
242 FSA derivatives and warrants risk warning
The amount you can lose in limited liability transactions will be less than
in other margined transactions, which have no predetermined loss limit.
Nevertheless, even though the extent of loss will be subject to the agreed
limit, you may sustain the loss in a relatively short time. Your loss may
be limited, but the risk of sustaining a total loss to the amount agreed is
substantial.
11. Collateral
If you deposit collateral as security with your firm, the way in which it
will be treated will vary according to the type of transaction and where it
is traded. There could be significant differences ...