Legal document
Risk Disclosure
Last updated: 22 July 2026
1. Nature of Products
Forex and CFDs are leveraged, over-the-counter derivative products. Small movements in the underlying market can result in disproportionately large movements in the value of your position, both in your favour and against you.
2. Leverage Risk
Leverage of up to 1:1000 offered by Mercato Brokers magnifies both potential profits and potential losses. A small adverse market movement can result in the loss of your entire margin. You should trade only with capital you can afford to lose entirely.
3. Market Volatility
Prices can move rapidly during scheduled economic releases, central-bank decisions, geopolitical events, and periods of low liquidity such as market open, market close, weekends and public holidays, resulting in slippage on entry and exit orders.
4. Execution Risk
Orders are executed at the next available price. Market and stop orders are not guaranteed to fill at the requested price and may be subject to positive or negative slippage. Guaranteed stop-loss orders are only available where explicitly marked as such.
5. Gapping & Weekend Risk
Markets may gap after weekends, holidays or unexpected news. Stop-loss orders may be filled at the first available price after a gap, which may be materially worse than the stop level.
6. Counterparty Risk
You contract directly with Mercato Brokers as your counterparty. Client funds are held in segregated bank accounts to mitigate this risk, but segregation does not guarantee full recovery in the event of insolvency of the firm or its banking partners.
7. Technology Risk
Internet connectivity, mobile networks, third-party platforms, expert advisors, APIs and system outages may affect your ability to place, modify or close orders. You should always have a contingency plan for managing open positions in case of technology failure.
8. Currency Risk
Where trades or account balances are denominated in a currency different from your base currency, fluctuations in exchange rates may affect your profits, losses and margin.
9. Cryptocurrency Risk
Cryptocurrency CFDs are subject to extreme volatility, thin liquidity outside major trading hours, and rapid regulatory change. They are not suitable for every client.
10. Suitability
Leveraged products are not suitable for every investor. You should carefully consider your investment objectives, level of experience and risk appetite, and seek independent financial advice if you are in any doubt.
11. Acknowledgement
By opening an account with Mercato Brokers, you acknowledge that you have read, understood and accepted this Risk Disclosure in full.
Risk Warning. Trading forex and CFDs carries a high level of risk and may not be suitable for all investors. Leverage of up to 1:1000 can work against you as well as for you. You could sustain a loss of some or all of your invested capital and should not invest money you cannot afford to lose.
Jurisdictional Restrictions. Mercato Brokers does not offer services to residents of jurisdictions where such offering would be contrary to local law or regulation, including but not limited to the United States, Canada, Iran, North Korea, Syria, Cuba and any sanctioned territories.
Mercato Brokers Ltd is regulated by the Financial Services Commission of Mauritius as an SEC-2.1B Investment Dealer. Registered office: 18 Bank Street, Ebene, Mauritius. Contact: info@mercatobrokers.com.