1. Product Description

A CFD (Contract for Difference) is a financial agreement between a 'buyer' and a 'seller' to exchange the difference between the current price of an underlying asset (such as currencies, commodities, indices, shares, etc.) and its price at the time the contract is closed.

Characteristics of CFDs

• Leverage: CFDs are leveraged products, meaning clients can gain exposure to the markets with a smaller margin.
• Profit and Loss: Upon closing a contract, clients either gain or lose based on the difference between the opening and closing prices.
• Ownership: CFDs do not entail ownership of the underlying asset but reflect price movements.

2. Trading Is Risky and Speculative

Trading in financial markets carries a significant risk of loss. You should be prepared to lose your entire investment and never invest money that you cannot afford to lose.

3. Gearing And Leverage

Leverage amplifies both gains and losses. Clients are required to maintain a margin and ensure sufficient equity to cover running profits and losses. If your account balance becomes insufficient, the Company may close positions without notice.

Risk Mitigation Strategies

• Regularly monitor your account and open positions.
• Use stop-loss orders to limit potential losses.
• Avoid over-leveraging and assess your risk tolerance.

4. Off-Exchange Transactions

Trading CFDs involves off-exchange (OTC) transactions, which expose clients to greater risks, such as limited liquidity and counterparty risk.

5. Underlying Market Volatility

The prices of CFDs are influenced by the volatility of the underlying markets. Significant fluctuations can impact open positions and profitability.

6. Stop Loss Limits

While stop-loss orders are designed to limit potential losses, they may not be effective in volatile market conditions or during market closures.

7. Liquidity Risk

Liquidity risk refers to the potential difficulty in executing trades due to insufficient buyers or sellers in the market, especially during periods of low liquidity.

8. Execution Risk

Execution risk arises when there are delays in order execution or when the market moves unfavorably during the order delay, leading to unexpected outcomes.

9. Time May Not Be on Your Side

If you cannot actively monitor your trades, it is recommended that you refrain from trading CFDs or other complex financial instruments, as they require regular oversight.

10. Cost and Charges

Clients should be aware of all relevant costs and charges related to trading, including transaction fees, spreads, and overnight financing costs. All costs are communicated transparently.

11. Swap Values and Charges

Swap charges apply when positions are held overnight. These charges depend on market conditions and interest rates.

12. Complex Instruments Warning

Derivatives, including CFDs, are complex instruments that carry significant risks. Clients should only trade them if they fully understand the risks involved.

13. Client’s Acknowledgement

By participating in trading activities, clients acknowledge that they have read, understood, and accepted all risks associated with trading CFDs and other financial instruments.