Risk disclosure.
Trading derivatives can be rewarding, but it carries substantial risk. Please read this before you open an account or place a trade.
Derivatives are leveraged products
Futures and options are traded on margin — you post a fraction of the contract value to control the full position. That leverage magnifies the effect of every price move. A small move in the underlying can produce a large gain or a large loss relative to the margin you put up.
Losses can exceed the margin held against a position, and you may be required to add funds at short notice. If your balance falls below the margin the exchange requires, open positions can be squared off automatically, which may crystallise a loss.
You can lose money quickly
Markets can move sharply and without warning, including outside the hours you are watching — MCX runs late into the night and GIFT Nifty trades nearly round the clock. Gaps between the previous close and the next open can work against an open position before you can act.
Trade only with capital you can afford to lose. Never trade with money needed for essentials, and size each position to your account rather than to the maximum margin on offer.
Options carry their own risks
When you buy an option, your loss is limited to the premium paid — but an option can expire worthless, losing the entire premium. Time decay works against a bought option as expiry approaches.
Writing (selling) options, where available, carries risk that can be substantially larger than the premium received, and requires margin that can rise as the market moves against the position.
Charges reduce your returns
While SigmaFX charges zero brokerage, every trade still carries statutory charges — STT or CTT, exchange transaction charges, the SEBI turnover fee, stamp duty and GST. These apply whether a trade is profitable or not, and frequent trading increases their cumulative effect. See the full breakdown on the pricing page.
No investment advice
SigmaFX provides an execution platform and tools. Nothing on this site or in the platform — prices, contract specifications, educational material or examples — is investment advice, a recommendation, or an assurance of any outcome. Figures shown in illustrations are for explanation only.
Decisions to trade, and their consequences, are yours. Consider taking independent financial advice suited to your circumstances before trading derivatives, and make sure you understand each contract before you take it on.
Past performance is not indicative
Past performance of any market, instrument or strategy is not a reliable indicator of future results. Market data and examples are provided for information only and may be delayed or representative.
This disclosure is a summary of key risks and is not exhaustive. It does not replace the risk disclosure documents and terms you accept when opening an account. If anything here is unclear, ask us before you trade.
Understand it first.
New to derivatives? Our plain-English guide walks through futures, options, margin and expiry.