FunderPro Ltd. is a company registered under the laws of the Republic of Malta with registration number C 104558 and registered address at Triq Ċensu Tabone, 196, ST Balluta Business Centre, Level 4, St. Julians, Malta, (“the Company”). The Company does not provide any of the investment services listed in the First Schedule of the Investment Services Act, Chapter 370 of the laws of Malta, is not a broker, and does not accept deposits.
This Risk Disclosure provides an overview of the risks associated with simulated trading activities conducted in simulated environments for educational purposes. By participating in such activities, you acknowledge that you have read, understood, and accept the risks involved.
Simulated trading accounts use real market quotes to mirror actual market conditions. However, simulated trading differs from live trading in several key aspects.
Transitioning from simulated to live trading introduces additional complexities:
Market Access and Conditions: Trading hours, liquidity, and market dynamics may vary significantly between simulated and live environments.
Financial Risk: Live trading involves the potential for significant monetary loss, including losses exceeding account balances. Simulated trading does not involve actual financial risk, and as such, any losses are purely hypothetical.
Responsibility for Deficiency: Losses in live trading may lead to legal obligations to cover deficiencies beyond the funds in the account. Simulated environments do not carry such obligations.
Orders placed in simulated platforms may not always be executed at the displayed prices. Factors such as market depth, order fills, and execution speed in simulated trading may not align with live trading conditions.
Additionally, in simulated environments, order slippage or rejections due to liquidity constraints or volatile conditions might generally not be replicated. These are key factors in live trading.
Simulated trading involves market risk, where prices fluctuate due to economic news, market sentiment, and geopolitical events. These fluctuations, while closely replicated, may not accurately represent the complexities of live market conditions.
Simulated trading lacks tangible financial impact, leading traders to exhibit psychological and emotional responses that differ from those in live trading. The absence of real-world stakes can encourage behaviors like overconfidence and excessive risk-taking.
Conversely, the psychological pressure of live trading, such as the ability to manage losses or adhere to strategies, are absent in simulated environments.
Simulated trading relies on advanced technology, and as with all technology-driven systems, there is a risk of failures, connectivity issues, or data inaccuracies may impact the performance of simulated trading. While efforts are made to minimize these risks they cannot be fully eliminated, and the experience may not replicate the conditions of live trading.
Approximately up to 15% of traders who purchase a challenge advance to the Funded Trader stage. These numbers (past performance) reflect historical data and should not be construed as a guarantee of future success.
Statistical Variability:
Success rates depend on various factors, including skill, market conditions, risk management. and trading discipline. Historical performance metrics do not account for individual trading styles or risk tolerance.
No Guarantee of Future Performance:
Success in simulated trading does not ensure future success in live trading. Live trading involves unpredictable emotional, financial, and market-related risks not captured in simulations.
Simulated results are hypothetical and do not represent actual trading activity. Trades in simulated environments are not executed in real markets, meaning the results may not fully reflect market factors such as liquidity, slippage, or order rejection. Simulated programs often benefit from hindsight, which can lead to over- or under-compensated results.
Hypothetical performance results are inherently limited and do not account for factors such as the financial ability to sustain losses, the unpredictability of market conditions, or adherence to a specific trading program. These results should not be interpreted as a guarantee of future performance.
Simulated trading environments and accompanying educational materials are intended solely for educational purposes. These are not investment recommendations, solicitations, or endorsements to engage in live trading activities.
Engaging in trading activities, whether simulated or live, is inherently risky. You should never trade with funds you cannot afford to lose. Funds such as retirement accounts, emergency savings, or money allocated for essential expenses should not be used for trading activities. Simulated trading is a tool for learning and skill development, not a predictor of live trading outcomes.
By participating in simulated trading, you accept full responsibility for your trading decisions and outcomes. You acknowledge that past performance is not indicative of future results, and success in a simulated environment does not guarantee success in live trading. By engaging in simulated trading activities, you also confirm that you understand the inherent risks, the differences between simulated and live trading, and agree to proceed at your own risk.
