CFDs are high risk investments, which are not suitable for many investors. Trading in CFDs carries a high degree of risk, prices may change quickly and go down as well as up and you can lose more than your initial deposit. Therefore, please ensure that you fully understand the risks involved before trading. CFDs are leveraged financial products and as such, trading CFDs involves a high risk of loss. It is very important that you do not engage in trading in our Products unless you know, understand and are able to manage the risks associated with such trading. Past performance will not necessarily be repeated and is no guarantee of future success. Under no circumstances should risk more than you are prepared to lose.
This Risk Disclosure Notice will provide you with information about some of the risks associated with the services and Products that Acetop Financial Limited (“Acetop”) offers. Please be advised that this Notice cannot and does not explain all of the risks involved or how such risks relate to your personal circumstances. If you are in doubt you should seek professional advice.
It is important that you fully understand the risks involved before deciding to enter into a trading relationship with us. If you open a trading account with Acetop it is important that you remain aware of the risks involved. You need to ensure that you fully understand the nature of Contract For Difference (“CFD’s”), and the extent of all risks and aspects involved in trading CFDs, before you enter into a trading relationship with us. You must also have adequate financial resources to bear such risks and you must ensure that you continue to monitor your positions carefully.
You should carefully read this Risk Disclosure Notice in conjunction with the ‘Terms and Conditions’ and the documentation and information available to you through our Website.
CFDs and Spread Betting
CFDs are complex financial products. CFDs are leveraged products and incur a high level of risk that can result in the loss of all of your invested capital. Therefore, CFDs are not suitable for all individuals. Under no circumstances, you should risk more than you are prepared to lose. Before deciding to trade, you should ensure that you understand the risks involved and take into account your level of knowledge and experience. If you are in doubt you should always seek professional advice.
Each CFD or spread bet you open with us results in you entering into a Contract with us. These Contracts can be closed only with us and are not transferable to any other person. Any Contracts that you enter into with us will not provide any right to the underlying instruments or to voting rights.
Investing in a CFD and in a spread bet carries a high degree of risk because ‘leverage’ often obtainable means that a relatively small movement in the market can lead to a proportionately much larger movement in the value of your investment, this means that this can work against you, as well as for you. In this circumstance, you may need to provide further funds with little or no notice. You can lose more money than you have deposited into the account.
It is important to know that when a non-guaranteed Stop is triggered you are essentially issuing an order from you to us to close your Contract. A non-guaranteed stop loss does not guarantee your position will close at the exact level you specify. Therefore, if the market suddenly gaps beyond your stop level, it is possible that your position will be closed at a worse level than requested.
We aim to deal with such orders as quickly and fairly as possible however the time taken to fill the order and, depending on the level at which the order is filled, depends upon the underlying market. In fast-moving markets, a price for the level of your order might not be available or the market might move quickly and significantly away from the Stop level before we are able to fill it.
No Rights to the Underlying Instrument
Trading a CFD enable you to trade on the rising or falling prices of an instrument. You will not own the underlying instruments directly. You will not have any rights of ownership, delivery or otherwise in any Underlying Instrument as a result of a Trade with us. We will not transfer any Underlying Instrument or any rights (such as voting rights or delivery obligations) in it to you.
Before you place a Trade, which creates an Open Position you must ensure that your Trading Resource is sufficient to cover the Margin Requirement in respect of that Open Position. If your Trading Resource is less than the Margin Requirement for the Open Position you wish to create, we may reject your Trade.
You must ensure that the amount you have in your Trading Account exceeds the Maintenance Margin in order to keep a Transaction open. If our price moves against you, you may need to deposit additional funds at short notice to maintain your position(s). Failure to do so can result in the closure of part or all of your position.
If you do not hold sufficient funds to meet your margin requirements, then we may close your open positions immediately and without notice. We will be entitled to close or partially close one, more or all of your open trades and you will be responsible for any losses that may be incurred.
You should also be aware that under our Terms and Conditions we are entitled, at our sole discretion, to make a Margin Call which you are required to satisfy immediately. If you do not satisfy the Margin Call in a timely manner, we will be entitled to close or partially close one, more, or all of your trades.
Trades in our Products are legally enforceable. In certain circumstances, your losses on a Trade may be unlimited. You must ensure that you understand the potential consequences of a particular Product or Trade and be prepared to accept that degree of risk.
We are obliged by FCA Rules to obtain information about your relevant investment knowledge and experience so that we are able to assess whether our services and Products are appropriate for you.
Although we will review and consider whether our services and products are suitable for you, ultimately any decision to open an account and to use our products or services is yours. It is your responsibility to understand the risks involved with our products or services.
It is important that you comprehend the risks associated with trading in CFDs, as fluctuations in the price of the underlying market will have an effect on the profitability of the trade.
Slippage occurs when the market moves suddenly in any direction, and is the difference between the expected price of a trade, and the price at which the trade was actually executed. The price is then said to have ‘slipped’ when the market has ‘gapped’ from one level to another. This applies in the event of either advantageous or disadvantageous price movements.
A sudden shift in the price of an instrument or its underlying from one level to another can happen at any time. This can cause unexpected losses.
In setting our prices, spreads and the sizes in which we deal, we take into account the markets for the relevant underlying instruments. Market conditions can change significantly in a very short period of time, so that if you wish to sell an instrument or close a Contract, you may not be able to do so under the same terms as when you purchased or opened it. Under certain trading conditions it may be difficult or impossible to liquidate a position. This may occur, for example, at times of rapid price movement if the price rises or falls in one trading session to such an extent that under the rules of the relevant exchange trading is suspended or restricted.
A decrease in liquidity may adversely impact Our Price and our ability to quote and trade in a Market. If there is a significant reduction or a temporary or permanent liquidity in an Underlying Instrument, such events may be deemed an Event Outside of Our Control or Market Disruption Event. As such we may increase Our Price, suspend trading or take any other action we consider reasonable in the circumstances. As a result, you may not be able to place Trades or to close Open Positions in any affected Market.
Customers should be aware that CFDs denominated in a currency other than their home currency have the additional risk associated with currency fluctuations.
Where you are trading a product denominated in a currency different from that in which you hold your account, fluctuations in the exchange rate affect your profit and loss.
Investments in instruments denominated in a foreign currency may be unfavourably affected by the lowering of the exchange rate of this currency against another. The increase or decrease in the currency exchange rates may cause losses or profits for the financial instruments in the currency in which they are denominated.
Execution Only / No advice
Our services are provided on an execution only basis. Acetop does not provide investment, financial, legal, tax, regulatory or other advice relating to investments or trading our products.
From time to time we will provide information or research recommendations about the market, information about transaction procedures and information about the potential risks involved and how those risks may be minimised. Any material or information or other features, which may be provided to you through our Website, trading platforms, marketing or other is generic and shall not be treated as advice.
Any decision to use our products or services is made by you. If in any doubt, you should seek independent professional advice from a suitably qualified advisor, if necessary, prior to engaging in trading CFD with us.
Acetop will not provide any regulatory, tax or legal advice.
If you are in any doubt as to the tax treatment or liabilities of investment products available through your CFD or spread betting Account, you should seek independent advice. We shall not be responsible for advising you on any change in tax law or practice. You are responsible for the payment of all taxes that may arise in relation to your Trades. You shall in all circumstances be responsible for your own tax advice in relation to your Trades.
Regulatory and Legal Risk
Certain changes in laws and regulations may impact a security and investments in a sector or market. This risk is unpredictable and may vary from market to market. Acetop will not provide any regulatory or legal advice. It is your responsibility to ensure that you are fully aware of and regulatory and legal risks involved.
Client Money & Counterparty risk
In accordance with the FCA regulations if you are categorised as a retail client all funds and currencies belonging to you shall be held by in one or more segregated trust accounts. Designated client money is segregated from the assets of the Firm and is deemed client money for the purposes of the FCA rules.
We monitor the creditworthiness of our banks closely and select them on the basis of robustness and solidity this does not eliminate all risk.
If Acetop were to go into liquidation our clients would have their share of the segregated money pool returned, minus any administrators’ costs in handling and distributing these funds. Should there be a shortfall then individuals will be eligible for compensation from the Financial Services Compensation Scheme.
The Financial Services Compensation Scheme (FSCS) is the UK’s compensation fund of last resort for customers of financial services firms authorised by the FCA. In the event that Acetop were to become insolvent or cease trading, the FSCS will pay compensation to its customers. Customers of Acetop would fall under the ‘investments’ claim category, whereby the cover is £50,000 per person per firm.
In relation to CFDs, we are counterparty to all your trades. Given that you are dealing with Acetop as the counterparty to every transaction, you will have an exposure to us in relation to each of your transactions and are reliant on our ability to meet our obligations to you under the terms of each transaction. None of our CFD products are listed on an exchange, nor can any rights, benefits or obligations be transferred to anyone else. Whilst we undertake our obligation to provide you with best execution and to act reasonably and in accordance with our published terms and condition seriously, CFDs opened on your account with us must be closed with us, based on our prices and conditions.
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