Common use of Risk-Reducing Orders or Strategies Clause in Contracts

Risk-Reducing Orders or Strategies. The placing of certain order s (e.g. "stop-loss" orders, where permitted under local law, or "stop- limit" orders) that are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders. At times, it may also be difficult or impossible to liquidate a position without incurring substantial losses. Strategies using combination s of positions, such as "spread" and "straddle" positions, may be as risky as taking simple "long" or "short" positions. Market conditions (e.g. liquidity) and/o r the operation of the rules of certain markets (e.g. the suspension of trading in any contract or contract month because of price limits, government intervention or reasons beyond the counterparty's control) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions.

Risk-Reducing Orders or Strategies. The placing of certain order s (e.g. "stop-loss" orders, where permitted under local law, or "stop- limit" orders) that are intended to limit losses to certain amounts may not be effective because market conditions may make it impossible to execute such orders. At times, it may also be difficult or impossible to liquidate a position without incurring substantial losses. Strategies using combination s of positions, such as "spread" and "straddle" positions, may be as risky as taking simple "long" or "short" positions. Market conditions (e.g. liquidity) and/o r and/or the operation of the rules of certain markets (e.g. the suspension of trading in any contract or contract month because of price limits, government intervention or reasons beyond the counterparty's control) may increase the risk of loss by making it difficult or impossible to effect transactions or liquidate/offset positions.