Understanding Your Risks
Solaris Securities would like to inform you of the potential risks of trading online and the inherent risks of trading in an extreme market environment.
When trading online, you should be aware that during periods of high internet traffic, you might experience delays in accessing account data due to systems capacity limitations. Additionally, system response times may be adversely affected by increased market volatility conditions, quote delays, system performance; and other factors outside the control of Solaris Securities, which may include your computer system and internet service provider. You may also experience system outages or delays as a result of, among other things, power failures, programming failures or heavy trading volume. During periods of increased volatility, you might suffer market losses in the price and share volume of a particular stock when systems problems result in an inability to place buy or sell orders. The risk of financial loss in trading online can be substantial; therefore, you should consider whether such trading is suitable for you in light of your circumstances and financial resources.
In the event system capacity problems prevent our automated routing systems from sending your order(s) to designated market centers for execution, we encourage you to contact our Trading Desk for manual handling of your orders. We ask for your patience, during those times, because the Trading Desk will be experiencing heavy call volume. Please keep in mind that Solaris Securities takes significant measures to improve system capacity and reliability; however, you should have an alternate means of trading your securities including a back-up account at another securities brokerage firm.
During extreme market conditions, you might experience delays in order executions because market making firms will temporarily discontinue normal automatic order execution standards and switch to a manual order process, and/or reduce their size guarantees on individual stocks. You may also experience executions at prices significantly away from the market price quoted or displayed at the time an order was entered, less shares than desired, or losses. To potentially reduce your risk of receiving an execution away from the market, it is a good idea to use limit orders rather that market orders in a fast moving market.
You should pick the type of order that is best suited for your situation and which considers current market conditions. Your orders are accepted only on an unsolicited basis. You are solely responsible for any and all orders placed in your account(s) and at your own risk. Solaris Securities does not make any recommendations whatsoever regarding any security or securities product. Additionally, your account(s) are accepted on a fully disclosed basis and solely at the discretion of Solaris Securities and Penson Financial Services, Inc., the company's clearing firm. Penson Financial Services, Inc., provides all clearing, settlement and other related services for your account(s).
Options
Options involve risks and are not appropriate for all investors. Prior to buying or selling options, please read Characteristics and Risk of Standardized Options. You may also request a copy of the document by writing to the Options Supervisor at Solaris Securities at 477 South Rosemary Ave., Suite 219, West Palm Beach, FL 33401. The risk disclosure document explains the characteristics and risks of exchange-traded options.
