EthosTraders, Inc.  Disclaimers & Disclosures

1.  AdventForex, FX Swing Trader, FX Swing Trader Pro, the FX Super Scalper, the Forex Alternative Advisor IB course, and the Hybrid IRA course are all educational products which, along with their related publications, and other services (collectively, the “Course”), is prepared and published by EthosTraders, Inc., and offered to the general public on a paid basis through our various websites and affiliates.

2.  EthosTraders, Inc. is strictly a research publishing firm and falls within the publisher’s exemption of the definition of an “investment advisor” and is of general and regular circulation. None of our trading or investing newsletters, services, interviews, educational programs or any other form of communication provides individual customized investment advice. The information we provide and publish is based on our opinions plus our statistical and financial data and independent research. They do not reflect the views or opinions of any other newsletter.

3.  We are strictly a financial publisher and do not provide personalized trading or investment advice. Again, we are a financial publisher. We may publish information regarding Forex, options, futures, commodities, currencies or any other asset class in which we believe our subscribers may be interested and our reports reflect our sincere opinions. However, the information in our publications is not intended to be personalized recommendations to buy, hold, or sell a particular security, currency pair or invest insecurities or any other asset class. As a financial publisher, we do not or cannot offer personalized trading or investment advice to our subscribers. If a subscriber chooses to engage in trading or investing that he or she does not fully understand, we may not advise the subscriber on what to do to salvage a position gone wrong. Therefore, subscribers will need to depend on their own mastery of the details of trading and investing in order to handle problematic situations that may arise, including the consultation of their own brokers and financial advisers, accountants or attorneys they deem appropriate.

4.  Neither the Editor, the publisher, nor any of its employees or members is responsible for any errors or omissions in any of our newsletters or educational products. The commentary, analysis, opinions, advice and recommendations in the course represent the personal and subjective views of the Editor, and are subject to change at any time without notice. The information provided in our Courses, website, e-books, informative documents or newsletters contain material which is obtained from sources which the Editor believes to be reliable.  However, the Editor has not independently verified or otherwise investigated all such information. Neither the Editor, the publisher, nor any of their respective affiliates guarantees the accuracy or completeness of any such information. Our newsletters and Educational material are not a solicitation or offer to buy or sell any securities.

The Course is not a solicitation or offer to buy or sell any securities. Further, the newsletter is in no way intended to be a solicitation for private money management services offered.

You are responsible for undertaking your own due diligence and for seeking advice from your financial advisor, accountant or attorney before implementing any portion of the information you receive in our Courses, off our websites, e-book, or other informative documents, materials or newsletters.

6.  Past results are not indicative of future performance/results.

7.  Investing involves substantial risk. Neither the Editor, the publisher, nor any of their respective affiliates make any guarantee or other promise as to any results that may be obtained from using the Course. Past performance should not be considered indicative of future performance. No subscriber should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing the prospectus and other public filings of the issuer. To the maximum extent permitted by law, the Editor, the publisher and their respective affiliates disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations in the Course prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

8.  Don’t enter any trade without fully understanding the worst-case scenarios of that trade. Trading Currencies (Forex), options, or futures can be extremely complicated, so make sure you understand these trades before entering into them. For example, aggressive positions in options have a greater probability of losing, while less aggressive positions are less likely to yield substantial profits. Similarly, far out-of-the-money options are unlikely to finish in the money, and options purchased close to their expiration dates are very high-risk and, thus, likely to win big or lose big very quickly. Don’t enter any trade without fully understanding the worst-case scenarios of that trade.

9.  Profits can be lost if they are not taken at the right time. Subscribers are advised to take profits at whatever point they deem optimal, regardless of the profit target set in any given recommendation. Publications and courses, such as those we offer provide recommendations. Subscribers are free to follow the recommendation, follow it in part, or ignore it altogether. If a subscriber believes a given profit is at risk, the subscriber should take the profit. Similarly, if a subscriber feels a position is likely to lose value, or a losing position is likely to fall further, the subscriber can choose to exit at any time to preserve capital. The final decision as to when to take profits remains in the sole discretion of the subscriber, keeping in mind that profits can be lost if they are not taken at the right time.

GENERAL RISKS OF TRADING AND INVESTING

We believe it is vitally important that you read and fully understand the following risks of trading and investing:

RISKS OF FOREX and FUTURES TRADING

A futures contract is a legally binding agreement between two parties to buy or sell in the future, on a designated exchange, a specific quantity of a commodity at a specific price. Because of the volatile nature of the commodities markets and the use of leverage, trading in futures involves a high degree of risk. Futures trading is not suitable for many members of the public. Such transactions should be entered into only by persons who understand the nature and extent of their rights and obligations under futures contracts and the risks involved in the transactions covered by those contracts.

1.  Because of the impact of leverage, your losses may exceed the entire amount deposited in your account, or more. Leverage is the ability to control large amounts of money with much smaller amounts of risk capital. In futures trading, the amount of money you are required to deposit is a small percentage of the value of the futures contracts you trade. If you buy and hold a futures contract, a small positive movement in price can have a large positive impact on your account; a small negative movement in price can have a corresponding large negative impact on your account. Therefore, leverage can work against you as well as for you. Because of leverage, it is possible to lose all the money in your account very quickly. Even worse, if the funds in your account fall below the amount required by the futures broker, you will receive a margin call. A margin call is a demand from the clearing house to deposit the difference in funds by the following morning. The difference in funds can be substantial. If you cannot timely comply with this request, your positions may be liquidated at a loss and you will be liable for any remaining difference. Keep in mind that the funds in your account may fall for reasons outside your control. Therefore, you should manage leverage by limiting your trading as necessary to maintain sufficient excess margin in your account.

2.  Stop orders may reduce, but not eliminate, your trading risk. A stop market order is an order, placed with your broker, to buy or sell a particular futures contract at the market price if and when the price reaches a specified level. Stop orders are often used by futures traders in an effort to limit the amount they might lose. If and when the market reaches whatever price you specify, a stop order becomes an order to execute the desired trade at the best price immediately obtainable. There can be no guarantee, however, that it will be possible under all market conditions to execute the order at the price specified. In an active, volatile market, the market price may be declining (or rising) so rapidly that there is no opportunity to liquidate your position at the stop price you have designated. Under these circumstances, the broker’s only obligation is to execute your order at the best price that is available. Therefore, stop orders may reduce, but not eliminate, your trading risk.

GENERAL RISKS OF FUTURES OPTIONS TRADING

Buying or selling futures options or stock options is not suitable for many people, and you should not trade options unless you fully understand the risks, rights, and obligations of options trading. Use only money you can afford to lose in options trading.

1.  You should not sell options on futures unless you can meet margin calls and survive large financial losses. When you buy an option, you risk losing the entire purchase price plus the commissions paid, but not more since purchasing options on margin is not allowed. The amount you spend up front is the maximum you can lose. When you sell an option, you may be required to deposit additional margin if the price of the commodity moves adversely. You should not sell options unless you can meet margin calls and survive large financial losses. In cases where the exchange has difficulty finding buyers, the option seller is subject to the full risk of the position until the options expire.

SPECIFIC RISKS OF FUTURES OPTIONS TRADING

An option on a commodity futures contract is a legally binding agreement between two parties which gives the buyer, who pays a market determined price known as a “premium,” the right (but not the obligation), within a specific time period, to exercise the option. Buying or selling futures options is not suitable for many people, and you should not trade futures options unless you fully understand the risks, rights, and obligations of commodities options trading.

1.  The futures option, if exercised, will result in the establishment of a futures position. Both the purchaser and grantor of an option on a futures contract should realize that the option, if exercised, will result in the establishment of a futures position, subject to all the risks such contracts carry (see above). The buyer of a call option will be assigned a long position in the underlying futures if exercised, while the buyer of a put option will be assigned a short position in the underlying futures if exercised. The purchaser of an option should be aware that some option contracts provide for only a limited period of time during which an option may be exercised.

2.  You may be unable to liquidate your position because of lack of liquidity in the futures or options market. Exchange trading mechanics are designed to provide for competitive execution and to make available to buyers and to sellers a continuous market in which an option once purchased can later be sold; and in which an option, once granted, can later be liquidated by an offsetting purchase. Although each exchange’s trading system is designed to provide market liquidity for the options traded on that exchange, there can be no assurance that a liquid offset market on the exchange will exist for any particular option, or at any particular time, and for some options, no offset market on that exchange may exist at all. In such an event, it may not be possible to effect offsetting transactions in particular options. Thus, to realize any profit, a holder will have to exercise their option and have to assume all risks and to comply with margin requirements for the underlying futures contracts or, in the event of an option on a physical commodity, incur the costs and risks of holding the physical good. A grantor could not terminate its obligation until the option expired or the grantor was assigned an exercise notice. You may exercise your option but be unable to liquidate your resulting futures position because of daily price limits or lack of liquidity in the futures market.

3.  Lack of pricing limits on some options. The trader should be aware that an option may not be subject to daily price fluctuation limits even if the underlying futures position has such limits and, as a result, normal pricing relationships between options and the underlying futures may not exist. Also, futures positions assigned as a result of an expiring option may not be capable of being offset if the underlying futures contract is at a price limit.

4.  Additional risks of writing or granting futures options. The grantor of a call option who does not have a long position in the underlying futures contract (i.e. a “naked” sale or short) is subject to risk of loss should the price of the underlying futures be higher than the strike price of the option, and this loss may exceed the premium received for the initial sale of the call option. The grantor of a call option who has a long position in the underlying futures (i.e. a “covered” sale or short) is subject to the risk of decline in price of the underlying futures, less the premium received for granting the call option. In exchange for the premium received, the call option grantor gives up all of the potential gain resulting from an increase in the price of the underlying futures above the strike price of the option. The grantor of a put option who does not have a short position in the underlying futures contract (i.e. a “naked” sale or short) is subject to risk of loss should the price of the underlying futures be below the strike price of the option, and this loss may exceed the premium received for the initial sale of the put option. The grantor of a put option who has a short position in the underlying futures (i.e. a “covered” sale or short) is subject to the risk of a rise in price of the underlying futures, less the premium received for granting the put option. In exchange for the premium received, the put option grantor gives up all of the potential gain resulting from a decrease in the price of the underlying futures below the strike price of the option.

Conclusion: Once again, we stress the importance of understanding all of the risks of any form of trading or investing that you choose to do. One should fully understand the worst-case scenario prior to trading or investing real dollars. Past performance is not necessarily indicative of future results. You take full responsibility for all trading actions, and should make every effort to understand the risks involved.