This document provides you with key information about this investment product. It is not marketing material. The information is required by law to help you understand the nature, costs, risks and rewards of this product and to help you compare it with other products.
The product is offered by Acetop Financial Limited (the “company”, “we” or “us”), a company is registered in England and Wales, number 10067568. Acetop financial is authorised and is regulated by the Financial Conduct Authority, number 767154. For more information, please call us on +44 (0)800 955 1710 or go to www.acetop.uk
This Key Information Document was updated on 3rd August 2021.
WHAT IS THIS PRODUCT?
A ‘contract for difference’ (“CFD”) is a leveraged contract which allows you as investor to speculate on movements of an underlying product or financial instrument such as a security, commodity, currency or index. This means you will never own the underlying assets/financial instrument. Accordingly, you can make gains or suffer losses as a result of price or value movements in relation to the underlying product or financial instrument to which you have the indirect exposure. Visit www.acetop.uk for further information on the CFD products that we offer.
The objective of a CFD is to allow an investor to gain leveraged exposure to the movement in value of the underlying commodity (whether up or down), without actually needing to buy or sell the physical commodity. The exposure is leveraged since the CFD only requires a small proportion of the notional value of the contract to be put down upfront as initial margin and is one of the key features of trading CFDs. The cash CFD does not have a pre-defined maturity date and is therefore open-ended; by contrast, a future CFD has a pre-defined expiry date. As a result, there is no recommended holding period for either and it is down to the discretion of each individual investor to determine the most appropriate holding period based on their own individual trading strategy and objectives.
Failure to deposit additional funds in the case of negative price movement could result in the CFD being automatically closed. This will occur when losses exceed the initial margin amount. Acetop also retains the ability to unilaterally terminate any CFD contract where it deems that the terms of the contract have been breached.
For more information please see our website.
Intended Retail Investor
CFDs are intended for investors who have knowledge of, and are experienced with, leveraged products. Potential investors will understand how the prices of CFDs are derived, the key concepts of margin and leverage and the fact that losses may exceed deposits. They will understand the risk/reward profile of the product compared to traditional share dealing. Investors will also have the appropriate financial means and the ability to bear losses in excess of the initial amount invested.
WHAT ARE THE RISKS AND WHAT COULD I GET IN RETURN?
The summary risk indicator is a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the markets or because we are not able to pay you.
We have classified this product as 7 out of 7, which is the highest risk class. This rates the potential losses from future performance at a very high level. Values may fluctuate significantly in times of high volatility or market/economic uncertainty, such swings are even more significant if your positions are leveraged and may also adversely affect your position. We may close your open contract if you do not maintain the minimum margin that is required, if you are in debt to the company, or if you contravene market regulations. This process may be automated. This product does not include any protection from future market performance so you could lose some or all of your investment- CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 33% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.You should carefully consider whether trading in leveraged products is appropriate for you.
Be aware of currency risk. It is possible to buy or sell CFDs in a currency which is different to the base currency of your account, so the final return you will get will depend on the exchange rate between the two currencies. This risk is not considered in the indicator shown above.
The scenarios shown below illustrate how your investment could perform but are not an exact indicator. The scenarios presented are an estimate of future performance based on evidence from the past on how the value of this investment varies. What you get will vary depending on how the market performs and how long you hold the position. The stress scenario shows what you might get back in extreme market circumstances, and it does not take into account the situation where we are not able to pay you.
The following assumptions have been used to create the scenarios:
|Opening price (Gold)||P||1312.59|
|Trade size (per 1 lot CFD)||TS||100oz|
|Margin requirement ($)||MR= P* TS * M||$6,562.95|
|Notional Value of the trade ($)||TN= P*TS||$131,259.00|
|Long Performance Scenario||Closing Price (incl.spread)||Price Change||Profit/Loss||Short Performance Scenario||Closing Price (incl.spread)||Price Change||Profit /Loss|
The figures shown include all the costs of the product itself. If you have been sold this product by someone else or have a third party advising you about this product, these figures do not include any cost that you pay to them. The figures do not take into account your personal tax situation, which may also affect how much you get back.
WHAT HAPPENS IF ACETOP IS UNABLE TO PAYOUT?
If Acetop is unable to meet its financial obligations to you, you may face financial losses and lose the value of your investment. However, Acetop financial segregates all retail client funds from its own money in accordance with the UK FCA’s Client Asset rules. The company also participates in the UK’s Financial Services Compensation Scheme (FSCS) which covers eligible investments up to £50,000 per person, per firm. For further information please see www.fscs.org.uk
WHAT ARE THE COSTS?
Before you begin to trade CFDs on commodities you should familiarise yourself with all one-off, ongoing, and incidental costs for which you will be liable. These charges will reduce any net profit or increase your losses.
|THIS TABLE SHOWS THE DIFFERENT TYPES OF COSTS FOR CFDS|
|Cash and Futures||One-offcosts||Spread||The difference between the Bid (Sell) and the Ask (Buy) price is called the spread.|
|Currency conversion||The fee charged for converting realised profit/loss from the instrument currency to the account currency.|
|Cash only||Ongoing costs||Overnight Financing||A fee is charged to your account for every night that your position is held.|
HOW LONG SHOULD I HOLD IT AND CAN I TAKE MONEY OUT EARLY?
CFDs have no recommended holding period, no cancellation period and therefore no cancellation fees. You can open and close positions at any time during markets hours. However, they are intended for short term trading, in some cases intraday, and are generally not suitable for long term investments.
HOW CAN I COMPLAIN?
If you wish to make a complaint, you should in the first instance contact our Client Service Team on +44 (0)800 955 1710 or at CS@acetop.uk or in writing to 1st Floor, 13 St. Swithins Lane, London, EC4N 8AL. Should you feel that your complaint has not been dealt with satisfactorily you may refer your complaint to the Financial Ombudsman Service (FOS). Please see www.financial-ombudsman.org.uk.
OTHER RELEVANT INFORMATION
If there is a time lag between the time you place your order and the moment it is executed, your order may not be executed at the price you expected. Ensure your internet signal strength is sufficient before trading. The Terms and Policies section of our website contains important information regarding your account. You should ensure that you are familiar with all the terms and policies that apply to your account.
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