Risk Disclosure Statement by Capitalista
At Capitalista, we value transparency and want our clients to be aware of potential risks. This document explains the risks associated with using our simulated trading environment. It’s important to know these risks before you start trading. By using our services, you confirm that you have read and understood these risks.
Simulated Trading Environment
Capitalista offers a simulated trading space that aims to closely mimic real market conditions. However, it’s essential to understand that trading in a simulated environment is different from trading in a live market in several important ways.
Market Fluctuations
Simulated trading involves market fluctuations, which means the prices of securities can change. These changes can be influenced by various factors like economic news, market feelings, and world events. While we strive to reflect real market conditions, the results in simulated trading might not match those in live trading due to differences in market depth, liquidity, and execution speed.
Order Execution
Orders placed in the simulated environment might not always be filled at the prices shown. Capitalista works to replicate real market executions, but discrepancies can happen due to technical limitations or different market behavior. In live trading, factors like slippage, order rejections, and partial fills can affect execution, which may not be fully represented in a simulated environment.
Emotions and Decision-Making
Simulated trading does not capture all the emotions and mental challenges that come with live trading. Without real financial risk, you might make different decisions. Clients may feel overconfident, take excessive risks, or act without discipline in a simulated environment, which can be very different from their behavior when real money is at stake.
Technology Considerations
Capitalista’s simulated trading platform relies on advanced technology, including software and internet connections. You may experience technical issues like system failures or connectivity problems that could impact your trading experience. While we aim to keep our platform reliable, these technological risks are a part of using it.
Market Access Differences
Capitalista provides access to various simulated markets and instruments. However, the availability and conditions of these markets may differ from live markets. Factors like trading hours, liquidity, and market dynamics can vary, which can affect how comparable the results of simulated trading are to live trading.
Clarity on Features
It’s important for clients to fully understand the features and limitations of Capitalista’s simulated trading platform. Misunderstanding how it works or misinterpreting the results can lead to unrealistic expectations or poor trading strategies when moving to live trading.
No Future Guarantees
Past performance in the simulated trading environment does not guarantee future results in live trading. Success in simulated trading does not ensure success in live trading due to the differences highlighted in this document.
Engaging in simulated trading with Capitalista involves risks that clients should carefully consider. It’s crucial to use the simulated trading environment as a learning tool rather than a predictor of future success in live trading. We encourage clients to research thoroughly, develop sound trading strategies, and understand their risk tolerance before transitioning to live trading.
By using Capitalista’s services, you acknowledge that you have read and understood this risk disclosure and accept the risks associated with simulated trading.