risk information.

    General Information on Risks

    Investing in financial markets always exposes investors to risk-taking. In its simplest form, risk could be described as the volatility or fluctuation of a financial instrument over a period of time. The higher the volatility or fluctuation of a financial instrument, the higher the risks of capital loss for an investor.

    What is the relationship between risk and return? One fundamental aspect of investing in financial markets is that investors need to be rewarded for the risks they are taking. The higher the risk, the higher the return investors require and vice-versa. This means that assets in financial markets are priced relative to the risk they represent for investors.

    Investments are subject to a variety of risks. Their value can fall as well as rise and you may get back less than what you originally invested. Before entering into any transaction, an investor should consult his/her investment advisor and, where necessary, obtain independent professional advice in respect of risks, as well as any legal, regulatory, credit, tax, and accounting consequences.

    In general, products such as equities, bonds, securities lending, forex, or money market instruments bear risks, which are higher in the case of derivative, structured, and private equity products; these are aimed solely at investors who are able to understand their nature and characteristics and to bear their associated risks.

    The value of any investment in a currency other than the base currency of a portfolio is subject to the foreign exchange rates. Exchange rates may fluctuate and adversely affect the value of the investment when it is realised and converted back into the investor’s base currency. The liquidity of an investment is subject to supply and demand. Some products may not have a well-established secondary market or in extreme market conditions may be difficult to value, resulting in price volatility and making it difficult to obtain a price to dispose of the asset.

    Adding leverage to your portfolio may amplify returns in a rising market, but will amplify losses in a falling market.

    For more detailed information on the risks associated to financial instruments, please consult the following documents available on our website:

    • Swiss Banking Association Brochure – Risks involved in Trading Financial Instruments: here
    • Information on risks relating to transactions in standardised and non-standardised derivatives/structured products and on investment vehicles with special risks: here
    • Risks associated with Financial Instruments (Appendix 2 MiFID Brochure): here


    The information provided on this website on sustainability is intended solely to provide an indication of the sustainability principles, initiatives and standards that Lombard Odier Group believes in and may apply when seeking to evaluate the sustainability of a company and/or an investment. It should be understood that the policies, processes, restrictions and methodologies described in this statement may change over time without notice and may be applied or dis-applied at the discretion of the relevant Lombard Odier entity.

    The following factors may have an impact on companies and the financial instruments they issue, thus affecting their value and potentially putting your investment in them at risk:

    • The exposure in different sectors/industries to opportunities and risks arising from sustainability dynamics, including climate change scenarios, the macro-economic world view, energy and mobility forecasts,.
    • The susceptibility of each sector/industry to those risks and opportunities, including what business strategies exist to mitigate the risks or capture the opportunities, climate mitigation and adaptation, new innovative/disruptive technologies and company preparedness.

    For more information on how Lombard Odier Group defines and approaches sustainability, including certain considerations and limitations with its approach, please refer to the section on SFDR in our website here.

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