In compliance with FCA requirements this notice is provided to you because you are proposing to undertake dealings in financial instruments in the form of spread bets or CFDs with a firm which is carrying on investment business. This notice provides you with information about the risks associated with spread betting, but it cannot explain all of the risks, nor how such risks relate to your personal circumstances as this is governed by your own individual trading methodology which dictates your specific exposure to risk and your desired levels of risk appetite.
We aim to provide a premier execution service with functional customer support and as such aim to provide you with factual market information and product specific and or transaction specific information at your request.
The nature of our Products carry a higher risk of loss than trading many traditional instruments. As such for many members of the public, trading in our Products may not be suitable. It is critical that you should not engage in trading in our Products unless you are able to understand the mechanics and risks associated with such trading, and are also satisfied that such trading is suitable for you in light of your circumstances and financial resources at that specific time.
In considering whether to engage in trading our Products, you should be aware of the following risks.
Gearing & Leverage
Your account must be funded before any transactions can be executed. You will be required to place the margin requirement of each individual trade and as our products are geared/leveraged, this deposit will usually be a modest proportion of the overall bet value. The gearing/leveraged nature of the products mean that a small price movement in the underlying instrument magnifies either your profit or loss.
The potential expedient movement of prices means that you must ensure that your account is always adequately funded to maintain open positions. As such you may need to provide us with substantial additional deposits at short notice. Failure to do this could result in positions being closed. You will be responsible for you losses incurred as a result of this action.
Adverse movements in the underlying market may lead to the loss of the whole of your deposit and possibly more, and as such your account may be in debit.
The speed at which profits and losses can be incurred for these instruments, due to their geared nature means that it is essential to monitor your positions closely. Tis is solely your responsibility.
The instruments you trade with us are synthetically created by us mirroring the movement and depth of the underlying asset. As such dealing in our products is considered exclusively off-exchange (over the counter or OTC). All client transactions are back to backed in the market simultaneously at point of execution with our liquidity partners. The liquidity providers host the products who are the venue of execution. At no point do we trade in a proprietary fashion.
The Underlying Instrument
We will execute all trades resulting from client instructions with one of our Liquidity Providers, and deliver the synthetically created instrument to the client. As such the client Only holds a synthetic position and has no entitlement to the underlying instrument or voting rights if applicable.
We will provide our clients with factual market information and information about our transaction procedures, the potential risks involved in trading our products (and how to minimise said risks). All decisions to trade are exclusively yours.
All trades with us are legally enforceable by both parties.
We are required by our regulator before opening an account for you to ensure that our product offering is suitable for you based on the information you provide us with. As such we may ask you for additional information concerning your financial assets and earnings. Any decision to trade and your understanding of the risks involved in said trading are yours. It is your responsibility to monitor your own positions, the level of risk you take and your continued ability to fiscally maintain any exposure resulting from open positions.
Volatility & Liquidity
Fluctuation in volatility and liquidity will directly impact your P&L.
Price movements in the underlying instruments can be volatile and unpredictable. We have no control over instrument price movements.
A feature of volatile markets is ‘Gapping’ where prices are not consecutive and can be fast moving. We do not offer guaranteed Stop Losses so instances of volatility or a lack of liquidity (the depth of the underlying market) may mean that your stop loss is executed well through your designated level. You should factor this into your trading strategy.