Mexem Africa (Pty) Ltd(“Mexem”) offers various types of investments through the acquisition of various financial instruments including: shares, options, futures contracts, options, bonds, options, contracts, individual share contracts, ETFs, structured products and mutual funds. Investments and trading involve risksrelating to the invested capital, and therefore require skill, knowledge and understanding of risks before making any investment and trading decisions. Products made available by Mexemare not suitable for everyone and it is recommended that professional financial advice is obtained before making such decisions.

Before deciding on investing or trading with Mexem, you must consider your investment and/ or trading goals, your level of experience, and your ability to absorb losses by analysing your financial position. In addition, you should consider that past performance must not be a measure of the future performance of financial instruments.

Derivatives involve risk and are not suitable for all investors. Before investing in derivatives, you should be aware of all the risks involved. Derivatives make use of leverage and gains and losses may be amplified. Please refer to the risks below that may be experienced when trading in certain financial instruments such as derivatives (including: options, futures, CFDs and more), forex, short-selling and more. Please review the product list of the broker (interactive Brokers LLC) for a full list of products available.

Leverage

Leverage can be utilized in various ways within many different types of financial products; however, it essentially means that money is borrowed for certain trading activities and repaid at a later date while accruing interest. This increase volatility leading to potential returns and losses being amplified.

Trading on margin may require minimum equity to be maintained. It is solely your responsibility for maintaining this. Margin calls may be issued in the event of reaching your maintenance margin whereby you will be required to deposit funds at short notice, and if not, positions may be closed in order to adhere to the margin requirements of the broker.

Trading on margin is only for sophisticated investors with high-risk tolerance. You may lose more than your initial investment. Trading on margin also carries additional costs such as interest accruing at the rate applicable to the broker. The amount you may lose may be greater than your initial investment.

Short-selling

If the price of the underlying instrument increases, the investor may be exposed to significant losses in the event of short-selling. You may lose more than your initial investment.

Liquidity

Different financial products carry a different level of liquidity in the markets they are traded. Investors can experience delays in closing or opening positions due to illiquidity which can cause for sub-optimal prices to be achieved which can increase losses or decrease profits.

Currency

An investor can purchase financial instruments in a different currency. The investor can also trade in currencies. Making use of any currency other than your base currency can result in risk due to exchange rate movements which can move in your favour as well as out of your favour which can increase losses or reduce profits.

The risks mentioned above are not exhaustive. Each trading instrument carries different risk characteristics and it is solely your responsibility to ensure you understand the risks involved before making and investment and trading decisions.

“Interactive Brokers LLC” is a registered Broker-Dealer, Futures Commission Merchant and Forex Dealer Member, regulated by the U.S. Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), and is a member of the Financial Industry Regulatory Authority (FINRA) and several other self-regulatory organizations.  Interactive Brokers does not endorse or recommend any financial institutions or financial service providers, including brokers, introducing brokers, third-party financial advisors, or hedge funds.  Interactive Brokers provides execution and clearing services to customers.  None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers makes no representation and assumes no liability for the accuracy or completeness of the information provided on this website