CFTC RULE 4.41
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY, SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. SEE FURTHER DETAILS BELOW FOR ADDITIONAL IMPORTANT INFORMATION.
LINDA AND DAMON TRADE (“COMPANY”) PROVIDES AN EDUCATIONAL SERVICE FOR INDIVIDUALS AND ENTITIES (“CUSTOMERS”) WHO HAVE PREVIOUSLY MADE AN INDEPENDENT DECISION TO ENGAGE IN ELECTRONIC TRADING. NEITHER THE COMPANY NOR ITS MANAGERS OR EMPLOYEES ARE ACTING IN THE POSITION OF AN INVESTMENT ADVISOR, INVESTMENT MANAGER, OR COMMODITIES TRADING ADVISOR (CTA), NOR DOES THE COMPANY, ITS MANAGERS, OR EMPLOYEES RECOMMEND CUSTOMERS ENGAGE IN ELECTRONIC TRADING.
IT SHOULD NOT BE ASSUMED THAT THE METHODS, TECHNIQUES, OR INDICATORS PRESENTED IN THE COMPANY’S PRODUCTS OR SERVICES WILL BE PROFITABLE, OR THAT THEY WILL NOT RESULT IN LOSSES. PAST RESULTS OF ANY INDIVIDUAL TRADER OR TRADING METHOD PROVIDED BY THE COMPANY ARE NOT INDICATIVE OF FUTURE RETURNS BY THAT TRADER OR METHOD AND ARE NOT INDICATIVE OF FUTURE RETURNS THAT MAY BE REALIZED BY YOU.
IN ADDITION, THE INDICATORS, STRATEGIES, ARTICLES, AND ALL OTHER FEATURES OF THE COMPANY’S PRODUCTS (COLLECTIVELY, THE “INFORMATION”) ARE PROVIDED FOR INFORMATIONAL AND EDUCATIONAL PURPOSES ONLY. SUCH SET-UPS ARE NOT SOLICITATIONS OF ANY ORDER TO BUY OR SELL. ACCORDINGLY, YOU SHOULD NOT RELY SOLELY ON THE INFORMATION IN MAKING ANY TRADE OR INVESTMENT. RATHER YOU SHOULD USE THE INFORMATION ONLY AS A STARTING POINT FOR DOING ADDITIONAL INDEPENDENT RESEARCH IN ORDER TO ALLOW YOU TO FORM YOUR OWN OPINION REGARDING TRADES OR INVESTMENTS.
TO THE EXTENT THAT THE COMPANY OR ITS INSTRUCTORS NARRATE TO ACTUAL TRADES MADE, SUCH NARRATION IS INTENDED FOR DEMONSTRATION ONLY AND IS NOT A RECOMMENDATION FOR THE CUSTOMER TO PURCHASE OR SELL SIMILARLY.
COMMODITIES AND FUTURES
THE RISK OF LOSS IN TRADING COMMODITIES CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION. IN CONSIDERING WHETHER TO TRADE OR TO AUTHORIZE SOMEONE ELSE TO TRADE FOR YOU, YOU SHOULD BE AWARE OF THE FOLLOWING:
(1) IF YOU PURCHASE A COMMODITY OPTION, YOU MAY SUSTAIN A TOTAL LOSS OF THE PREMIUM AND OF ALL TRANSACTION COSTS.
(2) IF YOU PURCHASE OR SELL A COMMODITY FUTURE OR SELL A COMMODITY OPTION, YOU MAY SUSTAIN A TOTAL LOSS OF THE INITIAL MARGIN FUNDS AND ANY ADDITIONAL FUNDS THAT YOU DEPOSIT WITH YOUR BROKER TO ESTABLISH OR MAINTAIN YOUR POSITION. IF THE MARKET MOVES AGAINST YOUR POSITION, YOU MAY BE CALLED UPON BY YOUR BROKER TO DEPOSIT A SUBSTANTIAL AMOUNT OF ADDITIONAL MARGIN FUNDS, ON SHORT NOTICE, IN ORDER TO MAINTAIN YOUR POSITION. IF YOU DO NOT PROVIDE THE REQUIRED FUNDS WITHIN THE PRESCRIBED TIME, YOUR POSITION MAY BE LIQUIDATED AT A LOSS, AND YOU WILL BE LIABLE FOR ANY RESULTING DEFICIT IN YOUR ACCOUNT.
(3) UNDER CERTAIN MARKET CONDITIONS, YOU MAY FIND IT DIFFICULT OR IMPOSSIBLE TO LIQUIDATE A POSITION. THIS CAN OCCUR, FOR EXAMPLE, WHEN THE MARKET MAKES A “LIMIT MOVE.”
(4) THE PLACEMENT OF CONTINGENT ORDERS BY YOU OR YOUR TRADING ADVISOR, SUCH AS A “STOP-LOSS” OR “STOP-LIMIT” ORDER, WILL NOT NECESSARILY LIMIT YOUR LOSSES TO THE INTENDED AMOUNTS, SINCE MARKET CONDITIONS MAY MAKE IT IMPOSSIBLE TO EXECUTE SUCH ORDERS.
(5) A “SPREAD” POSITION MAY NOT BE LESS RISKY THAN A SIMPLE “LONG” OR “SHORT” POSITION.
(6) THE HIGH DEGREE OF LEVERAGE THAT IS OFTEN OBTAINABLE IN COMMODITY TRADING CAN WORK AGAINST YOU AS WELL AS FOR YOU. THE USE OF LEVERAGE CAN LEAD TO LARGE LOSSES AS WELL AS GAINS. IN SOME CASES, MANAGED COMMODITY ACCOUNTS ARE SUBJECT TO SUBSTANTIAL CHARGES FOR MANAGEMENT AND ADVISORY FEES. IT MAY BE NECESSARY FOR THOSE ACCOUNTS THAT ARE SUBJECT TO THESE CHARGES TO MAKE SUBSTANTIAL TRADING PROFITS TO AVOID DEPLETION OR EXHAUSTION OF THEIR ASSETS.
THIS BRIEF STATEMENT CANNOT DISCLOSE ALL THE RISKS AND OTHER SIGNIFICANT ASPECTS OF THE COMMODITY MARKETS. YOU SHOULD THEREFORE CAREFULLY STUDY COMMODITY TRADING BEFORE YOU TRADE.
TRANSACTIONS ON MARKETS LOCATED OUTSIDE THE UNITED STATES, INCLUDING MARKETS FORMALLY LINKED TO A UNITED STATES MARKET MAY BE SUBJECT TO REGULATIONS WHICH OFFER DIFFERENT OR DIMINISHED PROTECTION. FURTHER, UNITED STATES REGULATORY AUTHORITIES MAY BE UNABLE TO COMPEL THE ENFORCEMENT OF THE RULES OF REGULATORY AUTHORITIES OR MARKETS IN NON-UNITED STATES JURISDICTIONS WHERE YOUR TRANSACTIONS MAY BE AFFECTED. BEFORE YOU TRADE YOU SHOULD INQUIRE ABOUT ANY RULES RELEVANT TO YOUR CONTEMPLATED TRANSACTIONS AND ASK THE FIRM WITH WHICH YOU INTEND TO TRADE FOR DETAILS ABOUT THE TYPES OF REDRESS AVAILABLE IN BOTH YOUR LOCAL AND OTHER RELEVANT JURISDICTIONS.
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.
THE RISK OF LOSS IN ELECTRONIC TRADING CAN BE SUBSTANTIAL. BY SIGNING THIS AGREEMENT, CUSTOMER ACKNOWLEDGES THAT HE ASSUMES ALL RISKS AND LIABILITIES RELATED TO THIS TYPE OF INVESTING. CUSTOMER SHOULD BE AWARE.
THAT DAY TRADING CAN BE EXTREMELY RISKY. CUSTOMER SHOULD BE PREPARED TO LOSE ALL OF THE FUNDS THAT THEY USE FOR DAY TRADING. THEY SHOULD NOT FUND THEIR DAY 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 FOR CURRENT INCOME.
THAT CUSTOMER SHOULD BE CAUTIOUS OF CLAIMS OF LARGE PROFITS FROM DAY TRADING. CUSTOMER NEEDS TO BE WARY OF ADVERTISEMENTS OR OTHER STATEMENTS THAT EMPHASIZE THE POTENTIAL FOR LARGE PROFITS IN DAY TRADING. DAY TRADING CAN ALSO LEAD TO LARGE AND IMMEDIATE FINANCIAL LOSSES.
THAT DAY TRADING REQUIRES KNOWLEDGE OF SECURITIES & FUTURES MARKETS. DAY TRADING REQUIRES IN-DEPTH KNOWLEDGE OF THE SECURITIES AND FUTURES MARKETS AND TRADING TECHNIQUES AND STRATEGIES. IN ATTEMPTING TO PROFIT THROUGH DAY TRADING, AN INVESTOR MUST COMPETE WITH PROFESSIONAL, LICENSED TRADERS EMPLOYED BY SECURITIES AND FUTURES FIRMS. AN INVESTOR SHOULD HAVE APPROPRIATE EXPERIENCE BEFORE ENGAGING IN DAY TRADING.
THAT DAY TRADING REQUIRES KNOWLEDGE OF A FIRM’S OPERATIONS. AN INVESTOR SHOULD BE FAMILIAR WITH A SECURITIES FIRM’S BUSINESS PRACTICES, INCLUDING THE OPERATION OF THE FIRM’S ORDER EXECUTION SYSTEMS, PROCEDURES, AND SHOULD CONFIRM THAT A FIRM HAS ADEQUATE SYSTEMS CAPACITY TO PERMIT CUSTOMERS TO ENGAGE IN DAY TRADING ACTIVITIES.
THAT DAY TRADING MAY RESULT IN LARGE COMMISSIONS. DAY TRADING MAY REQUIRE AN INVESTOR TO TRADE HIS OR HER ACCOUNT AGGRESSIVELY AND PAY COMMISSIONS ON EACH TRADE. THE TOTAL DAILY COMMISSIONS THAT THEY PAY ON TRADES MAY ADD TO LOSSES OR SIGNIFICANTLY REDUCE EARNINGS.
THAT DAY TRADING ON MARGIN OR SHORT SELLING MAY RESULT IN LOSSES BEYOND THE INITIAL INVESTMENT. WHEN CUSTOMERS DAY TRADE WITH FUNDS BORROWED FROM THE FIRM OR SOMEONE ELSE, THEY CAN LOSE MORE THAN THE FUNDS ORIGINALLY PLACED AT RISK. A DECLINE IN THE VALUE OF THE SECURITIES THAT ARE PURCHASED MAY REQUIRE ADDITIONAL FUNDS BE PAID TO THE FIRM TO AVOID THE FORCED SALE OF THOSE SECURITIES OR OTHER SECURITIES IN AN INVESTOR’S ACCOUNT. SHORT SELLING AS PART OF DAY TRADING STRATEGY ALSO MAY LEAD TO EXTRAORDINARY LOSSES, BECAUSE STOCK MAY HAVE TO BE PURCHASED AT A VERY HIGH PRICE IN ORDER TO COVER A SHORT POSITION.
Protecting Your Confidential Information
We do not disclose any nonpublic personal information about our customers to anyone, except as required or permitted by law. LINDA AND DAMON TRADE does not sell personal information obtained about you to companies that are not associated with Linda and Damon Trade for the purpose of marketing their products or services to you.
Collection and Use of Personal Information
• Information we receive from you on account applications or other forms, such as name, address, federal tax identification number, income, assets and similar information. We use this information to administrate the accounts we maintain on your behalf, process transactions requested by you, respond to your inquiries, evaluate your investment needs, and identify other products and services that may interest you.
• Information about your transactions with us or our affiliates, such as your account balance transaction history and payment activity. This information is used to process transactions you request and ensure the accuracy of the records and reports we maintain that relate to your account. We may also collect various other types of data, such as transaction, site navigation and optional survey information, in connection with your use of online services we make available to you, either directly or through other entities. We use this information in order to improve the quality of the services we offer you.
• Information we receive from consumer reporting agencies, such as credit relationships and credit history. We use this information to help determine your eligibility for Linda and Damon Trade products and services, collect or report debts owed to us, and protect our rights and property.
Sharing of Information within Linda and Damon Trade
The information we collect relating to your transaction and experiences with Linda and Damon Trade or any affiliate may be shared among Linda and Damon Trade affiliates. We may also share some or all of the information we receive about you from consumer reporting agencies, such as credit Information.
Sharing of Information outside Linda and Damon Trade
As permitted by law, we may disclose some or all of the information described above with entities that are not affiliated with Linda and Damon Trade for the purpose of servicing your Linda and Damon Trade accounts, improving our services providing products and services you’ve requested from Linda and Damon Trade, and informing you about products or services available from Linda and Damon Trade that may be of interest to you. Such companies may include:
• Companies that are the source or origin of financial services offered by Linda and Damon Trade, such as banks, securities broker-dealers, mutual fund companies and insurance company, and futures clearing firms or exchanges.
• Nonfinancial companies, such as companies that perform services on our behalf, e.g., check printers, quote vendors, companies that prepare account statements for us, companies that assist us in communicating or marketing our services.
• Others, such as independent contractors or technical system consultants who program our software, government agencies and regulators, consumer reporting agencies, and other outside entities as permitted or required by applicable laws.
Protecting the confidentiality of Your Personal Information
Linda and Damon Trade Policies and Procedures
To Safeguard Customer Records and Information
1. Access to customer records and information is restricted to persons with a “need to know” the information in connection with their respective duties.
2. No customer records or information shall be disclosed outside the form without the prior approval of an officer of the firm or a member of the Compliance department.
3. Customer records and information that are kept in paper form shall be segregated from other firm, records in specific file drawers. No copies shall be made without the prior approval of an officer of the firm or a member of the Compliance department.、
4. Customer records and information that are kept in electronic form shall no be copied without the prior approval of an officer of the firm or a member of the compliance department
5. If a customer opts out of disclosures in accordance with the firm’ s privacy notice, a prominent entry will be made in that customer’s account files to reflect that the customer has opted out. If the firm later intends to disclose nonpublic information about a customer, the officer or member of the compliance department who proposes to authorize the disclosure will check the file to determine whether the customer has opted out, and if so will only allow disclosures consistent with the opt-out.