An investment in derivatives carries a high degree of risk to the investor. This means that, due to fluctuations in value, the investor may not get back the amount he has invested. Additionally, with certain transactions, the investor may not only lose what he has invested at the outset, but may incur an additional liability to pay further unspecified amounts at a later date.

The inherent concept of derivatives means that they are not suitable for an investor seeking an income from his investments because the income from such investments may fluctuate in value in money terms. For an investment in an OTC product, which is not a readily realisable investment, it may be difficult to sell or realise the investment and obtain reliable information about its value, or the extent of the risks to which it is exposed.  

The value of investments denominated in foreign currencies may reduce or increase due to changes in the rates of exchange as between different currencies. Derivatives are therefore only suitable for those investors who fully understand the market risks, including the risks inherent in foreign exchange markets, and have previous trading experience. It is advisable to seek independent legal, financial and tax advice prior to investing. 

Investors are dealing with BBY Securities Limited (ABN 92 067 161 755) AFSL 238148 (referred to as BBY) as principal when they invest in financial products offered by eBridge Online Trading. Therefore, investors are exposed to the risk that BBY may not be able to perform its obligations under the derivative at the time they close their derivative position. An investor recourse against BBY is limited by BBY recourse and the amount of BBY actual recovery against the market participants used by BBY to hedge the derivatives it issues to an investor.