidity. Stop-loss orders may not be filled at the requested level. Markets may temporarily halt or be suspended.
04Liquidity, slippage & gaps
Liquidity is the depth of the market — the volume that can be transacted at or near the prevailing price. Liquidity varies by Instrument and by time of day. Sessions around major economic releases, regional market opens and closes, weekends and public holidays are typically associated with lower liquidity and wider spreads.
Slippage is the difference between the price at which you intended to execute and the price at which your Order was actually filled. Slippage can be adverse or favourable. Stop-loss and take-profit Orders are filled at the next available price after the trigger level is reached, which may be materially different from the trigger price in fast or thin markets.
Gapping occurs where the market jumps from one price to another without trading at intermediate levels — typically over a weekend or following a major news event. Gapping can result in losses that significantly exceed the capital you have allocated to a trade.
05Foreign exchange specifics
FX trading involves simultaneously buying one currency and selling another. Currency rates are influenced by interest-rate differentials, central bank intervention, balance-of-payments flows, capital controls, political events and risk sentiment. Some currency pairs (typically emerging-market or "exotic" pairs) carry materially higher risk than the major pairs because of lower liquidity and higher sensitivity to political shocks.
Holding an FX position overnight is subject to swap (rollover) credits or debits computed in line with prevailing interbank rates. Swap charges can become significant for positions held over extended periods, particularly for currencies with materially different short-term interest rates.
06Precious metals specifics
Spot precious metals (gold and silver, quoted in USD) are influenced by inflation expectations, real interest rates, USD strength, central bank reserve activity, ETF flows and global risk appetite. Silver in particular is significantly more volatile than gold and may experience large intraday swings.
Metals trading hours are slightly shorter than FX hours, and overnight gaps after a session close are common. Margin and leverage on metals are typically lower than on FX majors.
07Index CFD specifics
Index CFDs (such as US500, NAS100, GER40, UK100, JP225, HK50) give you exposure to the price of an underlying stock-index instrument, without giving you ownership of any constituent shares or any right to dividends. Cash and futures-based CFDs differ in their pricing mechanics, dividend treatment, financing costs and trading hours.
Indices can experience overnight gaps after the underlying cash market closes, particularly around earnings season, central bank meetings and US trading sessions. Liquidity outside the underlying cash session is typically lower and spreads wider.
08CFD product risk
A contract for difference (CFD) is a leveraged derivative contract between you and BINGMEX whose value tracks the price of an underlying market. You should be aware that:
- You do not own the underlying instrument and have no rights of ownership, voting or settlement of physical delivery;
- The price of the CFD is derived from, but may briefly diverge from, the price of the underlying market;
- You may incur financing costs (and, on certain product classes, dividend adjustments) for holding positions overnight;
- The CFD will be closed automatically on the expiry of the underlying contract for futures-based products;
- CFDs are not transferable to another broker.
09Counterparty & custodial risk
Trades you execute with BINGMEX are bilateral contracts between you and us; we are your direct counterparty. You are therefore exposed to BINGMEX as a counterparty in respect of any open position and any unrealised profit or unwithdrawn balance.
Client funds are held in segregated bank accounts that are kept separate from our proprietary funds, in line with the conditions of our FSC licence. However, you remain exposed to the credit risk of the banks at which those segregated accounts are held, and to the systemic and operational risks of the relevant payment infrastructure. In the unlikely event of insolvency of a bank holding segregated client money, recovery of those funds may take time and may not be in full.
10Technology & platform risk
Online trading depends on a complex chain of technology — your local device, your internet connection, intermediate networks, data centres, servers, the MetaTrader 5 platform, our liquidity providers and market venues. A failure at any point in the chain may delay or prevent you from placing, modifying or closing a trade, or from accessing your Account information.
We may suspend access to the platform at any time for scheduled maintenance, emergency repair, security reasons or where we believe there is a market integrity, regulatory or operational reason to do so. We are not responsible for losses caused by failure of your local equipment or internet connection, by force-majeure events, or by failures of third-party infrastructure not under our control.
11Algorithmic & copy-trading risk
MetaTrader 5 supports algorithmic trading via Expert Advisors (EAs) and copy-trading via the MT5 Signals service. These tools execute Orders automatically on your behalf based on rules or signals you have not necessarily authored.
Risks specific to algorithmic and copy-trading include: malfunctioning logic that produces unintended Orders; overfitting of historical performance that fails in live markets; latency between signal and execution; signal-provider disclosure that is incomplete or misleading; and rapid drawdowns that occur faster than you can intervene. You remain solely responsible for any algorithm or signal you choose to deploy on your Account.
12Regulatory & legal risk
Changes in law or regulation, in Mauritius or in your country of residence, may affect the products we are able to offer, the leverage available to you, the margin you are required to post or the activities you may carry out. Such changes may take effect at short notice and may apply to existing as well as new positions.
Authorisation by the FSC of Mauritius does not amount to authorisation by the financial regulator of any other country. Where local law in your jurisdiction requires you to obtain consent or to deal only with a locally-authorised person, you are responsible for ensuring that you may lawfully open and operate an Account with us. Sanctions designations or restrictions may require us to terminate the relationship at short notice.
13Tax considerations
BINGMEX does not provide tax advice. Profits and losses arising from trading on your Account may be taxable, and tax may be withheld at source on certain product classes or in certain jurisdictions. Tax treatment depends on your country of residence and your personal circumstances and may change. You are responsible for understanding your tax obligations and for filing accurate tax returns. We recommend that you consult an independent tax adviser.
14Suitability & advice
BINGMEX provides execution-only services. We do not assess the suitability or appropriateness of the Instruments we make available against your personal investment objectives, knowledge, experience or financial position, except where we are explicitly required to do so by law. Any educational material, market commentary or signal we provide is general information only and does not constitute investment advice or a personal recommendation.
You alone bear responsibility for:
- understanding the products you trade;
- deciding whether a transaction is appropriate to your circumstances;
- managing the size of your positions and the level of risk you take;
- seeking independent professional advice where appropriate.
15Your acknowledgement
By opening or continuing to operate an Account with BINGMEX, you confirm that:
- you have read and understood this Risk Disclosure;
- you accept that trading FX, precious metals and CFDs on a leveraged basis carries a high risk of loss, up to and potentially exceeding your initial deposit;
- you have the financial means to bear those losses and you are not trading with funds you cannot afford to lose;
- you are not relying on any representation by BINGMEX, its officers, employees or affiliates as to the suitability of any Instrument for you, or the likely outcome of any transaction you may undertake;
- this Risk Disclosure forms part of the Client Agreement between you and BINGMEX.