Market risk
Prices can move rapidly because of economic releases, issuer events, interest rates, policy decisions or market sentiment. Losses may exceed expected ranges.
Risk disclosure
You can lose money when trading or investing.
Read these risks before opening an account, funding it or activating a strategy. Automated tools change how decisions are executed; they do not remove uncertainty.
Core risks
Nine areas to consider together.
The significance of each risk depends on the instrument, strategy, market and your circumstances.
Liquidity risk
An asset may be difficult to buy or sell at the displayed price, especially during stressed markets or outside active trading hours.
API and integration risk
Connections can fail, delay data or transmit an instruction incorrectly. A displayed status may not reflect the external venue immediately.
Counterparty and custody risk
A broker, exchange, bank or custodian may fail, restrict access or hold assets under terms that limit recovery.
Operational risk
Human error, process failure, incorrect configuration or unavailable staff can interrupt service or create loss.
Cybersecurity and phishing risk
Attackers may steal credentials, impersonate support or redirect payments. Security controls cannot prevent every attempt.
Model and automation risk
A strategy can behave poorly when assumptions fail, data changes or markets move outside the conditions used to design it.
Service availability risk
Maintenance, network disruption or third-party outages can delay monitoring, changes or withdrawals.
Execution and process risk
An order may be rejected, partially filled or completed at a different price. Withdrawal reviews can take longer when details need verification.
Digital assets
Volatility and protection require special attention.
Crypto markets can trade continuously, move sharply and depend on custody technology. Legal treatment and recovery options can differ from securities or bank deposits.
Cash deposits with a member institution may be eligible for CDIC coverage, subject to its rules. Eligible securities held by a member investment dealer may be covered by CIPF, subject to its limits. Crypto and other digital assets are generally not covered by CDIC or CIPF.
Risk decisions
Use controls, not assumptions.
Set an amount
Use only capital you can afford to expose to loss.
Understand the strategy
Know the instruments, constraints and conditions that can change results.
Monitor
Review activity and do not assume automation is operating as intended.
Reassess
Pause or change a strategy when your objectives or financial position change.
No projection is a promise
Charts, calculator outputs, scenarios and customer opinions are illustrative. They do not establish a probable outcome for your account and should not be treated as personalized financial advice.
Consider independent legal, tax or financial advice when the decision could materially affect your financial situation.