PocketImportant Warning
Trading binary options and CFDs involves a high risk of loss of invested capital. You may lose some or all of your funds. Do not invest money you cannot afford to lose. If you do not understand the risks associated with trading, seek independent financial advice.
1. General Risk Information
Trading on financial markets involves significant risk of financial loss. Past trading results are not a guarantee of future profits. The Pocket Option platform provides access to trading in binary options and other financial instruments exclusively for persons who understand and accept the associated risks.
Before trading, it is recommended to: study how binary options and other instruments work; practice on a demo account; understand the factors that drive price movements; develop a trading strategy with risk management rules.
2. Binary Options Risks
Risk of total loss: By its nature, a binary option is a bet on the direction of an asset's price movement. If the forecast does not match the actual movement, the invested amount is lost in full. Unlike traditional investments, a binary option has no intermediate value — the result is binary: full win or full loss.
Short-term nature: Trading on short time intervals (from 60 seconds) increases the impact of random market fluctuations and reduces the relevance of fundamental analysis. High-frequency trading on short intervals statistically leads to losses for the majority of traders.
Structural advantage of the company: The payout on a winning trade is always less than 100% of the invested amount (typically 60–95%), while a losing trade results in 100% loss. This means that to break even, a success rate above 50% is required, and to generate profit, an even higher percentage of successful forecasts is needed.
3. Market Risk
Prices of financial assets depend on numerous factors: economic data releases, central bank decisions, geopolitical events, natural disasters, and actions of major market participants. No analytical method guarantees accurate price movement forecasting. Market volatility can increase sharply during major economic data publications.
4. Liquidity Risk
During periods of low market activity (holidays, weekends, early morning hours), spreads on some assets may widen. The platform may restrict or suspend trading in specific instruments during periods of extreme volatility or scheduled maintenance.
5. Technology Risk
Internet-based trading involves technological risks: data transmission delays, unstable internet connection, technical failures on the platform or payment providers' side. The Company takes measures to ensure platform stability but does not guarantee 100% uptime.
6. Counterparty Risk
As with any online broker, there is a risk of counterparty default. Gembell Limited mitigates this risk by holding client funds in segregated accounts, maintaining operational reserves, and complying with MISA regulatory requirements.
7. Currency Risk
If your base currency differs from USD, exchange rate fluctuations may affect the real value of your deposit and profits. Deposits in foreign currencies are converted at the exchange rate at the time of crediting, and withdrawals at the rate at the time of processing.
8. Regulatory Risk
Financial services legislation may change. Some jurisdictions prohibit or restrict binary options trading. Users are solely responsible for compliance with the laws of their country of residence. The Company may restrict platform access for residents of certain jurisdictions.
9. Psychological Risk
Trading involves emotional risks: fear of losses, euphoria from wins, attempts to "recover" after losses — all of which lead to irrational trading decisions. It is recommended to trade according to a pre-established plan, strictly observe capital management rules, and never trade under emotional influence.
10. Acknowledgment of Risk Awareness
By registering on Pocket Option, users confirm that they: have read this risk disclosure document; understand the high risk of trading financial instruments; only invest funds they can afford to lose; accept full responsibility for trading decisions and their consequences; have sought independent financial advice if required.