Risk Disclosure Policy

1. Introduction

​

This Risk Disclosure Policy explains the key risks associated with trading financial products offered by Scotasay Financial Western Cape (Pty) Ltd (“Scotasay”, “we”, “our”, or “us”). It is designed to ensure that all clients are fully informed of the financial risks they may be exposed to when engaging with leveraged products such as Contracts for Difference (CFDs) and spot foreign exchange (Forex) trading.

Scotasay is authorised and regulated by the Financial Sector Conduct Authority (FSCA) in South Africa, under FSP number 54718.

 

This policy forms part of our commitment to Treating Customers Fairly (TCF) and aims to promote transparency, client awareness, and responsible trading behaviour.

​

2. General Risk Warning

 

Trading leveraged products like CFDs and Forex involves significant risk and may not be suitable for all investors. You should not trade unless you fully understand the risks involved and are able to bear the potential loss of your entire investment. Past performance is not indicative of future results.

​

You may lose more than your initial deposit.

​

3. Key Risks Associated with Trading

 

A. Leverage Risk

 

CFDs and Forex are traded on margin. Leverage can amplify both gains and losses. A small market movement may have a proportionately larger impact on your capital. Excessive leverage can result in rapid and substantial losses.

​

B. Market Volatility Risk

 

Prices in the Forex and CFD markets can be highly volatile and move unpredictably due to economic news, geopolitical events, or other factors. Sudden market movements may cause slippage, widened spreads, or gapping, which may result in orders being executed at unfavourable prices.

​

C. Liquidity Risk

 

Certain market conditions may reduce liquidity, making it difficult to close or open positions. This may lead to adverse price movements and increased trading costs.

​

D. Margin Call and Stop-Out Risk

 

Failure to maintain sufficient margin levels may trigger margin calls or automatic liquidation of your positions (stop-out). You are responsible for monitoring your account and maintaining adequate margin at all times.

​

E. Counterparty Risk

 

Scotasay is your counterparty in CFD and Forex transactions. If Scotasay were to become insolvent, you may not receive the full proceeds of your trades or deposits.

​

F. Technical and Operational Risks

 

Trading relies on internet connectivity and digital infrastructure. Interruptions, delays, or system failures (on your end or ours) may result in delayed or failed executions, which could cause financial loss.

​

G. Regulatory and Jurisdictional Risk

 

Your rights and obligations may vary depending on your jurisdiction. You are responsible for ensuring compliance with local laws before using our services. Scotasay does not accept clients from certain restricted jurisdictions (e.g., the United States, Canada, Japan).

​

H. Emotional and Psychological Risk

 

High-pressure decision-making under financial stress can lead to irrational or emotionally driven trading, potentially resulting in substantial losses. Trading requires discipline and a clear understanding of risk tolerance.

 

Clients can submit complaints through any of the following methods:

​

• Email: info@scotasay.com

• Online: via the Contact Us on our website

 

To help us process your complaint efficiently, please include the following:

​

• Your full name and contact details

• Account number (if applicable)

• A clear description of the issue

• Any relevant documents or evidence

• The resolution you are seeking

​

4. No Guarantee of Profit

 

Scotasay does not guarantee the profitability of any trades or strategies. All trading involves speculation. You should never invest more than you can afford to lose.

​

5. Educational Content and Third-Party Information

 

Any educational material, research, commentary, or analysis provided on our website or platform is for informational purposes only and does not constitute investment advice. We do not guarantee the accuracy or completeness of third-party data or forecasts.

​

6. Client Responsibility

 

It is your responsibility to:

​

 

• Fully understand the financial products before trading;

• Seek independent legal, tax, and financial advice where necessary;

• Assess your own financial situation, investment objectives, and risk appetite.

​​

7. Risk Mitigation Tools

​​

Scotasay may provide tools such as:

 

• Negative balance protection (where applicable);

• Stop-loss and limit orders;

• Risk analytics dashboards;

• Margin alerts or push notifications.

Note: These tools do not eliminate risk and may not always function as intended due to market conditions or technical limitations.

 

8. Changes to This Policy

​

Scotasay reserves the right to update this Risk Policy at any time to reflect changes in our services, legal requirements, or market conditions. Updated versions will be published on our website.

​

9. Contact Us​

 

If you have any questions about this Risk Disclosure Policy or require further clarification, please contact:

​

Scotasay Financial Western Cape (Pty) Ltd
896 Codonia Avenue, Waverley, Gauteng, South Africa
Email: info@scotasay.com