This document is issued by Bharat Sky Limited ("Bharat Sky", "we", "us", "our"), Company No. 236998, licensed by the Financial Services Commission of Mauritius as an Investment Dealer (Full Service Dealer, excluding Underwriting), Licence No. GB26206475.
Trading leveraged products is high risk. This notice explains the main risks so that you can decide whether trading with us is right for you.
1. Purpose
This notice explains the main risks of trading contracts for difference ("CFDs") and margin foreign exchange contracts with Bharat Sky. It cannot describe every risk. You should read it carefully, together with our Terms and Conditions, and seek independent advice if you are unsure whether these products are suitable for you.
2. CFDs are leveraged products
Leverage allows you to open a position that is much larger than the money you deposit. This magnifies gains and losses equally. A small movement in the market can result in a loss that is large relative to your deposit, and you could lose your entire account balance quickly. Only trade with money you can afford to lose.
3. You do not own the underlying asset
A CFD is a contract with us based on the price of an underlying asset. You do not own, and have no rights in, the underlying currency, index, commodity, share or ETF.
4. Margin, margin calls and stop-out
You must keep enough margin in your account to support your open positions. If the market moves against you, we may close your positions automatically without notice once your equity reaches the stop-out level. You may not receive a margin call in time to add funds. Relying on a margin call is not a risk management strategy.
5. Negative balance protection
We apply negative balance protection to retail clients, so you cannot lose more than the funds in your account. This protects you against a negative balance; it does not protect you from losing everything you have deposited.
6. Market volatility and gapping
Prices can move sharply and unpredictably, particularly around economic announcements, at market open or close, and during periods of low liquidity. Markets can "gap", jumping from one price to another with no trades in between. In these conditions stop-loss orders may be executed at a worse price than requested, and spreads may widen significantly.
7. Execution risk
We are the counterparty to your trades. Orders are executed at the prices available on our platform, which may differ from prices shown elsewhere. Slippage, requotes and delays can occur. Stop orders are not guaranteed.
8. Overnight financing
Positions held past the daily rollover incur swap charges or credits. Over time, these can materially reduce the profitability of a position or increase a loss.
9. Technology risk
Trading relies on hardware, software and internet connectivity, any of which may fail. Platform outages, latency or data errors could prevent you from opening or closing positions. Keep your credentials secure; you are responsible for all activity on your account.
10. Educational content is not advice
The Bharat Sky Academy, blog and market news are general educational material. They are not personal recommendations and do not take your circumstances into account. Past performance, including the results of educational examples and demo accounts, is not a reliable indicator of future results.
11. Automated trading
Expert advisors, signals and copy-trading tools can execute trades without your intervention, including trades you would not have placed yourself. Losses from automated strategies are your responsibility.
12. Regulatory and jurisdictional risk
Bharat Sky Limited is regulated by the Financial Services Commission of Mauritius. The protections available to you may differ from those in your home jurisdiction, and you may not have access to a compensation scheme. It is your responsibility to ensure that trading with us is permitted where you live.
13. Suitability
CFD trading is not suitable for everyone. Before trading, consider your experience, objectives, financial resources and attitude to risk. If you do not understand the risks, do not trade.