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EXPERT STOCKSCONSULTANCY
Statutory Disclosure

Risk Disclosure

Understand the market volatility, derivative trading risks, and execution limitations before participating in Indian financial markets.

DOCUMENT VERSION:V1.0
EFFECTIVE:01 January 2026
LAST REVIEWED:01 January 2026

Statutory Warning · Capital Risk Acknowledgment

Trading and investing in the Indian securities market (NSE, BSE, MCX) involves substantial risk of capital loss. Prior to executing transactions or subscribing to research publications, you must thoroughly evaluate your financial situation and risk tolerance.

Mandatory disclosure under SEBI (Research Analysts) Regulations, 2014.

01Equity Market Dynamics

Market Volatility & Capital Loss

Security prices fluctuate continually based on macroeconomic conditions, corporate earnings, central bank interest rate policies, domestic inflation metrics, and unforeseen global geopolitical events.

Downside Principle

An investment can decline in value substantially. Historical price patterns, backtests, and technical setups do not guarantee future performance.

Risk Capital Rule

You should only commit risk capital that you can afford to lose completely without compromising your day-to-day liquidity, emergency reserves, or living standard.

02High-Risk Derivatives Segment

Derivative Trading Risks (Futures & Options)

Exchange-traded index and equity derivatives possess structural operational characteristics that entail heightened financial risk:

Leverage Risk

Futures and options contracts require initial margin that is a small fraction of total contract value. Leverage magnifies both gains and downside losses equally.

Time Decay (Theta)

Option buyers face non-linear time decay that accelerates rapidly toward weekly and monthly expiry dates, eroding premium even in sideways markets.

Capital Loss

Out-of-the-money (OTM) options can expire completely worthless at settlement, resulting in a total 100% loss of the premium paid.

Official SEBI Analytical Study Notice on Equity F&O Traders
▪9 out of 10 individual traders in the equity F&O segment incurred net financial losses.
▪On average, loss-makers registered net trading losses close to ₹50,000 per year.
▪Active traders incurred an additional 15% to 28% of net trading losses in transactional and advisory overheads.
03Execution Reality

Stop-Loss & Slippage Limitations

Reference stop-loss levels, invalidation thresholds, and price targets provided in research publications are theoretical directional markers.

During periods of extreme market volatility, overnight macroeconomic announcements, market gap openings, or diminished liquidity, exchange matching engines may execute orders materially different from theoretical reference levels (slippage).

Stop-loss trigger orders turn into market orders once triggered and execute at whatever best available quote the exchange order book provides.

Exchange Execution Gap Model
EXPECTED STOP LEVEL₹25,200.00
Market Opening Gap (-1.2%)
ACTUAL FILL (SLIPPAGE)₹24,898.00
Exchange trades occurred across gap; fill price was below intended stop reference.