Leverage Risk. The Fund currently intends to use leverage to seek to achieve its investment objectives. The borrowing of money or issuance of debt securities and preferred stock represents the leveraging of the Fund’s common stock. In addition, the Fund may also leverage its common stock through investment techniques, such as reverse repurchase agreements, writing credit default swaps, futures or engaging in short sales. Leverage creates risks which may adversely affect the return for the holders of common stock. Risks of Recent Market and Economic Developments. Investing in the Fund involves market risk, which is the risk that securities held by the Fund will fall in market value due to adverse market and economic conditions, perceptions regarding the industries in which the issuers of securities held by the Fund participate and the particular circumstances and performance of particular companies whose securities the Fund holds. An investment in the Fund represents an indirect economic stake in the securities owned by the Fund. The market value of these securities, like other market investments, may move up or down, sometimes rapidly and unpredictably. The NAV of the Fund may at any point in time be worth less than the amount at the time the stockholder invested in the Fund, even after taking into account any reinvestment of distributions.
Leverage Risk. The Fund currently intends to use leverage to seek to achieve its investment objectives. The borrowing of money or issuance of debt securities and preferred stock represents the leveraging of the Fund’s common stock. In addition, the Fund may also leverage its common stock through investment techniques, such as reverse repurchase agreements, writing credit default swaps, futures or engaging in short sales. Leverage creates risks which may adversely affect the return for the holders of common stock, including:
Leverage Risk. 9.1.1. When trading on "margin trading" conditions, small changes in currency values may affect the balance of the Client's trading account due to the effect of leverage. If the market movement is against the order of the Client, then the Client may incur a large loss until he can spend all the balance in the trading account as well as other funds to maintain open order positions. The client is fully responsible for the risks, use of trading tools and trading strategies.
9.1.2. It is recommended to keep the Margin level of 100% or more, and also always set a Stop Loss order to eliminate the possibility of large losses.
9.1.3. The Client must declare that he is at risk of losing/loss of part or all of his initial capital as a result of the action of buying and/or selling any Financial Instruments. The client accepts that he is willing to take the risk and agrees that he will not be able to recover any lost funds.
Leverage Risk. The ETP Securities provide leveraged exposure to the performance of the Reference Assets and as a result will be much more volatile than unleveraged investment in such Reference Assets. Relatively small changes in the value of the relevant Reference Assets may cause investors to lose some, or all, of their investment in an accelerated timescale.
Leverage Risk. 2.1.1 Unlike traditional trading, trading forex and CFDs means that you are able to trade the Markets by paying only a small percentage of the total trade value when opening a position referred to as “Margin”.
2.1.2 Due to the leveraged nature of Forex and CFD products, any small Market movement can lead to a proportionally much larger movement in value of the your position, which can work against you as well as for you and you could lose all or more than your initial Margin.
2.1.3 As the possibility exists that you could sustain a loss of your total initial margined funds and that the Margin on all open positions must be maintained at the required level in order to keep any position opens, you may be required to deposit additional funds to maintain your open position. This will not apply if you are classified as a Retail Client, as you cannot lose more than the total sum invested for trading.
2.1.4 If a position moves against you and reduces your balance so that you are below the required Margin level on a particular trade, you will be subject to a "Margin Call" and will have to pay additional money into your account to keep the position open. If you fail to meet any Margin requirements, your position may be liquidated and you will be responsible for any resulting losses. Please note that INFINOX is under no obligation to provide a Margin Call and it is your responsibility to monitor your trading positions to ensure that you meet the margin requirement(s) at all times.
2.1.5 To manage exposure, you can employ risk-management strategies such as 'stoploss' or 'limit' orders, however you must know that such strategies are not guaranteed. It is your responsibility to monitor your account and ensure that the required Margin is available on your account at all times.
2.1.6 INFINOX’s may provide leverage ratios dependent on the level of experience of clients. It should be noted that Leverage restrictions may apply to certain Products, Platforms and/or jurisdictions, as indicated on the official website of INFINOX.
2.1.7 It should be noted that INFINOX may monitor the leverage applied to client positions, at all times; INFINOX reserves the right to decrease the leverage depending on a client’s trade volume.
2.1.8 There may be specific maximum leverage limits and/or Margin requirements on certain Financial Instruments that are available for trading on our Platforms. For more information please visit our website: xxx.XXXXXXX.xxx.
Leverage Risk. Leverage risk is characterized by exposure to market risk based on a notional amount that exceeds the invested capital. Examples include option premiums or future contracts, where the exposure can be significantly higher than the initial investment.
Leverage Risk. FX Contracts and CFD's like most derivative instruments are volatile. Often, FX Contracts and CFD's are greatly "geared" or "Leveraged" and as a result, a relatively small market movement can, in addition to achieving substantial gains where the market moves in your favour, result in considerable losses, where the market moves against you.
Leverage Risk. 9.1.1. When doing business under the conditions of "margin trading", any change of rate, although relatively small, the rate can strongly influence the Customer's trading account balance due to the effect of leverage. Therefore, in events of market movement against the Customer position, he/she may bear losses in the amount of the initial deposit, as well as in any other additional funds deposited to support open orders. The Customer is entirely liable for the consideration of all risks, the use of financial instruments and the choice of the relevant trading operation strategy.
9.1.2. It is recommended to keep the margin level at 100% or more, in addition to always sending Stop Loss orders to minimize possible losses.
9.1.3. The Customer must acknowledge that he/she runs the risk of incurring partial losses or losing all of his/her initial capital as a result of the purchase and/or sale of any Financial Instrument. The Customer accepts that he/she is willing to take this risk and agrees that he/she will not be able to receive a refund of the lost money.
Leverage Risk. The Fund has issued indebtedness and preferred shares and may borrow money or issue debt securities as permitted by the 1940 Act. As of April 1, 2021, the Fund has leverage in the form of borrowings under the SSB Agreement and outstanding MRP Shares. Leverage is the potential for the Fund to participate in gains and losses on an amount that exceeds the Fund’s investment. The borrowing of money or issuance of debt securities and preferred shares represents the leveraging of the Fund’s common shares. As a non-fundamental policy, the Fund may not issue preferred shares or borrow money and/or issue debt securities with an aggregate liquidation preference and aggregate principal amount exceeding 38% of the Fund’s managed assets as measured at the time of borrowing or issuance of the new securities. However, the Board of Trustees reserves the right to issue preferred shares or debt securities or borrow to the extent permitted by the 1940 Act and the Fund’s policies. See “Leverage.” Liquidity Risk. The Fund may invest up to 15% of its managed assets in securities that, at the time of investment, are illiquid (i.e., any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment). The Fund may also invest without limit in Rule 144A Securities determined to be liquid. Xxxxxxx, under the supervision and oversight of the Board of Trustees, will determine whether Rule 144A Securities are illiquid (that is, not readily marketable) and thus subject to the Fund’s limit on investing no more than 15% of its managed assets in illiquid securities. Illiquid securities may be difficult to dispose of at a fair price at the times when the Fund believes it is desirable to do so. Investment of the Fund’s assets in illiquid securities may restrict the Fund’s ability to take advantage of market opportunities. The market price of illiquid securities generally is more volatile than that of more liquid securities, which may adversely affect the price that the Fund pays for or recovers upon the sale of illiquid securities. Illiquid securities are also more difficult to value and may be fair valued by the Board, in which case Xxxxxxx’ judgment may play a greater role in the valuation process. The risks associated with illiquid securities may be particularly acute in situations in which the Fund’s operations require cash and co...
Leverage Risk. The Fund has issued indebtedness and preferred shares and may borrow money or issue debt securities as permitted by the 1940 Act. As of March 31, 2021, the Fund has leverage in the form of borrowings under the SSB Agreement and outstanding MRP Shares. Leverage is the potential for the Fund to participate in gains and losses on an amount that exceeds the Fund’s investment. The borrowing of money or issuance of debt securities and preferred shares represents the leveraging of the Fund’s common shares. As a non-fundamental policy, the Fund may not issue preferred shares or borrow money and/or issue debt securities with an aggregate liquidation preference and aggregate principal amount exceeding 38% of the Fund’s managed assets measured at the time of borrowing or issuance of the new securities. However, the Board of Trustees reserves the right to issue preferred shares or debt securities or borrow to the extent permitted by the 1940 Act and the Fund’s policies. See “Leverage.”
