Bright Trading, LLC. Risk Disclosure for
Professional Securities Trading
Association with Bright Trading, LLC. is limited to Professional
Traders.
The firm does not solicit nor accept retail orders from Retail
Customers.
All Bright Traders must have successfully completed the Series 7
General Securities Representative qualification examination.
Traders that join Bright Trading become Class B members of the
company, and are not customers of Bright Trading. Traders and their
capital contributions and accumulated profits are at a risk for loss
and any loss is not provided with coverage through the Securities
Investor Protection Corporation (SIPC).
Trading can be extremely risky.
Trading generally is not appropriate for someone of limited
resources and limited investment or Trading experience and low risk
tolerance. You should be prepared to lose all of the funds that you
use for Trading. In particular, you should not fund -Trading
activities with retirement savings, student loans, second mortgages,
emergency funds, funds set aside for purposes such as education or
home ownership, or funds required to meet your living expenses
Be cautious of claims of large profits from Trading. You should be
wary of advertisements or other statements that emphasize the
potential for large profits in Trading. Trading can also lead to
large and immediate financial losses.
Trading requires knowledge of securities markets. Trading requires
in-depth knowledge of the securities markets and Trading techniques
and strategies. In attempting to profit through Trading, you must
compete with other professional, licensed traders employed by
securities firms. You should have appropriate experience before
engaging in Trading.
Trading requires knowledge of a firm’s operations. You should be
familiar with a securities firm’s business practices, including the
operation of the firm’s order execution systems and procedures.
Under certain market conditions, you may find it difficult or
impossible to liquidate a position quickly at a reasonable price.
This can occur, for example, when the market for a stock suddenly
drops, or if Trading is halted due to recent news events or unusual
Trading activity. The more volatile a stock is, the greater the
likelihood that problems may be encountered in executing a
transaction. In addition to normal market risks, you may experience
losses due to systems failures.
Trading may result in your paying large commissions. Trading may
require you to trade your account aggressively, and you may pay
commissions on each trade. The total daily commissions that you
pay on your trades may add to your losses or significantly reduce
your earnings.
Trading on margin or short selling may result in losses beyond your
initial investment. When you trade with funds borrowed from a firm
or someone else, you can lose more than the funds you originally
placed at risk. A decline in the value of the securities that are
purchased may require you to provide additional funds to the firm to
avoid the forced sale of those securities or other securities in
your account. Short selling as part of your -Trading strategy also
may lead to extraordinary losses, because you may have to purchase a
stock at a very high price in order to cover a short position.