Risk warnings and disclosures

Any opinions, news, research, analysis, prices, trade discussions or other information contained on this website are educational in nature and merely provided as a presentation of trading strategies. Commentaries made on this website reflect our own opinions and trading techniques and do NOT constitute investment advice. Enigma Strategy is purely providing clients with their view. Clients make the final decision and are trading on an execution only basis. 

Enigma Strategy will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.

The sites visitors and subscribers access to the information contained in this website are on the condition that errors or omissions shall not be made the basis for any claim, demand, or cause of action against Enigma Strategy or anyone affiliated therewith.

Forex, Futures, Margined Forex trading have large potential rewards, but also large potential risks. You must be aware of the risks and be willing to accept them in order to invest in the Forex, Futures, Stock, and/or Options markets. Clients are strongly advised to not trade with money they can not afford to lose.

This is neither a solicitation nor an offer to Buy/Sell Currencies, Futures, Stock, and Options.

No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.

Any statements about profits or income, expressed or implied, do not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. 

You accept full responsibility for your actions, trades, profits or losses, and agree to hold Enigma Strategy and any authorized distributors of this information harmless in any and all ways.

Enigma Strategy assumes no responsibility for errors, inaccuracies or omissions in these materials or website. They do not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials or website.

Enigma Strategy shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials. This website and its email are not a solicitation to buy or sell currency.

 

Risk warning and disclaimer

Risk Warning 

You acknowledge that you have read the notice set out below that you understand the nature of the risks which are inherent in securities trading and that you are prepared to accept these risks.  

16.1 General Risk Warning: The past performance of any investment is not necessarily a guide to future performance. The value of investments or income from them may go down as well as up. As stocks and shares are valued from second to second, their bid and offer value fluctuates sometimes widely. The value of shares may rise as well as fall due to, and not just include, the volatility of world markets, interest rates, economic conditions/data and/or changes in the rate of exchange in the currency in which the investments are denominated. You may not necessarily get back the amount you invested.  

16.2 Alternative Investment Market: This is a market designed primarily for emerging or smaller companies. The rules of this market are less demanding than those of the official List of the London Stock Exchange and therefore carry a greater risk than a company with a full listing. With AIM shares there is often a big difference between the buying price and the selling price. If they have to be sold immediately, you may get back much less than you paid for them. The price may change quickly and it may go down as well as up.  

16.3 Penny Shares. You run an extra risk of losing money when you buy shares in certain smaller companies including “penny shares”. There is a big difference between the buying price and the selling price of these shares. If you have to sell them immediately, you may get back much less than you paid for them. You may have difficulty in selling these shares. The price may change quickly and it may go down as well as up and it may be more difficult to buy and sell shares in the penny share category. You should not invest amounts that you cannot afford to lose. 

16.4 NEX Exchange (NEX).  The NEX Exchange is authorised as a Prescribed Market and Recognised Investment Exchange under the FSMA 2000. It may be difficult to obtain reliable information about the current trading position of companies on NEX however, and if there is only one market-maker quoting prices, there may be occasions where you may have difficulty in buying or selling shares at a reasonable price or at all. Similarly, the difference between the buying and selling prices can be wide and prices being quoted on NEX may only be indicative prices and not firm two-way prices. Additionally, there may have been little or no trading in the stock since its issue. Consequently, there is a higher level of risk attached to companies trading on NEX and if you have to sell shares in these companies immediately, you may get back much less than you paid for them or be unable to sell them at all. 

16.5 Non-readily Realisable Investments. You may have difficulty in selling such investments at a reasonable price. In some circumstances, it may be difficult to sell them at any price. It can be difficult to assess what would be a proper market price for these investments. You should not invest in these unless you have thought carefully about whether you can afford it and whether it is right for you. 

16.6 Foreign markets will involve different risks to UK markets. In some cases, the risks will be greater. On request, your broker must provide an explanation of the protections which will operate in any relevant foreign markets, including the extent to which he will accept liability for any default of a foreign broker through whom he deals. The potential for profit or loss from transactions on foreign markets will be affected by fluctuations in foreign exchange rates. 

16.7 A warrant is a right to subscribe for shares, debentures, loan stock or government securities, and is exercisable against the original issuer of the securities. Warrants often involve a high degree of gearing, so a relatively small movement in the price of the underlying security results in a disproportionately large movement in the price of the warrant. The prices of warrants can therefore be volatile. You should not buy a warrant unless you are prepared to sustain a total loss of money you have invested plus any commission or other transaction charges. Some other instruments are also called warrants but are actually options (for example, a right to acquire securities that are exercisable against someone other than the original issuer of the securities, often called a 'Covered). 

16.8 Transactions in off-exchange warrants may involve greater risk than dealing in exchange-traded warrants because there is no exchange market through which to liquidate your position, to assess the value of the warrant or the exposure to risk. Bid and offer prices need not be quoted, and even where they are,  they will be established by dealers in these instruments and consequently, it may be difficult to establish what is a fair price. Your broker must make it clear to you if you are entering into an off-exchange transaction and advise you of any risks involved. 

16.9 Structured Product Risk Warning: Structured Products are complex financial instruments, which entail considerable risks and, accordingly, are only suitable for investors who have the requisite knowledge and experience and understand thoroughly the risks connected with an investment in these Structured Products and are capable of bearing the economic risks. The products are denominated in GBP, USD,  CHF and EUR. If the investor’s reference currency differs from the aforementioned, the investor bears the risks between GBP, USD, CHF and EUR and their reference currency. 

16.10 Execution Only Risk Warning: We will inform you if you have been classified as an execution-only client. As an execution-only client, you have been informed that investments within the markets chosen are only suitable for experienced investors. Any decisions on investments are purely your own choice and Enigma Strategy will not provide any advice on these investments. We will execute the transactions for you only. You will therefore be responsible for loss with the investments chosen. Please ensure you fully read and understand the risks involved in any decision you make. If you have any doubt whether any investment is suitable for you, you should obtain expert advice.
16.10.1 Markets may be volatile and it may be difficult or impossible to liquidate a  position: Under certain trading conditions it may be difficult or impossible to liquidate a position. This may occur, for example, at times of rapid price movement if the price rises or falls in one trading session to such an extent that trading in the underlying market is suspended or restricted. 
16.10.2 Non-Guaranteed Stops do not necessarily cap your loss to the intended amount: Placing Non- Guaranteed Stop Order will not necessarily limit your losses to the intended amounts, because market conditions may make it impossible to execute such an Order if the underlying market moves straight through the stipulated price. 
16.10.3 Before you begin to trade, you should obtain details of all commissions and other charges for which you will be liable. If any charges are not expressed in money terms (but, for example, as a percentage of contract value), you should obtain a clear and written explanation, including appropriate examples, to establish what such charges are likely to mean in specific money terms. 

16.11 Futures Risk Warning: Transactions in futures involve the obligation to make, or to take delivery of the underlying asset of the contract at a future date, or in some cases to settle your position with cash. They carry a high degree of risk. The “gearing” or “leverage” often obtainable in futures trading means that a small deposit or down payment can lead to large losses as well as gains. It also means that a relatively small market movement can lead to a proportionately much larger movement in the value of your investment, and this can work against you as well as for you Futures transactions have a contingent liability, and you should be aware of the implications of this, in particular the margining requirements, which are set out in the paragraph “Contingent Liability Transactions”.

16.12 Options Risk Warning: There are many different types of options with different characteristics subject to different conditions: Buying Options: Buying options involves less risk than selling options because, if the price of the underlying asset moves against you, you can simply allow the option to lapse. The maximum loss is limited to the premium, plus any commission or other transaction charges. However, if you buy a call option on a futures contract and you later exercise the option, you will acquire the future. This will expose you to the risks described under “Futures” and “Contingent Liability Transactions”

16.13 Writing Options Risk Warning: If you write an option, the risk involved is considerably greater than buying options. You may be liable for margin to maintain your position and a loss may be sustained well in excess of any premium received. By writing an option, you accept a legal obligation to purchase or sell the underlying asset if the option is exercised against you, however far the market price has moved away from the exercise price. If you already own the underlying asset which you have contracted to sell (known as “Covered Call Options”) the risk is reduced. If you do not own the underlying asset (known as “Uncovered Call Options”) the risk can be unlimited. Only experienced persons should contemplate writing uncovered options, and then only after securing full details of the applicable conditions and potential risk exposure.

16.14 Traditional Options Risk Warning: A particular type of option called a “Traditional Option” is written by certain London Stock Exchange firms under special exchange rules. These may involve greater risk than other options. Two-way prices are not usually quoted and there is no exchange market on which to close out an open position or to effect an equal and opposite transaction to reverse an open position. It may be difficult to assess its value or for the seller of such an option to manage his exposure to risk. Certain options markets operate on a margined basis, under which buyers do not pay the full premium on their option at the time they purchase it. In this situation, you may subsequently be called upon to pay margin on the option up to the level of your premium. If you fail to do so as required, your position may be closed or liquidated in the same way as a futures position.

16.15 Foreign Exchange Risk Warning: Transactions in Foreign Exchange contracts carry a high degree of risk and may not be suitable for all investors. The “gearing” or “leverage” often obtainable in Foreign Exchange trading means that a relatively small market movement can lead to a proportionately much larger movement in the value of your liability. Before deciding to trade foreign exchange, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts. Contingent Liability Transactions:

16.16 Contingent liability transactions Risk Warning, such as CFDs and other financial products traded on margin will require you to make a series of payments against the purchase price, instead of paying the whole purchase price immediately. If you trade in CFDs or other products traded on margin you may sustain a total loss of the margin you deposit to establish or maintain a position. If the market moves against you, you may be called upon to pay substantial additional monies or margin at short notice to maintain the position. If you fail to do so within the time required, your position may be liquidated at a loss and you will be liable for any resulting deficit. Even if a transaction is not margined, it may still carry an obligation to make further payments in certain circumstances over and above any amount paid when you entered the contract. CFD trades will be carried out for you whenever possible on or under the rules of a recognised or designated investment exchange. However, contingent liability transactions entered into by you that are not traded on or under the rules of a recognised or designated investment exchange (such as foreign exchange transactions) may expose you to substantially greater risks. Before you begin to trade, you should obtain details of all commissions and other charges for which you will be liable. If any charges are not expressed in money terms (but, for example, as a percentage of contract value), you should obtain a clear and written explanation, including appropriate examples, to establish what such charges are likely to mean in specific money terms. In the case of futures, when commission is charged as a percentage, it will normally be as a percentage of the total contract value, and not simply as a percentage of your initial payment.

 

Enigma Strategy disclaimer statement:
Enigma Strategy services are speculative trading techniques designed to buy and sell margined FX contracts. No claims as to past, present or future profitability of these signal services or other Enigma Strategy methods are made, and there is no guarantee that our system and techniques will provide any profits to traders using the system and techniques, and indeed may cause such traders to incur losses.

All signals generated are provided for educational purposes only. Any trades placed upon reliance on signals are taken at your own risk for your own account. Past performance is no guarantee of future results. While there is great potential for reward when trading margined FX, there is also a substantial risk of loss. You must decide your own suitability to trade.

Future trading results can never be guaranteed. This is not an offer to buy or sell currencies, futures, options or commodity interests. The signals generated by Enigma Strategy and/or copied to client account are based on historical formulas which have worked in the past. However, what has happened before may or may not happen again. You can lose all your money trading forex and you must decide your own suitability as to whether or not to trade. Only trade with true risk capital you can afford to lose. Only trade markets you can properly afford to trade. 

 

Final Warning
The risk of loss in trading foreign exchange (forex) can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. The high degree of leverage that is often obtainable in forex trading can work against you as well for you. The use of leverage can lead to large losses as well as gains.

Forex trading offers large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex market.

Don’t trade with money you cannot afford to lose.

We at Enigma Strategy work hard to provide our customers with strategies, but no strategy is perfect. There are no guarantees or certainties in trading.
Reliability of trading signals for our systems and strategies is in probabilities only. Trading involves hard work, risk, discipline and the ability to follow rules and trade through any tough periods during a system drawdown. If you are looking for guarantees, trading is not for you. The majority of leveraged traders lose money trading. One of the reasons is that they lack discipline and are unable to be consistent. A system can help you become consistent. The ability to be disciplined and take the trades is equally as important as any technical indicators a trader uses.

It is important to only trade with true risk capital.

By using our products and services you agree to hold Enigma Strategy and anyone involved in the development, production and distribution of any trading systems/strategies purchased through Enigma Strategy free of any responsibility or liability for any losses sustained while trading with live funds. Any live trading that you do, be it manual or automated, you do so at your own risk and discretion. Once again, leveraged Forex carries significant risks. You can lose large sums of money by taking the risk of trading in the live market. Enigma Strategy shall not be held responsible for any losses that you might incur during any trades.
This is neither a solicitation nor an offer to Buy/Sell currencies, futures, stocks or options on the same. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed verbally or written on any literature by Enigma Strategy. The past performance of any trading system/strategy or methodology is not necessarily indicative of future results. No guarantee is made that you will be able to replicate the same results.

This site is not intended for distribution, or use by, any person in any country where such distribution or use would be contrary to local law or regulation. None of the offered products or services referred to in this website are available to persons residing in any country where the provision of such services or investments would be contrary to local law or regulation. It is the responsibility of visitors to this website to ascertain the terms of and comply with any local law or regulation to which they are subject.

 

Disclaimer for external links
Links are being provided as a convenience and for informational purposes only. They do not constitute an implicit or explicit endorsement or an approval by Enigma Strategy of any of the products, services, or opinions of the corporation, organization, or individual. Enigma Strategy bears no responsibility for the accuracy, content, or any other matter related to the external site or for that of subsequent links. Contact the external site for answers to questions regarding its content.

 

Regulatory DIsclosures

MiFIDPRU 8.6 Remuneration disclosure

Scope and purpose 

This disclosure relates to Enigma Strategy, which is classified as a small and non-interconnected (SNI) MIFIDPRU Investment Firm and is therefore required under MIFIDPRU 8.6 to disclose information relating to remuneration policies and practices.

In accordance with the rules, the disclosures herein are appropriate to the size, internal organisation, nature, scope, and complexity of the Firm’s activities.

Approach to remuneration

Base salaries provides pre-determined, non-revocable compensation paid to individuals throughout the year, irrespective of Firm or individual performance. Base salaries and benefits constitute a significant proportion of the Firm’s total remuneration.  This fixed element is based on the professional experience and responsibility within the Firm of an individual.

The Firm runs a discretionary bonus scheme that is based on individual performance as well as the Firm’s underlying profitability. The bonus does not form part of an individual’s contractual remuneration. The size of the bonus pool is linked to the overall performance of the Firm. The employee incentive payment is linked to the contribution of the individual to such performance. Bonuses are discretionary and will diminish or disappear in the event of poor business or individual performance.

When considering individual performance, the Firm considers both financial and non-financial metrics. To not incentivise unacceptable risk taking, fixed remuneration comprises most staff compensation.

The objective of financial incentives

The objective of providing financial incentives is to promote behaviour that is aligned with the Firm’s long-term interests, strategic objectives, and ethical standards. Financial incentives are used to reward individual performance, as well as performance in excess of the staff member’s job description and terms of employment.   

Governance and decision-making procedures

The Firm is required to implement and maintain remuneration policies, procedures, and practices for all directors and employees that are consistent with and promote sound effective risk management.

The policy is intended to cover all aspects of remuneration and has been created in accordance with the MIFIDPRU Remuneration Code (SYSC 19G). 

The remuneration practices and policies are intended to:

 

• promote sound risk management practices in alignment with the Firm’s risk management principles;

 

• discourage risk taking that is inconsistent with the Firm’s risk appetite or risk management policies and principles;

 

• control fixed costs by ensuring that remuneration expense varies according to profitability and does not place undue constraints on the Firm’s ability to maintain its capital base;

 

• link remuneration to the Firm’s financial and operational performance as well as individual performance;

 

• provide competitive, but not excessive, levels of remuneration compared to peer Firms of appropriate size, scope, and complexity; and

 

• promote a positive culture towards risk management and compliance.

The remuneration practices and policies are intended to support the Firm’s business strategy, long-term interests, and values, and to ensure that risk-taking does not exceed the Firm’s tolerated level of risk.

Periodic benchmarking ensures that remuneration at the individual level is not unreasonable or disproportionate to the amount, nature, quality, and scope of the work performed. 

The remuneration policy outlines the criteria used to assess the performance of the Firm and of individual staff members. The Firm’s performance is assessed against its overall financial performance, as well as other measures such as new business gained, client satisfaction, and employee retention rates.

In assessing the performance of individual staff members, the Firm takes into account financial and non-financial criteria. Non-financial criteria include:

(a) measures relating to building and maintaining positive customer relationships and outcomes, such as positive customer feedback;

(b) performance in line with firm strategy or values, for example by displaying leadership, teamwork or creativity;

(c) adherence to the firm’s risk management and compliance policies;

(d) achieving targets relating to:

(i) environmental, social and governance factors; and

(ii) diversity and inclusion.

 

Risks associated with CFD trading
Trading foreign currencies can be a challenging and potentially profitable opportunity for investors. However, before deciding to participate in the Forex market, you should carefully consider your investment objectives, level of experience, and risk appetite. Most importantly, do not invest money you cannot afford to lose.
There is considerable exposure to risk in any foreign exchange transaction. Any transaction involving currencies involves risks including, but not limited to, the potential for changing political and/or economic conditions that may substantially affect the price or liquidity of a currency. Investments in foreign exchange speculation may also be susceptible to sharp rises and falls as the relevant market values fluctuate. The leveraged nature of Forex trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. Not only may investors get back less than they invested, but in the case of higher risk strategies, investors may lose the entirety of their investment. It is for this reason that when speculating in such markets it is advisable to use only risk capital.

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Electronic Trading Risks
Before you engage in transactions using an electronic system, you should carefully review the rules and regulations of the exchanges offering the system and/or listing the instruments you intend to trade. Online trading has inherent risk due to system response and access times that may vary due to market conditions, system performance, and other factors. You should understand these and additional risks before trading.

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IF YOU ARE UNSURE ABOUT DEALING IN ANY SPECIFIC INVESTMENT YOU SHOULD SPEAK TO AN AUTHORISED FINANCIAL ADVISER