Score Capital Markets (ScoreCM) Risk Disclosure Statement



ScoreCM believes its clients (you) should be fully aware of the significant risks involved in entering into over-the-counter (OTC) contracts for foreign currency, precious metals, Contracts for Difference (CFDs), and Spot Foreign Exchange (Spot FX) (collectively, "OTC Contracts"). This Statement is a brief, non-exhaustive summary of some significant factors and special risks you should consider before deciding to trade OTC Contracts. It is not investment advice and does not replace your need for independent professional advice.

Understanding OTC Contracts Before You Begin

Before undertaking any OTC Contract transactions, it is crucial that you:

  • Thoroughly understand the trading rules, terms, and conditions. This includes familiarizing yourself with risk factors like volatility (rapid price fluctuations) and liquidity (ease of buying or selling).
  • Carefully assess your investment goals, level of experience and knowledge, and risk tolerance. Trading OTC Contracts can be highly risky and is not suitable for everyone. Consider seeking independent financial advice from a qualified professional before starting to trade.

Key Risks Involved in OTC Contract Trading

Leverage: OTC Contracts are often leveraged, meaning a relatively small deposit controls a larger market position. This amplifies both potential profits and potential losses. It is crucial to understand that you can lose your entire initial investment and, in some instances, even more in certain circumstances.

Sophisticated Investments: OTC Contracts are complex financial instruments and are only suitable for sophisticated investors who possess a thorough understanding of the associated risks. These risks include, but are not limited to, the underlying assets, market dynamics, and the specific mechanics of the contracts. Consider your relevant experience, financial resources, and risk tolerance before engaging in OTC Contract trading.

Specific Risks Associated with CFDs:

  • No Set Maturity Date: Unlike traditional investments with set maturity dates, CFD positions remain open until you choose to close them.
  • High Risk of Losing All Capital: Due to the leveraged nature of CFDs, they carry a significant risk of substantial losses, potentially exceeding your initial investment.
  • Market Volatility: CFDs are exposed to the same market volatility as the underlying assets they track. This can lead to rapid price fluctuations, resulting in significant losses in a short period.
  • Margin Requirements: To maintain open CFD positions, you must maintain sufficient margin in your trading account. Failure to meet margin requirements can lead to forced liquidation of your positions, potentially at a loss.

No Guarantees of Profit: It is essential to understand that there are no guarantees of profit when trading OTC Contracts. You acknowledge that you have not received any guarantees from ScoreCM or its representatives regarding the profitability of these transactions. You are solely responsible for any losses incurred and must be financially prepared to bear such losses.

Market Conditions and Related Risks:

  • Terms Set by ScoreCM: The prices offered for trading and used for valuation of your positions are determined by ScoreCM based on prevailing market conditions and may differ from prices available elsewhere.
  • Quoting Errors: While unlikely, quoting errors may occur. In such instances, ScoreCM reserves the right to make necessary corrections to your account balance. Disputes arising from quoting errors will be resolved based on fair market value, as determined by ScoreCM in its sole discretion and acting in good faith, at the time of the error.
  • Weekend Risk: Market movements over weekends or other extended market closures can significantly impact open positions upon reopening. This could lead to unexpected losses.
  • Internet Risks: Trading via an online platform carries inherent risks associated with internet connectivity, hardware or software failures, and potential system disruptions. ScoreCM does not control these factors and is not responsible for any resulting consequences, including missed trade executions, unintended order placements, or communication delays.

Additional Considerations and Risks:

  • Stop-Loss Orders: While stop-loss orders can be used to limit potential losses, market volatility and other factors can prevent them from guaranteeing a specific exit price.
  • Spreads: The difference between the buy and sell prices set by ScoreCM, known as the spread, can impact the profitability of your trades.
  • Negative Balance Protection: ScoreCM offers negative balance protection for retail clients, limiting their potential losses to their initial investment. However, this protection does not apply to all situations.
  • Client Money:Your cash deposits are held in segregated accounts with approved banks as per relevant regulations. However, there is a small risk of not recovering all funds in the unlikely event of a bank default.
  • Investor Compensation Scheme: Depending on your jurisdiction, you may be eligible for limited compensation from a relevant investor compensation scheme if ScoreCM cannot meet its obligations.


By accessing and using ScoreCM's services, you acknowledge that you have read, understood, and accepted the inherent risks involved in trading OTC Contracts. You are solely responsible for your trading decisions and any resulting losses. ScoreCM encourages you to seek independent financial advice from a qualified professional before starting to trade.

This Risk Disclosure Statement does not cover all the risks and aspects involved in trading OTC Contracts. Please contact ScoreCM if you require more information.

Additional Notes:

  • Glossary: Consider including a glossary at the end, defining key terms like leverage, margin, and volatility, for those unfamiliar with financial terminology.
  • Examples: You could incorporate illustrative examples to explain specific risks, like the potential impact of leverage or how weekend risk can affect positions.
  • Regulatory Disclaimers: Depending on your jurisdiction, there may be additional regulatory requirements for the disclosure statement. Consult with a legal professional to ensure compliance.

This revised version provides a more comprehensive overview of the risks involved in trading OTC Contracts while maintaining a clear and concise structure. Remember, this is just an example, and it's crucial to consult with a qualified financial advisor before making any investment decisions.

RISK PROBABILITY: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. These products may not be suitable for all investors. It is important to fully understand the risks involved and seek independent advice if necessary. You should carefully consider whether you understand how CFDs work and whether you can afford to take the high risk of losing money. The value of your investment may go down as well as up.

Please review our Legal Documents to understand the risks involved before you invest. See your rights and responsibilities as a retail client.