⚠ Futures Trading Risk Disclosure
Last updated: 12 September 2025
Important Risk Warning
Trading futures and options on futures involves substantial risk and is not suitable for all investors. In extreme circumstances, your losses may exceed your initial deposit. Only risk capital should be used, and you must carefully consider whether trading is appropriate for your financial situation, experience, and objectives.
Not Investment Advice
Information on this site is provided for education and general information only. It does not constitute investment, tax, accounting, or legal advice, nor is it a recommendation, solicitation, or an offer to buy or sell any financial instrument. We do not consider your personal circumstances. Seek independent advice where appropriate.
Liability Disclaimer
Best Futures Trading Platform shall not be liable for any direct, indirect, incidental, or consequential loss or damage arising from reliance on the information provided on this site. All use of this information is strictly at your own risk.
Leverage and Margin
Futures are leveraged products. Small price movements can have a large impact on your equity. Leverage or margin trading can amplify both gains and losses, and you may incur losses exceeding your initial investment. If equity falls below maintenance margin, you may receive a margin call or have positions liquidated without notice. You remain liable for any resulting deficit.
Volatility, Gapping & Limit Moves
Prices can change rapidly and may gap between sessions or after major news events. Daily price limits, limit-up/limit-down bands, and trading halts can delay or prevent execution, increase slippage, and magnify risk.
Liquidity & Execution Risk
Bid/ask spreads may widen during stress or low-volume hours. Stop, stop-limit, and market orders may fill at worse prices than expected or not at all. Partial fills and rejected orders can occur. Liquidity can vanish suddenly in stressed markets.
Contract Specs, Delivery & Expiry
Each contract has unique specifications (tick size, tick value, trading hours, settlement method, last trade date, delivery procedures). Failure to close or roll a physically delivered contract may result in delivery obligations. Always review the relevant exchange’s contract specifications.
Rollover, Term Structure & Carry
Rolling positions across expiries can incur costs or benefits ("roll yield"). Futures curves in contango or backwardation impact returns. Strategies relying on frequent rolling are sensitive to calendar spreads and funding costs.
Correlation & Basis Risk
Futures contracts may not perfectly track the underlying index or commodity (basis risk). Correlations between markets can change rapidly, especially around macroeconomic or geopolitical events, reducing hedge effectiveness.
Short Positions & Volatility Exposure
Shorting futures carries theoretically unlimited risk. Short volatility strategies (such as selling front-month volatility) can incur sudden and outsized losses during market shocks or volatility spikes.
Options on Futures
Options involve additional risks: time decay, changes in implied volatility, early exercise/assignment, and complex Greeks. Writing uncovered options can expose traders to unlimited losses.
Day-Trading Disclaimer
Day trading strategies involve significant risks and are not suitable for most investors. Rapid order execution, leverage, and volatility can result in large, rapid losses. Regulators such as FINRA highlight that day trading is a high-risk strategy and should only be undertaken by highly experienced traders.
Past Performance & Hypotheticals
Past performance is not indicative of future results. Modeled or backtested performance has inherent limitations. Such results are based on hindsight and assumptions and may not reflect actual trading conditions (liquidity, slippage, impact, behavioral factors). There is no guarantee that any trading strategy will achieve similar outcomes.
Psychological & Emotional Risks
Trading can involve psychological stress and emotional decision-making, which may negatively impact results. Traders should be aware of these behavioral factors and the risks of overtrading, revenge trading, and stress-related errors.
Technology & Data Risks
Trading depends on hardware, software, internet connectivity, and third-party systems (exchanges, brokers, data vendors). Failures, outages, or latency can cause missed or erroneous executions. Market data may be delayed, incorrect, or inconsistent across providers. Do not rely on a single source of data for critical decisions.
Commissions, Fees & Taxes
Costs include commissions, exchange/clearing fees, market data subscriptions, and platform charges. Taxes depend on your jurisdiction and instrument. Consult a qualified tax advisor. Trading costs and taxes can materially reduce returns.
Regulatory & Eligibility Matters
Access to futures products varies by country and regulatory regime. You are responsible for complying with local laws, licensing, and eligibility requirements. Some products are unsuitable or restricted in certain jurisdictions.
Conflicts of Interest & Compensation
We may receive compensation from brokers or partners for referrals, advertising, or content placement. Such relationships may create conflicts of interest. While we aim to provide accurate, balanced information, commercial arrangements can influence placement and coverage. Details are available upon request.
Acknowledgment
By using this site and engaging with its content, you acknowledge that you have read, understood, and accept the risks described above, as well as those in your broker’s official risk disclosures.