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Definitions of Principal Terms used in the Target Market and Strategy Table

Knowledge and Experience

Basic Investor: Investors who have limited knowledge and experience in relevant product categories.

Informed Investor: Investors who have good knowledge and experience in relevant product categories.

Advanced Investor: Investors who have extensive knowledge and experience in relevant product categories.

Risk tolerance

Conservative: Investors who tolerate no loss or only a moderate loss in their investment or initial amount.

Balanced: Investors who tolerate a loss of the entire investment or initial amount. Investment strategies.

Risk-oriented/speculative: Investors who tolerate losses exceeding their investment or initial amount.

Intended Purpose of Trading

Growth: to increase the principal value of your investments over time rather than seek current income. Investor assumes higher degree of risk.

Hedging: To take positions in a product to hedge or offset the risk in another product.

Preservation of Capital and Income Generation: To seek maximum safety and stability for your principal by focusing on securities and investments that carry a low degree of risk and/or to generate dividend, interest or other income instead of or in addition to long-term capital appreciation.

Profits from Active Trading and Speculation: to increase the principal value of your investments by assuming substantially higher risk to your investment capital and/or to substantially increase the principal value of your investments by assuming substantially higher risk to your investment capital.

The risk of loss in online trading of stocks, options, futures, currencies, foreign equities, and fixed income can be substantial. Options are not suitable for all investors. For more information read the "Characteristics and Risks of Standardized Options". For a copy click here.

Your capital is at risk and your losses may exceed the value of your original investment.

Interactive Brokers (U.K.) Limited is authorised and regulated by the Financial Conduct Authority. FCA Reference Number 208159.

Interactive Brokers LLC is regulated by the US SEC and CFTC and is a member of the SIPC (www.sipc.org) compensation scheme;
products are only covered by the UK FSCS in limited circumstances.

Before trading, customers must read the relevant risk disclosure statements on our Warnings and Disclaimers page.

For a list of IBG memberships worldwide, click here.