Understanding Terms and Conditions of Derivatives Contracts Sample Clauses

Understanding Terms and Conditions of Derivatives Contracts. Since derivatives trading carries a high degree of risk, prior to making investment decisions, the Customer should carefully study and understand each category of contract specifications; including, but not limited to, the type of underlying assets and variables, contract size/unit/multiplier, last trading day, settlement day, delivery or settlement method, and the delivery or reference price used to determine settlement price and margin requirements. The Customer should consider whether the investment is suitable for his/her investment purposes and financial status. With respect to trading options, the Customer should also understand other relevant terms and conditions, including the type of options, e.g. put options or call options, exercise conditions, type of underlying assets and variables. The Customer should consider whether the investment is suitable for his/her investment purposes, and whether the risk exposure is acceptable. The Customer should also consider the potential of a return on acquiring a position, the amount of premium and transaction fees and possible losses.