Risks and Commissions
Understanding and accepting the various risks is essential for market participation in the international commodity exchanges. The risks arise to a large extent from the fact that on the commodity exchanges the commodities themselves are traded on the basis of futures contracts or options. Options on such are traded. These derivatives have a leverage effect; accordingly, a defined, high quantity (contract size) of the underlying commodity can be moved with a relatively small capital investment.
The risks are counterbalanced by the potential returns. The higher the return potential, the higher the risks. Commodity derivatives also allow capital gains on falling commodity prices.
The options contracts (long calls / long puts) brokered by LVAM are not subject to any margin calls. When trading in futures contracts, the risk is in principle unlimited, and the possibility of a margin call cannot be ruled out.
The options contracts (long calls / long puts) brokered by LVAM are not subject to any margin calls. When trading in futures contracts, the risk is in principle unlimited, and the possibility of a margin call cannot be ruled out.
Options and futures are among the riskiest financial instruments within the investment pyramid. We know the market risks and advise our customers openly and transparently. Therefore, let our customer advisors inform you. They will inform you about profit opportunities, risks and the amount and significance of transaction costs (commissions).
