Trader Risks

Derivatives traders not only have to deal with financial risks as part of the contracts, but they are also exposed to technical risks and malicious attacks from the other side of the market:

• Liquidation: when your balance is reduced close to zero, your position will be liquidated.

• Lack of transparency: you can be cheated by your derivative exchange, as the settlement price is controlled by the exchange itself.

• Price manipulation: whales, sharks, and malicious attackers can manipulate the index prices (even in a short time), forcing your positions to be liquidated.