Contracts for Difference (CFD). 12.1. A CFD is an agreement to exchange the difference between the opening and closing value of a contract when closed. Rather than buying or selling the underlying instrument on which your contract is based, you 12.2. CFDs are a way of trading on the upward or downward price movements of traditional financial markets without buying or selling the underlying asset directly. The potential losses associated with the price movements can exceed the total value of the initial margin (and any additional margin funds) you have deposited with us, and you may be obliged to close your positions at the worst possible time. 12.3. CFDs are contracts that can be entered into in relation to Commodities or the FTSE-100 index or any other index or share, as well as Currency. Investing in a CFD carries risks similar to investing in a future or an option and you should be aware of these. Transactions in CFDs may also involve a contingent liability and you should be aware of the implications of this as set out in paragraph (h) below. 12.4. All these products are types of leveraged derivatives that are used for speculative or hedging investment purposes. Transactions in these products may also have a contingent liability and you should be aware of the implications of this as set out in paragraph (d) below. 12.5. In addition to industry General Risk Disclosure Notice contained in this Agreement, you should be aware that margined currency trading is one of the riskiest forms of investment available in the financial Markets and is only suitable for sophisticated individuals and institutions. Given the possibility of losing an entire investment, speculation in the foreign exchange Market should only be conducted with risk capital funds that if lost will not significantly affect your personal or institution's financial wellbeing. 12.6. If you have pursued only conservative forms of investment in the past, you may wish to study currency trading further before continuing an investment of this nature. 12.7. If you wish to continue with your investment, you acknowledge that the funds you intend to invest is money you can afford to lose and the potential loss of all or more than your investment will not jeopardize your style of living nor will it detract from your future retirement program. 12.8. Additionally, you fully understand the nature and risks of trading spot Forex, currency options, CFDs or spread betting investments, and your obligations to others will not be neglected should you suffer financial losses.
Appears in 5 contracts
Samples: Client Agreement, Client Agreement, Client Agreement
