Risk Disclosure
Bright Trading, LLC. Risk Disclosure for Professional Securities Trading
Association with Bright Trading, LLC. is limited to Professional Traders.
The firm does not solicit nor accept retail orders from Retail Customers. All Bright Traders must have successfully completed the Series 57 Securities Trader Qualification Examination.
Traders that join Bright Trading become Class B members of the company, and are not customers of Bright Trading. Traders and their capital contributions and accumulated profits are at a risk for loss and any loss is not provided with coverage through the Securities Investor Protection Corporation (SIPC).
Trading can be extremely risky.
Trading generally is not appropriate for someone of limited resources and limited investment or Trading experience and low risk tolerance. You should be prepared to lose all of the funds that you use for Trading. In, particular, you should not fund – Trading activities with retirement savings, student loans, second mortgages, emergency funds, funds set aside for purposes such as education or home ownership, or funds required to meet your living expenses.
Be cautious of claims of large profits from Trading. You should be wary of advertisements or other statements that emphasize the potential for large profits in Trading. Trading can also lead to large and immediate financial losses.
Trading requires knowledge of securities markets. Trading requires in-depth knowledge of the securities markets and Trading techniques and strategies. In attempting to profit through Trading, you must compete with other professional, licensed traders employed by securities firms. You should have appropriate experience before engaging in Trading.
Trading requires knowledge of a firm’s operations. You should be familiar with a securities firm’s business practices, including the operation of the firm’s order execution systems and procedures.
Under certain market conditions, you may find it difficult or impossible to liquidate a position quickly at a reasonable price. This can occur, for example, when the market for a stock suddenly drops, or if Trading is halted due to recent news events or unusual Trading activity. The more volatile a stock is, the greater the likelihood that problems may be encountered in executing a transaction. In addition to normal market risks, you may experience losses due to systems failures.
Trading may result in you paying large commissions. Trading may require you to trade your account aggressively, and you may pay commissions on each trade. The total daily commissions that you pay on your trades may add to your losses or significantly reduce your earnings.
Trading on margin or short selling may result in losses beyond your initial investment. When you trade with fund borrowed from a firm or someone else, you can lose more than the funds you originally placed at risk. A decline in the value of the securities that are purchased may require you to provide additional funds to the firm to avoid the forced sale of those securities or other securities in your account. Short selling as part of your – Trading strategy also may lead to extraordinary losses, because you may have to purchase a stock at a very high price in order to cover a short position.
LorExtended Hours Risk Disclosure Statement
You should consider the following points before engaging in extended hours trading. “Extended hours trading” means trading outside of “regular trading hours.” “Regular trading hours” generally means the time between 9:30 a.m. and 4:00 p.m. Eastern Standard Time.
• Risk of Lower Liquidity.
Liquidity refers to the ability of market participants to buy and sell
securities. Generally, the more orders that are available in a market, the
greater the liquidity. Liquidity is important because with greater liquidity it
is easier for investors to buy or sell securities, and as a result, investors
are more likely to pay or receive a competitive price for securities purchased
or sold. There may be lower liquidity in extended hours trading as compared to
regular trading hours. As a result, your order may only be partially executed,
or not at all.
• Risk of Higher
Volatility. Volatility refers to the changes in price that securities undergo
when trading. Generally, the higher the volatility of a security, the greater
its price swings. There may be greater volatility in extended hours trading
than in regular trading hours. As a result, your order may only be partially
executed, or not at all, or you may receive an inferior price when engaging in
extended hours trading than you would during regular trading hours.
• Risk of Changing Prices.
The prices of securities traded in extended hours trading may not reflect the
prices either at the end of regular trading hours, or upon the opening the next
morning. As a result, you may receive an inferior price when engaging in
extended hours trading than you would during regular trading hours.
• Risk of Unlinked Markets.
Depending on the extended hours trading system or the time of day, the prices
displayed on a particular extended hours trading system may not reflect the
prices in other concurrently operating extended hours trading systems dealing
in the same securities. Accordingly, you may receive an inferior price in one
extended hours trading system than you would in another extended hours trading
system.
• Risk of News
Announcements. Normally, issuers make news announcements that may affect the
price of their securities after regular trading hours. Similarly, important
financial information is frequently announced outside of regular trading hours.
In extended hours trading, these announcements may occur during trading, and if
combined with lower liquidity and higher volatility, may cause an exaggerated
and unsustainable effect on the price of a security.