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Basic information on typical risks for investments and trading in financial instruments is described here. This information applies to all forms of investment.

Unforeseen economic developments or incorrect forecasts can have a negative impact on the future price performance of financial instruments. Changes in the economic activity of an economy also have an impact on the price performance of financial instruments.

Inflation risk refers to the risk of financial losses for investors as a result of progressive currency devaluation (inflation).

The prices of financial instruments and securities can fluctuate considerably over time. The intensity of price movements over a certain period of time is referred to as volatility. Volatility is calculated on the basis of historical data using statistical methods. The higher the volatility of a financial instrument, the higher the investment risk. Volatility only takes into account past price movements and does not provide any reliable information about future price movements.

Market liquidity risk is the risk that, due to exceptional market circumstances, positions in financial instruments that have been or are to be transmitted to the trading centres for closing can only be closed (liquidated) at a significant discount. Under certain circumstances, there may only be a calculated price fixing for financial instruments over a longer period of time without this price fixing being based on a real turnover. In such markets, the execution of an order is not possible immediately, or only partially, or on very unfavourable terms, or in combinations. Higher transaction costs cannot be ruled out.

Investors always have a currency risk when products are held in a foreign currency. The exchange rate risk (also known as FX risk) can arise, for example, if the value of the domestic currency rises against the foreign currency. Losses can therefore arise from such transactions, even if the price rises. Currencies and foreign exchange are subject to short, medium and long-term influencing factors. Market opinions, current political events, speculation, economic developments, interest rate trends, monetary policy decisions and macroeconomic influences can affect exchange rates.

Lending against a securities account (utilising a securities loan) is an instrument that investors use to maintain liquidity in order to remain capable of acting. It should be noted that in the case of loan financing, investments must first earn the interest owed on the loan before a profit is made for the investor. If the securities account is mortgaged, the financial instruments held serve as collateral. In this case, regular margin calls must be made to ensure that the loan is sufficiently secured, otherwise the lender can cancel the loan immediately. In extreme cases, there is a risk that the lender (broker) will liquidate all or part of the securities account assets. This applies in particular if the required additional payment is not made in full or on time. There is also no guarantee that the securities account can be used to repay the debt in full in the future. This leads to further obligations to make additional contributions, insofar as this is legally permissible.

Investor taxation always has a long-term effect on the return realised on an investment. The tax treatment of gains and income from securities transactions and similar transactions may change. In addition to the direct impact on individual investors, such changes can also affect the earnings performance of companies and thus have a positive or negative impact on the price performance of financial instruments. In order to minimise risk, it is advisable to check the general tax conditions and the tax treatment of the intended investment.

Fees and transaction costs as well as ongoing costs have an impact on the profit potential and return of each transaction. The higher the costs associated with the transaction, the later the break-even point is reached. At the same time, the chances of making a profit decrease as costs have to be earned before there is a real profit on the investment. It is advisable to check the ratio of fees to the total net transaction value.

By buying and selling financial instruments on the same day (‘day trading’), price fluctuations can be used to realise profits. This is a speculative trading technique, as medium and long-term factors have a subordinate influence on price formation. It should be noted that such positions may be closed in order to avoid a price loss on the next trading day, as a result of which a loss is realised. The higher the underlying volatility of the underlying financial instrument, the higher the risk. This trading technique can mean a higher risk of total loss.

All transactions cost transaction fees, many transactions consequently result in many transaction fees. Day trading on the basis of a securities loan increases the risk as described under point 1.6. If a forward transaction is executed by means of day trading, additional collateral or equity may be required if losses occur on the same day that exceed the capital invested or the collateral deposited. In day trading, customers compete with professional and economically strong market participants. Against this background, sound knowledge and experience of the markets, trading strategies and financial instruments are required.

The involvement of other service providers (e.g. analysts, consultants, etc.) means that there are additional costs. These additional costs also have to be earned first and increase the risk of the intended transaction.

Trading outside regulated exchange opening hours or normal trading hours has special characteristics and certain risks may arise. Customers must inform themselves independently about the trading hours of the markets they are interested in. It is advisable to obtain information on when and at what times which order rules apply at the respective trading centre.

There is no guarantee of secure and loss-free execution. Trading rules on one and the same trading centre may differ from the trading rules at the official opening time. This may result in a trade not being successfully concluded, for example because there are few or no current trading partners and therefore insufficient liquidity. This can also lead to excessively large differences between supply and demand (spread) that deviate from the usual stock exchange trading hours. This is the rule rather than the exception.

Some products must be secured by additional collateral (margin) to cover possible price losses. The amount of collateral required for a product is recalculated each day by the custodian broker depending on the market situation and volatility. In the case of very volatile products, this may be several times a day. In addition, the security deposit is usually higher overnight and at weekends, as it is not possible to react to events at this time due to the lack of trading opportunities.

A share is a share certificate that certifies the membership of the owner of a share (called a shareholder) in a public limited company. The owner of the shares is not a creditor of the company, but participates in the company's share capital as a co-owner of the company's assets. Shares can have different structures with regard to transferability.

In the case of companies, only the registered persons are considered shareholders. Therefore, only they can exercise their rights themselves or through authorised representatives. If a shareholder decides not to be entered in the share register, they generally receive neither information from the company nor an invitation to the Annual General Meeting. The person therefore loses their voting rights.

In addition to the general risks of investing in securities, share trading harbours further specific risks, which are described below. As investors participate in the economic development of the company by buying shares, they also enable themselves to take advantage of the associated opportunities and risks. An entrepreneurial risk implies the danger that the entrepreneurial activity of a company will not be successful. In extreme cases, this can even lead to the insolvency of the company. In this case, the entire investment may be lost. In the event of insolvency, shareholders can only participate in the existing assets after all other creditors have been satisfied.

Past share price developments are no guarantee of future share price developments. Share prices are sometimes very volatile and are generally based on supply and demand. Share prices depend on the earnings situation of the company and the speculative expectations of the investor. The company's earnings situation is in turn influenced by the development of the economy as a whole and the political environment, among other things. In the medium term, influences from the areas of economic, currency and monetary policy overlap. However, current, temporary events such as commodity prices, international crises and unrest as well as other parameters can also influence price trends and market sentiment.

A basic distinction is made between general market risk for shares and company-specific risk. The general market risk is the risk of price changes that are attributable to general developments on the stock markets and are not directly related to the economic conditions of individual companies. However, the economic situation of a company may not have actually changed and yet the share price falls in line with the market as a whole.

The acquisition of shares in foreign companies or the maintenance of a securities account abroad may result in capital transfer restrictions that make it impossible to sell shares, receive dividends or transfer securities out of the country in question for shorter or longer periods of time. When acquiring foreign shares, it should be borne in mind that these are subject to foreign law and are structured differently to German shares. Under certain circumstances, you may need foreign lawyers, tax advisors or courts to exercise rights or fulfil obligations.

There is no guarantee that investors will always find a buyer for the shares they have purchased, particularly in the case of shares in smaller companies with a low market capitalisation or only a few outstanding shares. This can mean that either no buyer is found or a large discount on the purchase price has to be accepted.

In the case of smaller shares, especially so-called penny stocks, the number of potential buyers is often so small that these shares can only be sold to a very limited extent or not at all over a longer period of time. These shares are also susceptible to price manipulation. In the case of foreign shares, it should be noted that the investor may only be able to dispose of the sale proceeds after a longer period of time or after a transfer of ownership.

In the USA, the rule is that all companies that publicly offer shares on a stock exchange must report to the Securities and Exchange Commission (SEC). Annual financial statements and other information must be filed there and changes must be reported. There are two exceptions to these registration and reporting requirements: Penny stocks and OTC stocks.

The OTC market is an over-the-counter market and is therefore not subject to the minimum standards of shares traded on the stock exchange. Most penny stock companies list their shares on the OTC market.

Penny stocks (also known as pink sheets) are low-priced shares (small-cap shares) of small companies that are not listed on a stock exchange or the NASDAQ. These stocks are usually traded over-the-counter and are generally more volatile and less liquid than other stocks. For these reasons, penny stocks are considered speculative investments, and investors should be prepared to lose their entire investment or more, especially if they have purchased penny stocks on margin.

Before investing in penny stocks, the company issuing the stock should be thoroughly investigated. It is important to be aware of the specific risks associated with trading penny stocks. Most large, publicly traded companies file regular reports with the SEC that contain information about assets, liabilities and company performance. This financial information and operating results are available online.

In contrast, information about penny stock companies is often difficult to find, increasing the likelihood that you are the subject of an investment scam. In addition, prices quoted on the market may not be based on complete information about the company.

Trading in penny stocks harbours a number of risks:

A. Loss of the entire investment
When trading penny stocks, there is a risk of losing the entire investment or a large part of it.

B. High Risk
Although all investments involve risk, penny stocks are among the riskiest. They are generally not suitable for investors with a low risk tolerance.

C. Lack of track record
Many penny stock companies are new and have no proven track record. Some of these companies have no assets, operations or revenues.

D. Undeveloped products and services
Some penny stock companies offer products and services that are still under development or have yet to be tested in the marketplace.

E. High failure rate
Due to the factors mentioned above, penny stock companies have a higher risk of failure, which increases the risk for investors of losing all or part of their investment.

In the case of over-the-counter markets, pricing can be strongly influenced by the activities of certain securities trading institutions, so-called ‘market makers’. These market makers have notified the organisers of the exchange that they will give special treatment to certain shares and comply with the corresponding obligations in relation to these securities. Shares traded over-the-counter often have only one market maker, who may be the only interested party when an investor wants to sell the shares they have purchased. These market makers often act as proprietary traders, meaning that they buy and sell shares for their own account rather than as a broker on behalf of another client.

Prices are set by these market makers and are therefore not subject to the rules of supply and demand. This harbours considerable risks of price manipulation and unfair pricing. Due to their unique position, market makers have the opportunity to influence prices to their own advantage or to the advantage of third parties.

An option is the right to buy or sell an underlying asset such as a share, a commodity or a currency. This right is acquired against payment of the option premium. The option holder (buyer) acquires rights from the option seller (writer). If the option holder exercises his right, this is referred to as exercising the option. Options can, but do not have to, be exercised. If the option is exercised, the issuer of the option is obliged to fulfil the holder's exercise request.

If the option is not exercised, it expires at the end of the term unless it is in the money, which would otherwise mean an economic loss due to expiry. There are options that can be exercised at any time during the term (American options) and options that can only be exercised at the end of the term (European options). Despite the designation of the respective option, there are no regional restrictions associated with exercising the option. If the option is not exercised or not exercised on time, it expires on the agreed date. The option consists of:

A. Underlying
All options are based on a contractual object, the so-called underlying (shares, commodities, indices, etc.). This is the basis on which the option is created.

B. Exercise price (strike price)
The buyer and seller agree in advance on the price fixed for a later date.

C. Term
The term is the time at which the option is exercised or can expire.

D. Multiplier
The multiplier specifies the number of reference units of the underlying for each option.

There are two basic types of options: Call options (calls) and put options (puts). A call is the right to buy an asset, while a put is the right to sell an asset. The option buyer has the opportunity to exercise his rights, but is not obliged to do so. The seller of the option, also known as the writer, on the other hand, must fulfil his obligations under all circumstances if the option is exercised. The writer must wait to see whether the option is exercised and receives an option premium for this risk. If the option is not exercised, the premium represents his profit. The writer can release himself from his obligations by buying back the writer's position, also known as ‘closing out’. By buying back the option, he can also realise profits.

There are four strategic transaction types for options:

A. Long call: purchase of a call option;
B. Short call: sale of a call option;
C. Long put: purchase of a put option;
D. Short put: sale of a put option

In order to buy a call, someone else must sell this call. The same applies to puts. When you buy an option, you have a so-called long position. If an option is sold short, you have a short position.

The difference between the current price of an option and the exercise price (strike price) of the option is the intrinsic value. For example, a call option on the DAX with a strike price of 18,000 and a DAX level of 18,300 has an intrinsic value of 300 index points. The higher the difference between the daily price and the strike price, the higher the intrinsic value and therefore the more expensive the option.

The so-called time value of the option is added to the intrinsic value. The time value is the difference between the actual price of the option and the intrinsic value. For example, if the DAX is quoted at 18,300 and a call option with a strike price of 18,000 has been agreed and the option price is 450, the price of 450 exceeds the intrinsic value of the option of 300 points by 150 points. In this case, the option has a time value of 150 points.

As options are not only based on physically deliverable underlying assets, but non-physical assets can also act as underlying assets, only cash settlement takes place in these cases. This applies in particular to index options, which are pure numbers that are calculated according to certain predefined criteria and whose changes reflect the price movements of the underlying security.

A distinction is made between covered and uncovered options. With covered options, the seller of the option owns the agreed quantity of the underlying asset, which is delivered when the trade is concluded. In the case of uncovered options, the party responsible for delivery does not own the commodity. If the writer has an obligation to deliver, the writer may need to stock up on commodities at the time of delivery. In this case, the style holder's risk is unlimited upwards.

An option gives the option holder or option buyer the right to buy (call option) or sell (put option) a commodity, a currency, an underlying financial instrument or another underlying asset at an initially fixed price. In the case of options, the option holder pays a premium for the right to utilise the option. This premium is received by the contractual partner, the writer or so-called option writer or seller. An option writer has the obligation to either sell (in the case of a call option) or buy (in the case of a put option) the underlying asset at the strike price when the option is exercised. The option holder's potential loss is limited to the option premium paid, while the writer's risk can theoretically be unlimited.

Options trading involves a very high risk of loss. In options trading, commissions for each trade can, in extreme cases, lead to costs that can exceed the value of the actual option many times over. The profit margin can therefore fluctuate greatly. Leverage works in both directions, the higher the leverage, the higher the risk of each trade. The shorter the term of the option, the greater the leverage.

An option buyer must pay an option premium to conclude the trade. Whether the option holder makes a profit depends on whether exercising the option or closing the option results in a difference between the strike price and the market price. Whether a profit is realised depends on whether the difference is higher than the premium paid. As long as the difference is less than the premium paid, the option holder is in the so-called loss zone. If the strike price is never reached during the term of the option, the option buyer loses the entire premium.

Option prices fluctuate depending on a number of factors, such as the volatility of the underlying asset, remaining term and market interest rates. These fluctuations can render the option worthless. As options have a limited life, there is a risk that the option price will not recover in time.

For example, if an option has a remaining term of four months, it generally has a higher time value than an option with a remaining term of only two months. The option with a longer term can potentially benefit from price movements for longer.

Options can expire and become worthless or lose all of their value. The shorter the remaining term, the higher the risk of loss of value or total loss. Decreases in value occur if expected price movements do not materialise during the period. As options have a limited term, you cannot rely on the price recovering in time. An option position can lose your entire investment due to unfavourable market movements, the occurrence of conditions or the passage of time. With warrants, you also bear the risk that the issuer of the warrant may become insolvent. The risk of loss increases if loans are used to fulfil obligations from forward transactions. The risk of loss also increases if the consideration owed or calculated from financial futures contracts is denominated in a foreign currency or unit of account due to the exchange rate risk.

When selling options short, the investor sells options that he does not own. This is an extremely risky approach if the risk/reward ratio is not in the short seller's favour. When selling an option short, the seller first receives the option premium from the buyer. This premium represents the maximum profit potential for the seller, but is also subject to a high risk of loss. When selling a call option short, the risk of loss is theoretically unlimited, as the price of the underlying asset can rise indefinitely. When selling a put option short, the risk of loss is also high, but not unlimited, as the price of the underlying cannot fall below zero. With such trades, the limited profit potential is offset by a high risk of loss. The opportunities and risks of such trades should therefore be carefully considered in advance.

Forward transactions with unlimited risk of loss, such as options sold short in particular, must be secured by additional collateral (margin) to cover possible price losses. The amount of collateral for a product is recalculated each day by the custodian broker depending on the market situation and volatility. In the case of very volatile products, this may be several times a day. In addition, the security deposit is generally higher overnight and at weekends, as prices may fluctuate even though the stock exchange is closed.

Warrants are structured securities for risk-conscious private investors that belong to the category of leveraged products. Due to the leverage effect, high profits can be realised even with small investments, which are disproportionately high compared to direct investments. Warrants relate to product groups such as shares, indices, commodities, currencies or bonds. In addition to considerable opportunities, the leverage effect also harbours considerable risks for investors.

Changes in the price of the underlying asset always have a disproportionate effect on the price of the option compared to changes in the price of the underlying asset. This is known as the leverage effect. Call options regularly suffer a reduction in value if the price of the underlying asset falls. Put options regularly suffer a reduction in value if the price of the underlying asset rises.

Exotic warrants differ from standard options in that they are subject to additional conditions. Exotic options are a special type of financial derivative and have relatively complex payout profiles compared to traditional warrants. Therefore, the terms of the option should be carefully scrutinised before purchasing such warrants. In particular, the following types should be mentioned:

'Basket warrants' give the holder the right to buy (call) a defined basket of underlying assets or to receive a corresponding cash settlement if the option is exercised.

The option expires (knock-out) or occurs (knock-in) when the underlying reaches a predetermined price. Various structures are offered by different issuers. In order to be able to analyse and assess the specific risk, investors should obtain knowledge and detailed information.

These warrants are a securitised claim of the buyer to a previously agreed, fixed payment if the strike price is above or below the agreed strike price at the end of the term or at any time during the term.

'Turbo warrants' give the holder the right to purchase other warrants. This doubles their leverage effect. The risks and effects described also increase accordingly.

With these variants, the investor is credited a previously agreed amount for each day on which the price of the underlying is determined to be above (bottom-up variant) or below (top-down variant) the limits specified in the warrant conditions.

The price of the warrant is not determined directly by supply and demand, but is usually set by a so-called market maker. These market makers have informed the exchange organisers that they will take care of these warrants and comply with certain obligations with regard to these securities. Warrants often have only one market maker, and this market maker is also the only interested party in the event that the investor wishes to sell the warrant he has purchased.

In forward transactions or futures contracts, the contracting parties undertake to mutually fulfil the contract (payment and delivery) at an agreed future date. The subject of this so-called futures contract can be any type of security, financial instrument, commodity or currency. A futures contract includes, for example, futures, options or interest rate derivatives on traded commodities, which are settled on futures exchanges. Transactions that are carried out immediately and settled within a maximum of two days are called spot transactions.

The term futures is used as a generic term for financial and commodity futures contracts. Such forward transactions are often based on purely speculative purposes. A financial or commodity futures contract is a contract in which one party enters into an obligation to deliver and the other party enters into an obligation to purchase, which is to be fulfilled at a later agreed date. Delivery, acceptance, quantity and payment of the goods to be delivered are already agreed when the forward transaction is concluded. If these transactions are standardised and settled via an exchange, settlement is also standardised.

If an obligation or consideration is denominated in a foreign currency or unit of account or if a forward contract is concluded in which the value of the subject matter of the contract is determined accordingly, there are additional risks due to exchange rate fluctuations. Fluctuations on the foreign exchange market can cause futures to lose value due to exchange rate fluctuations or make contractual items that must be offered to fulfil obligations from futures contracts more expensive, or cause the value to increase or the sales amount to decrease.

In general, all futures are settled with the custodian broker with the settlement of the difference (cash settlement). However, some futures on commodities can also be physically delivered on express request and after prior enquiry. It is important to find out in advance whether and how physical delivery is possible. Cash settlement futures are therefore always settled somewhat earlier than physically delivered futures. As a rule, settlement takes place 2-3 days before delivery, but can also take place a month before expiry. It is therefore important to find out in advance about the last trading day for settlement of differences. This date is included in the product information.

Options can also be traded on futures. In this case, it is an option transaction that is subject to the risks and modes of operation described under 4.

Physical delivery obligations harbour particular risks when trading in commodity futures. It should be noted that sellers can demand delivery of the commodity on a forward basis from the date of the first notification resulting from the contract terms. Delivery to the place of delivery specified by the exchange shall be made within the quantity and quality range specified in the general conditions after the basic announcement. The seller may choose the exact delivery time, but must deliver within the delivery month and give one working day's written notice of delivery.

Without timely offsetting transactions (closing out of positions), buyers run the risk of suddenly being faced with a purchase obligation in the last trading month from the date of the first notification. As a seller, delivery obligations may arise if a contract expires without a timely countertrade. If a delivery obligation is entered into and this is not cancelled in time by a countertrade, the corresponding goods must be purchased, stored and delivered in the agreed quantity and quality. The additional costs incurred must also be borne. This cost risk cannot be determined in advance and can far exceed any collateral. Likewise, any obligations may exceed all personal assets.

Contracts for Difference (CFDs) are a form of derivative trading that allows investors to speculate on the price movements of financial instruments such as shares, indices, commodities and currencies without actually owning the underlying assets. CFDs offer the opportunity to profit from both rising and falling markets and are popular because of their flexibility and access to attractive leverage. However, they also carry significant risks.

The privilege of CFD trading offers extremely attractive opportunities. However, it is associated with high risks if not used properly and is therefore not suitable for all investors. It is crucial that investors fully understand how CFDs work. A thorough risk management strategy and conscious decision making are essential to minimise potential losses.

A. Leverage effect: CFDs offer a high leverage effect (see also points 6.8 and 15), which means that investors can control large positions with a relatively small amount of their own capital. This can increase profits, but also the risk of losses.

B. Market access: CFDs give investors access to a wide range of markets, often including markets that would otherwise be difficult for retail investors to access.

C. Speculation and hedging: In addition to speculating on price movements, CFDs can also be used to hedge against risks in an investment portfolio.

D. Cost: CFD trading can have lower transaction costs than buying the underlying assets directly, depending on the broker and market structure.

A. Market risk: The value of a CFD depends on market movements. Price fluctuations can lead to high losses.

B. Leverage risk: Leverage can increase both profits and losses. Small price movements can have a significant financial impact.

C. Counterparty risk: In CFD trading, the investor enters into a direct agreement with the CFD provider (issuer). There is a risk that the issuer will not fulfil its financial obligations.

D. Liquidity risk: In certain market conditions, it may be difficult to close a CFD position at a fair price, which can lead to losses.

E. Risk of margin calls: Investors may be required to make additional payments if margin requirements are not met. However, in some countries this is restricted or prohibited for private investors, e.g. in Germany.

F. Regulatory risk: Changes in the regulation of CFD trading may have an impact on the availability or conditions of trading.

CFD contracts are not traded on a regulated exchange or processed via a central clearing centre. Therefore, the rules and protection of exchanges and clearing centres do not apply to CFD trading.

A few brokers partially deviate from the following principle, as responsible brokers acquire the underlying securities themselves to minimise their own risk. In these cases, the investor can also receive the dividends, for example, if he has built up a long position. In the case of short positions, however, the situation is reversed. Investors must therefore enquire with the relevant broker about how this is handled. CFDs do not confer any ownership rights or other claims to the underlying product or asset. The profit or loss from a CFD transaction results from the difference between the purchase price and the sale price of the contract.

A. No voting rights: As the CFD investor does not own the underlying asset, he has no voting rights.

B. No dividend rights: CFD investors have no legal claim to dividends, as the investor is not the owner of the share. However, CFD brokers can make adjustments for dividend payments on equity CFDs.

C. No ownership of physical commodities: In the case of CFDs that are based on commodities or other physical goods, there is no physical exchange of the underlying asset.

CFDs are offered for a variety of underlying assets. Each asset class has specific risks associated with the characteristics of the underlying asset. Responsible brokers reflect the true market prices of the underlying assets when pricing CFDs. On the other hand, brokers or issuers that are supposedly fee-free often charge a spread premium that is far higher than the usual trading fees, resulting in relatively high costs.

The leverage effect enables investors to take a larger position in the market than their invested capital would allow. This harbours both opportunities and risks.

A. Advantages: Increased gains.

B. Disadvantage: Increased losses (See also point 15 - How financial leverage works)

The executing broker has the right to liquidate an investor's open positions without prior notice if the margin requirements (security deposit) are no longer met in the securities account of the customer concerned. This protects the broker from losses and thus all other investor clients.

The executing broker can change or increase the margin requirements at any time. This is necessary if market volatility increases and it is necessary to react to this in order to manage risks in order to protect the community of all. The investor must be prepared for such changes.

The executing broker is not obliged to provide quotes for CFDs at all times and does not guarantee the constant availability of quotes or trading in CFDs. The executing broker may stop quoting and/or accepting new CFD transactions at any time.

Investors pay commissions and financing costs for their CFD trades. These costs reduce the overall return or increase the loss. Many CFD brokers build in additional artificial spreads or continuously expand them. This makes it extremely difficult or impossible for investors to realise profits.

If CFDs are issued in a currency other than the base currency of the custody account, exchange rate fluctuations can have an additional impact on profits or losses. The executing broker applies a haircut to reflect this risk.

Fluctuating interest rates influence the financing costs or discounts for CFD positions and thus the overall profits or losses.

Changes in taxation and other laws can affect the value of CFDs and the overall return.

The executing broker may cancel, adjust or close CFD transactions to correct errors, including those due to technical errors in the platform.

Short selling of CFDs may be restricted or prohibited depending on legal regulations, market conditions or other factors. The executing broker has the right to close open short CFD positions at any time.

A fund or investment fund is a pool of money earmarked for a specific purpose. In the financial markets, we speak of open-ended investment funds for capital investment. The respective investment company collects money from investors and invests it in a variety of investments according to defined criteria. The prices are often set once a day. Examples of investment areas include shares, bonds, commodities and property. Fund companies generally charge an issuing fee and an annual management fee.

Equity funds are investment funds that invest primarily in listed shares. These funds often have specific themes, such as certain sectors (e.g. technology, food, pharmaceuticals) or regions (e.g. Germany, Europe, America, Asia). Equity funds can be categorised into different risk classes depending on the company. With active equity funds, fund managers try to beat share indices, while passive equity funds replicate indices as closely as possible. The fees for active equity funds are higher than for passive funds, as the management and operating costs are higher for active funds.

Risk funds aim to achieve high potential returns and therefore invest primarily in risky securities such as equities. Funds in risk class 4 aim to achieve significant increases in value, which is associated with high price and credit risks from share, currency and interest rate fluctuations. A total loss of the invested capital is possible with these funds. The investment period should be chosen for the long term in order to avoid short-term losses in value as far as possible.

On the foreign exchange market (also known as forex), the supply and demand for foreign exchange meet and are exchanged at the current exchange rate. The forex market is one of the largest and most liquid financial markets in the world. Private customers, companies and banks trade in different currencies all over the world and on an ongoing basis. The forex market is not located in a centralised location or at a single exchange, but is conducted electronically 24 hours a day from Sunday evening to Friday evening.

Forex trading is mainly suitable for very experienced investors because it is highly speculative. Even when all available sources are taken into account, it is difficult to make a reliable forecast of price developments. Forex trading offers very high potential returns, but profits are also subject to strong fluctuations and a total loss of capital is possible.

Exchange-traded funds (ETFs) are exchange-traded investment funds that track the performance of an index. ETFs are usually passively managed index funds. In contrast to active investment strategies, passive investment strategies do not aim to outperform the benchmark index, but to replicate it at the lowest possible cost. Investing in ETFs is similar to the general risks associated with securities.

ETFs may be subject to exchange rate risk if the underlying index is not quoted in the currency of the ETF. If the index currency weakens against the ETF currency, the performance of the ETF will be negatively affected.

ETFs passively replicate the underlying index and are not actively managed. They typically bear the basis risk of the underlying index. Therefore, ETFs move in direct proportion to the value of the underlying asset. For example, if the DAX rises, the price of an ETF tracking the DAX will also rise.

The investment risk increases with the specialisation of ETFs, e.g. in certain regions, sectors or currencies. However, this increased risk also leads to increased profit opportunities.

Replicating ETFs, which aim to replicate an underlying index or sector in real terms, have a counterparty risk. Investors may suffer losses if the swap counterparty fails to fulfil its payment obligations. A swap is a contract in which two parties agree to exchange cash flows in a certain amount and under certain conditions.

There may be deviations between the values of the index and the ETF. These deviations (tracking error) can go beyond performance differences due to ETF fees. Reasons for these deviations may be cash balances, rebalancing, corporate actions, dividend payments or the tax treatment of dividends.

ETCs are securities that enable investors to invest in commodity asset classes and trade them on stock exchanges like ETFs. In contrast to ETFs, the capital invested in ETCs is not a special asset that is protected in the event of the issuer's insolvency. ETCs are bonds issued by an ETC issuer. Investors bear the issuer risk of an ETC compared to a physically replicating ETF. To minimise this risk, issuers use various security methods. ETCs are subject to the general risks of investing in derivatives, but also specific risks.

Investments in commodities are generally subject to the same price risks as direct investments in commodities. Special events such as political conflicts, government regulations, weather fluctuations, natural disasters and general economic developments can affect the availability of commodities and cause the prices of underlying assets and derivatives to fluctuate significantly. This can also restrict liquidity and have a negative impact on prices.

Trading in derivatives involves risks associated with the structure of the derivative contracts. If the other party is unable or unwilling to fulfil its obligations under a derivative contract, it may fail to perform in whole or in part.

Similar to ETCs, exchange-traded notes (ETNs) are publicly traded, interest-free bearer bonds that track the performance of an underlying index or asset. ETNs are generally issued by banks and, unlike ETFs, are usually unsecured. The performance of an ETN depends on the underlying index or asset. ETNs are structured like unsecured, listed bonds. In addition to the general risks of investing in securities, investing in ETNs is associated with other specific risks.

Changes in the creditworthiness of the issuer can have a negative impact on the value of an ETN, regardless of the performance of the underlying index or asset. In extreme cases, the default of an issuer may result in unsecured creditor investors having to assert claims against the issuer.

Bonds (also known as bonds, debentures, annuities or debenture bonds) are interest-bearing debt securities with a fixed term until redemption. Bonds are used by companies, institutions and government organisations (issuers) to finance investments, projects or to raise capital for other financial needs. The total amount of the bond, which is divided into individual parts, is at least 100 euros. Interest is paid by the debtor to the creditor in the form of interest payments during the entire term of the bond. If a creditor's credit rating deteriorates or the general interest rate level rises significantly, the bond often loses a lot of its value and is often quoted below its nominal value.

A share represents a stake in a company. When a share is purchased, the buyer (investor) becomes a shareholder and participates in the company's capital as a co-owner. Bonds, on the other hand, represent debt capital. Similar to a bank loan, investors (bondholders) lend money to a company and receive interest in return until an agreed repayment date.

The price risk should be considered with bonds. The risk of price losses, but also the opportunity for price gains, arise from changes in the market interest rate level. If the market interest rate level rises, the prices of old bonds fall, and if the market interest rate level falls, the prices of old bonds rise. There is also the credit risk, whereby an issuer can only partially repay the capital made available to it (e.g. bonds issued) or cannot repay it at all. There is also a currency and liquidity risk.

When investing directly in physical gold or silver (bars or coins), there is a risk of a fall in the price of the precious metal in question as a commodity. If physical gold or silver ounces are traded via a financial lever, this can lead to enormous profits but also to such losses. Under certain circumstances, this may exceed the original investment amount, which means a high financial loss in the event of a loss. If spot gold and spot silver trading involves leveraged trading transactions, the investor should have the relevant experience. One risk when investing in precious metals is the currency. Precious metal prices are quoted in US dollars, so changes in the exchange rate between the relevant currency and the US dollar must be taken into account.

Certificates are always associated with a risk for the issuer, as they are bonds that promise future performance. If an issuer becomes insolvent, the investor may suffer a total loss. Certificates offer a wide range of structuring options and can therefore also entail all the risks that an investment in a financial instrument offers, whereby a total loss is also possible. In some cases, a certificate can combine several risks at the same time. Due to the wide range of design options, investors can only determine which relevant risks are associated with a particular certificate from the respective terms and conditions of the offer. Investors should only invest in certificates if they fully understand the product, its risks and the investment strategy. Investors are generally required to carefully read and take note of the key information documents and other related documentation. In case of doubt, investors should refrain from investing in such financial instruments.

A. Use of borrowed capital:
An investor uses borrowed money to increase his investment amount.

B. Increasing the position:
By using leverage, an investor can take a larger position than would be possible with their own capital.

C. Potential gains and losses:
Leverage amplifies both gains and losses. If the investment is successful, profits are higher than without leverage. Conversely, however, losses can also be greater, which can lead to a total loss of the capital invested and possibly even more.

A. Increased risk of loss
Due to the leverage effect, losses can quickly exceed the capital invested.

B. Margin calls:
If the value of the investment falls, the broker may demand additional collateral (margin). If this is not provided, the position can or will be forcibly liquidated.

C. Volatility
Leverage amplifies the effects of market fluctuations, which can lead to faster and larger profits or losses.

An investor has 1,000 euros and uses a leverage of 1:10, which means that he can control (buy) positions worth 10,000 euros. If the value of the investment increases by 10%, the profit would be 1,000 euros, which corresponds to a doubling of one's own invested capital. However, if the value of the investment falls by 10%, the loss would also be 1,000 euros, which would mean a total loss of the capital invested.

System failures and technical problems such as software errors, server failures or connection problems can result in trades not being executed on time or correctly.

Cyber attacks and data leaks can lead to losses and unauthorised transactions.

Complex trading software can be confusing, especially for beginners, which can lead to incorrect operation and thus to unwanted transactions. Errors can easily occur when entering orders, such as incorrect prices or quantities.

Excessive dependence on automated systems can lead to human judgement and intuition being neglected. Automated systems can favour quick but emotional decisions that are not always rational, resulting in a lack of emotional distance.

Even the best trading software cannot predict or fully compensate for market volatility and liquidity shortages. Dependence on a single trading access can be risky if it fails or changes unexpectedly. It is therefore advisable not only to use trading software, but also to understand access via mobile smart devices and/or website access.

The use of trading software must comply with local and international financial regulations, which is often difficult for private individuals to monitor.

Fraudulent platforms or manipulative practices are a major problem in online trading. Private traders should definitely check national local providers for their reliability and trustworthiness, e.g. TÜV certificates or regulatory authorisations from supervisory authorities such as BaFin (German Federal Financial Supervisory Authority).