You are entering into spread bets with Finsa Europe Ltd. These contracts are a high risk financial product and may not be suitable for everyone. It is important that you fully understand the risks involved before entering into any transactions with us.
It is important that should you proceed with entering into transactions with us, that you continue to remain aware of the risks involved.
This notice details information about some of risks associated with these products, however if you are in any doubt you should seek professional advice.
Prior to proceeding with the opening of an account for you, we are required to undertake an evaluation as to whether it is appropriate product for you to enter into. If we believe it is not, we shall warn you accordingly.
The decision whether to proceed with the account opening and whether or not you understand the risk involved, is entirely yours.
We may ask you for details of your income and liquid savings and investments, however we will not monitor these and it is your responsibility to ascertain whether your financial resources are adequate to cover the risks of any trading that you undertake.
GEARING AND LEVERAGE
Each trade that you enter into; will generally require you to have sufficient funds available to cover the margin requirement. These amounts vary from market to market and also depend on the size of the transaction; however it will usually be a relatively small proportion of the notional principle value of the contract. This means you will be gearing or leveraging up.
As a result of gearing and leverage any relatively small movement in price can result in a high return or substantial losses.
You must monitor your account closely at all times, as any relatively small price movement may result in you being required to immediately deposit additional funds and your failure to do so, may result in the closure of all or any of your trades. You will be liable for all losses incurred.
It is possible for you to lose more than the level of funds you have deposited with us and any negative cash balance as a result of this will be immediately due and payable as these contracts are legally enforceable.
Volatile market conditions may cause a particular market or markets to immediately move from one price to another. This may for example, be caused by economic data releases, market announcements and world events and can occur when the underlying market is open or closed. If such events occur, gapping can result in significant losses (or profits) and any non-guaranteed stop losses will not offer you protection against this.
CLIENT MONEY AND OTC DERIVATIVES
As our spread bets and CFD’s are not made on any exchange, the prices are set by us. Each contract constitutes a trade with us and is not transferrable to any other person.
As a result you may be exposed to the risk of our default. In this unlikely event we are members of the Financial Services Compensation Scheme, which in respect of a proven and eligible claim provides a retail client with protection of the first £50,000 of any claim.