Risk Disclosure Policy

1. Introduction

Seven Broker (in this document, “Seven Broker”, the “Company”, “we”, “us” and “our”) provides access to trading in contracts for difference (“CFDs”) and other leveraged products through the cTrader platform. The Company is incorporated in Saint Lucia under company number [COMPANY REG. No.], with its registered office at [FULL REGISTERED ADDRESS, SAINT LUCIA].

A CFD is a contract between two parties, normally described as buyer and seller. It settles the difference between the price of an underlying asset when the contract is opened and its price when the contract is closed. If that difference is negative for the buyer, the buyer pays it to the seller. CFDs are derivatives: they allow a client to take a position on prices moving up (a long position) or down (a short position) without owning the underlying asset.

This document does not describe every risk of trading CFDs, nor every aspect of the products the Company offers. It is not investment advice and it is not a recommendation to trade any instrument or to use any service. You should not carry out any transaction unless you understand the nature of the product, the risks involved and the extent of your exposure to those risks.

• the value of a position can fall as well as rise, and can fall to zero;
• past performance of an instrument is not a guide to its future performance;
• leverage multiplies both gains and losses on the money you deposit;
• trading these products is not suitable for every investor, and you should only trade with money you can afford to lose in full.

2. Risks associated with CFDs

2.1 Leverage risk

Leverage is the defining feature of a CFD, and the reason a CFD is riskier than buying the underlying asset outright. Because of the margin system, you place a deposit that is small in relation to the size of the position, so a small movement in the price of the underlying asset has a disproportionate effect on your account.

Seven Broker offers leverage of up to 1:100. At that level, a position of $10,000 can be opened with $100 of margin, and a price movement of 1% against the position is enough to consume the entire margin.

2.2 Gapping risk

Markets can move sharply, and CFD prices follow them. Gapping happens when a price jumps from one level to another without trading at the levels in between, typically after news, at a market open, or during a period of low liquidity. A stop loss closes the position when the market reaches the level you set, but it is not a guarantee: in fast markets, on a gap, or when a market is closed, the position may be closed at a materially worse price than the level requested.

2.3 Risk of losing the funds you deposit

To keep a leveraged position open, your account must hold enough funds to cover the margin required. Margin shortfalls can appear within seconds when prices move, and if the account does not hold enough funds, positions may be closed at a time you would not have chosen. Your account equity must remain above the close-out level.

2.4 No guarantee of profit

Seven Broker does not promise, project or guarantee any return. No feature of the service, including the speed of our execution or the fact that withdrawals are approved on click, makes a profit more likely. Anyone who promises you a fixed monthly percentage, guaranteed gains or a managed account that “multiplies” your deposit is not acting on behalf of the Company, and you should treat the offer as a fraud.

3. Other risks

3.1 Market risk

The value of your positions may fall because of a change in market factors: prices of the underlying instruments, interest rates, exchange rates or commodity prices. In an adverse move, you may lose part or all of the capital you invested. Market risk also includes systemic risk, that is, the risk of disruption across an entire market or financial system.

3.2 Technical risk

Trading is carried out through electronic systems: your device, your internet connection, the cTrader terminal, our servers and the networks in between. Any of these can fail, and such failures can prevent an order from being sent, received or executed.

3.3 Operational risk

Operational risk is the risk of losses caused by failures in processes or by human error, at the Company, at you or at a third party involved in providing the service, such as a payment provider or a liquidity provider.

3.4 Country risk

The return on an investment may be affected by political change or instability in a country: a change of government, of legislation or of foreign policy, capital controls, sanctions or military conflict may affect the price, the liquidity or the tradability of an instrument.

3.5 Interest rate and currency risk

The value of an instrument may change because of a change in the level of interest rates or in the shape of the yield curve. Where an instrument is quoted or settled in a currency other than the currency of your account, movements in the exchange rate will affect the value of the position and of any amount you withdraw. Positions held overnight may be subject to a financing adjustment (swap), which accumulates for as long as the position stays open.

4. Risks beyond the control of the Company

You, and not the Company, are responsible for the consequences of the following, and this list is not exhaustive:

1. not knowing how the settings of the trading terminal work;
2. technical failures in your own device, operating system or software;
3. disclosing your login credentials to third parties;
4. unauthorised access by a third party to your e-mail account or to your trading account;
5. reading messages sent by the Company late, or not reading them;
6. trading decisions taken on the basis of information obtained from third parties, including signal providers, social media and automated strategies you install;
7. any other event of force majeure on your side.

cBots and copy trading are permitted on our platform. If you run an automated strategy, you remain responsible for every order it sends, including orders sent while you are not watching the terminal.

5. Risks specific to the instruments we offer

All instruments offered by Seven Broker are traded as CFDs on the cTrader platform. You never own the underlying asset.

5.1 Foreign exchange

Currency pairs can move sharply around economic releases, central bank decisions and political events. Liquidity varies through the day and falls at session changeovers and around holidays, which widens spreads and increases the chance of gapping.

5.2 Metals, energy and commodities

Commodity prices react to supply and demand shocks, inventory data, weather, production decisions and geopolitical events. Contracts based on futures are affected by the roll between contract months.

5.3 Indices

Index CFDs track a basket of shares and are exposed to the combined risk of that basket, as well as to trading halts and to differences between the trading hours of the index CFD and of the underlying market.

5.4 Share CFDs

A share CFD gives no ownership and no shareholder rights. Corporate actions such as dividends, splits, rights issues and mergers may result in adjustments to your position, to the price or to the financing applied.

5.5 Cryptocurrency CFDs

Cryptocurrency prices are highly volatile, can move at any hour, and can gap substantially between our trading sessions. These instruments carry a higher risk of total loss of the margin committed than the other classes listed above.

6. Costs, funding and withdrawals

Costs reduce your result and must be taken into account before you trade. On the Standard account the cost is contained in the spread, from 1.0 pip, with no separate commission. On the Raw account the spread starts at 0.0 pips and a commission of $3.50 per lot applies. Positions held overnight may also be subject to a financing adjustment. The minimum deposit is $10.

Withdrawals at Seven Broker are approved at the moment you click, without manual review. Approval on our side does not control the time taken by your payment provider or bank to credit the funds, nor any fee that provider may charge.

7. Regulatory status, client money and complaints

Complaints go to compliance@sevenbroker.net. Write from the email address registered on your account, describe what happened and attach anything that supports it. Requests about your personal data and document checks use the same address.

Seven Broker does not offer services in certain regions. By opening an account you confirm that you do not reside in any of these regions.

8. Acknowledgement

By opening an account and by trading with Seven Broker, you confirm that you have read and understood this Risk Disclosure Policy; that you understand trading CFDs involves a high level of risk and can result in the loss of all the capital you deposit; that you trade on your own decision and at your own risk; and that the Company does not promise returns, does not manage client capital and does not provide investment advice.

Questions about this document: compliance@sevenbroker.net. Anything else: contact@sevenbroker.net.