Answer 1:
1. A trading benefit such as a “bonus” may lower the psychological threshold of retail clients to invest in speculative products by encouraging them to trade. It has been observed in this sector of the market that firms seeking to attract retail clients may advertise and offer various types of bonuses, which generally offer the possibility for the retail client to increase his or her possible profit on the trading account. However, the acceptance of such a bonus by a retail client may also result in that client taking a greater risk of loss then they would do otherwise. This could be the case because:
a. It has been observed in this sector of the market that a bonus may not equate to the allocation of real-life funds to the retail client’s trading account, but rather provide the possibility for the client to increase his or her potential profit by increasing the sum that the client has to speculate with (i.e. offer the retail client additional leverage). Additional leve
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