Trading Execution Risks
AXIORY group of companies (“Axiory”) as the company providing Investment
Services to the Client in relation to Financial Instruments, issued these Trading
Execution Risks on provision of Investment Services in relation to Financial
Instruments (“Trading Execution Risks”).

SLIPPAGE
Axiory aims to provide clients with the best platform bridging pricing available andto get all orders filled at the requested rate. However, there are times when, due toan increase in volatility or volume, orders may be subject to slippage. This mostcommonly occurs during fundamental news events.
The volatility in the market may create conditions where orders are difficult toexecute, since the price might be many pips away due to the extreme market
movement. Although the trader is looking to execute at a certain price, the market
may have moved significantly and the order would be filled at the next best price or
the fair market value. Similarly, increased volume may also result in slippage if
sufficient liquidity does not exist to execute all trades at the requested rate.
The concept of slippage is not unique to the forex market, as it often occurs in theequities and futures markets. It is important to note that the “At Market Points”
feature on the Axiory trading platform allows traders to control the amount ofpotential slippage they are willing to accept on a market order. Zero indicates noslippage is permitted. When zero is selected, the trader is requesting his order may
be executed only at the exact price requested, or not executed at all. If the trader
elects to accept a range of permissible slippage to raise the probability of having hisorder executed, the order will be filled at the best price available within thespecified range. For instance, a client may indicate that he is willing to be filled
within 2 pips of his requested order. The system would then fill the client within theacceptable range (in this instance, 2 pips) if the market has moved quickly throughthe price at which the order was entered. If the order cannot be filled within that
permissible range, the order will be rejected.
Once a stop is triggered, it becomes an At Best market order, and there is noguarantee it will be filled at any particular given price. Therefore, stop orders may
incur slippage depending on market conditions.
Axiory has obtained close banking relationships with some of the world’s largest andmost aggressive price providers. Having multiple price providers is especiallyimportant in volatile markets, when one or two banks may post wide spreads, orsimply avoid quoting any price at all. With so many major banks quoting prices toAxiory, there are competitive spreads and fills, even during market-moving news
events.

DELAYS IN EXECUTION
A delay in execution may occur for various reasons, such as technical issues with thetrader’s internet connection to the Axiory servers, which may result in hanging
orders. The Axiory trading platform on a trader’s computer may not be maintaining
a constant connection with the Axiory servers due to a lack of signal strength from awireless or dialup connection. A disturbance in the connection path can sometimes
interrupt the signal, and disable the Trading Station, causing delays in transmissionof data between the trader’s Axiory trading platform and the Axiory server. One way
to check your internet connection with Axiory’s server is to ping the server from yourcomputer.

RESET ORDERS
Market volatility creates conditions that make it difficult to execute orders at thegiven price due to an extremely high volume of orders. By the time orders are able
to be executed, the bid/ask price at which a counterparty is willing to take a position
may be several pips away.
In cases where the liquidity pool is not large enough to fill a Market Range order,
the order will be rejected. For Limit Entry or Limit Orders, the order would berejected and reset until the order can be filled. Axiory offers the At Best order type
for traders who wish to avoid this situation.

WIDENED SPREADS
Axiory strives to provide traders with tight, competitive spreads; however, there may
be instances when spreads widen beyond the typical spread. During news events
spreads may widen substantially in order to compensate for the tremendous amountof volatility in the market. The widened spreads may only last a few seconds or as
long as a few minutes. Axiory strongly encourages traders to utilize caution when
trading around news events and always be aware of their account equity, usable
margin and market exposure. Widened spreads can adversely affect all positions inan account.

HANGING ORDERS

During periods of high volume, hanging orders may occur. This is a condition wherean order sits in the “orders” window after it has been executed. The order will behighlighted in red, and the Status column will indicate “executed” or “processing.”
Generally, the order has been executed, but it is simply taking a few moments for it
to be confirmed by the banks. During periods of heavy trading volume, it is possiblethat a queue of orders will form. That increase in incoming orders may sometimes
create conditions where there is a delay from the banks in confirming certain orders.
Depending upon the type of order placed, outcomes may vary. If this is a Market
Range order and the order cannot be filled within the specified range, or if the delay
has passed, the order will be rejected. If it is an At Best order, every attempt will bemade to fill the order at the next best available price in the market. In bothsituations, the “status” column in the “orders” window will typically indicate“executed” or “processing.” The trade will simply take a few moments to move tothe “open positions” window. Depending upon the order type, the position may infact have been executed, and the delay is simply due to heavy internet traffic.
Keep in mind that it is only necessary to enter any order once. Multiple entries forthe same order may slow or lock your computer or inadvertently open unwanted
positions.
If at any time you are unable to access the Axiory trading platform to manage youraccount, you may call the us directly at +1 888 740 8895 orvisit https://axiory.com/support-and-contact/ for contact information.

GRAYED OUT PRICING
Axiory does not intentionally “gray out” prices; however, this is a condition that
occurs when liquidity decreases, and market makers that provide pricing to Axiory
are not actively making a market for particular currency pairs. At times, a severe
increase in the difference of the spread may occur due to a loss of connectivity witha bank or due to an announcement that has a dramatic effect on the market thatdries out liquidity. Such graying out of prices or increased spreads may result inmargin calls on a trader’s account. When an order is placed on a currency pairaffected by grayed out prices, the P/L will temporarily flash to zero until the pair has
a tradable price and the system can calculate the P/L balance.

INVERTED SPREADS
When utilizing Axiory technology, you are trading on feeds that are being provided
by multiple top-tier banks and financial institutions. Unfortunately, online trading
technology is not perfect and, in rare cases, this feed can be disrupted. This may
only last for a moment, but when it does, spreads often become inverted. During

these rare occasions, Axiory advises that clients avoid placing At Best orders. While
it may be tempting to place a “free trade,” keep in mind that the prices are not real
and your actual fill may be many pips away from the displayed price. In the eventthat trades are executed at rates not actually offered by Axiory’s banks and financial
institutions, Axiory reserves the right to reverse such trades, as they are notconsidered valid trades. Keep in mind these instances are usually rare, and byplacing Market Range orders or not trading during these moments, traders canavoid the risk associated with the above scenarios.

TRADING DESK HOURS
Dealing hours generally are from Sunday 5:15 PM (EST) through Friday 4:00 PM(EST). The open or close times may be altered by the Trading Desk because it relies
on prices being offered by banks and financial institutions that provide liquidity forAxiory.
Outside of these hours, most of the major world banks and financial centers areclosed. The lack of liquidity and volume during the weekend impedes execution andprice delivery.

PRICES UPDATING BEFORE THE OPEN
Shortly prior to the open, the Trading Desk refreshes rates to reflect current market
pricing in preparation for the open. At this time, trades and orders held over theweekend are subject to execution. Quotes during this time are not executable fornew market orders. After the open, traders may place new trades, and cancel ormodify existing orders.

LIQUIDITY
Please be aware that during the first few hours after the open, the market tends tobe thinner than usual until the Tokyo and London market sessions begin. Thesethinner markets may result in wider spreads, as there are fewer buyers and sellers.
This is largely due to the fact that for the first few hours after the open, it is still theweekend in most of the world.

GAPPING
Sunday’s opening prices may or may not be the same as Friday’s closing prices. Attimes, the prices on the Sunday open are near where the prices were on the Fridayclose. At other times, there may be a significant difference between Friday’s closeand Sunday’s open. The market may gap if there is a significant news announcement
or an economic event changing how the market views the value of a currency.
Traders holding positions or orders over the weekend should be fully comfortablewith the potential of the market to gap. One of the great things about trading at
Axiory is that outside of announced major holidays, the trading hours routinely close
only once a week on the weekends, which corresponds with the hours of majorbanks and financial institutions. In contrast, most stock exchanges close five times
each week, and can gap significantly on each day’s open.

ORDER EXECUTION
Limit orders are often filled at the requested price. If the price requested is notavailable in the market, the order will not be filled. If the requested price of a stoporder is reached at the open of the market on Sunday, the order will become amarket order. Limit Entry (LE) orders are filled the same way as limit orders. Stop
Entry (SE) orders are filled the same way as stops.

WEEKEND RISK
Traders who fear that the markets may be extremely volatile over the weekend, thatgapping may occur, or that the potential for weekend risk is not appropriate for theirtrading style, may simply close out orders and positions ahead of the weekend.

MARGIN CALLS
The idea of margin trading is that your margin acts as a good faith deposit to secure
the larger notional value of your position. Margin trading allows traders to hold aposition much larger than the actual account value. Axiory’s online trading platform
has margin management capabilities, which allow for this high leverage. Of course,
trading on margin comes with risk, since high leverage may work against you asmuch as it works for you. If account equity falls below margin requirements, theAxiory trading platform will trigger an order to close all open positions. When
positions have been over-leveraged or trading losses are incurred to the point that
insufficient equity exists to maintain current open positions, a margin call will result,and open positions must be liquidated.
Please keep in mind that when the account’s useable margin reaches zero, all open
positions are triggered to close. The margin-call process is entirely electronic, andthere is no discretion on Axiory’s part as to the order in which trades are closed.
Such discretion would require Axiory to actively monitor positions and accounts.

Example: A trader has $10,000 in a standard account and his margin requirement is
1% (i.e., he has leverage of 100:1). For each position he opens (each position = 1 lot= 100,000 notional value), he is required to set aside $1000 in used margin. If heopens two positions, his required margin is $2000. The trader can lose up to $8000
before he starts dipping into his margin requirement. When his account equity
reaches $2000, a margin call is triggered and all positions will be closed.
The margin requirements are generally $1,000 per lot for Standard accounts (lot sizeof 100,000). It is strongly advised that clients maintain the appropriate amount ofmargin in their accounts at all times. Margin requirements may be changed basedon account size, simultaneous open positions, trading style, market conditions, andat the discretion of Axiory.

CHART PRICING VS. PRICES DISPLAYED ON THE
PLATFORM
It is important to make a distinction between indicative prices (displayed on charts)and deal-able prices (displayed on the Trading Station). Indicative quotes are thosethat offer an indication of the prices in the market, and the rate at which they arechanging. Market watchers, such as S&P and eSignal, compile indicative quotes as aproxy for the market’s actual movement. These prices are derived from a host ofcontributors such as banks and clearing firms, which may or may not reflect where
Axiory’s liquidity providers are making prices. Indicative prices are usually very close
to dealing prices. Indicative quotes only give an indication of where the market is.
Equity and futures traders dealing through a broker will see indicative quotes.
Executable quotes ensure finer execution and thus a reduced transaction cost.
Equity and futures traders are used to prices being the same at any given time,
regardless of which firm they are trading through or which charting provider they areusing and they often assume the same holds true for spot forex. Because the rolling
spot forex market is decentralized meaning it lacks a single central exchange whereall transactions are conducted each forex dealer (market maker) may quote slightlydifferent prices. Therefore, any prices displayed by a third party charting provider,which does not employ the market maker’s price feed, will reflect “indicative” prices
and not necessarily actual “dealing” prices where trades can be executed.