Trading Risk

(1) Price Fluctuation Risk

Fluctuations in index price may cause a loss. In addition, since the price of Click Kabu 365 is not a stock index itself, customers may not be able to trade at expected prices and suffer an unexpected loss by expansion price of divergence from supply and demand relationship, market condition .Since the transaction amount is much larger than the deposited exchange margin, a loss may occur exceeding the deposited exchange margin, depending on market conditions.

(2) Credit Risk

TFX has introduced the clearing system under which it acts as a counterparty to a TFX Trading Member in Click Kabu 365 and TFX segregates all daily future margin deposited by Customer; therefore, all deposited margins are in principle protected. Provided, however, that non-payments by a TFX Trading Member etc., due to changes in credit status or bankruptcy of a TFX Trading Member etc., may cause delays in completing refund procedures or unexpected loss.

(3) System Failure Risk

If a failure occurs in the system of TFX or a TFX Trading Member, or communication network system among Customers, TFX Trading Members and TFX, delivery of market information, etc, placement of order or execution thereof may be delayed or become impossible, and as a result, an unexpected loss may be caused.

(4) Risks of changes in tax systems, laws, etc.

Changes in tax systems, laws or interpretation may cause unfavorable results.

(5) Interest Rate Fluctuation Risk

Fluctuations in the interest rate of Japanese Yen may decrease the interest receivable of Click Kabu 365, or increase the interest payable.

(6) Liquidity Risk

TFX has introduced the Market-Making Method for Click 365 , in which Market Maker offers ask and bid prices at which Customers may execute a transaction. It may become difficult or impossible for Market Maker to provide the ask and bid prices in a stable and sustainable manner, depending on certain conditions such as acts of God, war, political change or change in foreign exchange policies or in laws and rules of the relevant country, sharp fluctuations in the currency market, etc., and as a result, Customers may not be able to trade at expected prices and suffer an unexpected loss there from.
In addition, even under normal conditions, transactions in the indices with lower liquidity may cause a loss to Customer due to causes such that Customer is not able to execute a transaction at the desired price.

(7) Foreign exchange risk

I investors do not bear the foreign exchange risks from overseas stock index Daily Futures trading, because the market makers, provide the ask and bid prices, taking into account the foreign exchange risk on their pare quote, spread may become wide depending on the foreign exchange market and as a result, Customers may not be able to trade at expected prices and suffer an unexpected loss there from.

(8) Risk of expected the divident

TFX calculate the dividend of Click Kabu 365, based on the expected dividend of the last day of the index constituent stocks, as influence value on the theory which gives the value of the subsequent stock index. Therefore the dividend of Click Kabu 365 is not the same as the value calculating by actual dividend and as the expected/actual dividend of index component stocks.