key information document- cfds on fx pairs€¦ · a cfd is a popular form of derivative trading....
TRANSCRIPT
Griva Digeni & Kolonakiou 125, Grosvenor Tower, Ground Floor, 3107 Limassol, Cyprus
Phone: +80040015002 | Fax: +357 25 310 361 | Email: [email protected]
ITRADER.COM V3
KEY INFORMATION DOCUMENT- CFDs ON FX PAIRS Purpose
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, risks, costs, potential gains and losses of this product and to help you compare
it with other products.
Product
Name of Product: Contract for Differences (CFDs) on Foreign Exchange (FX pairs).
Provider: CFD on FX pairs is offered by ITRADER, a trading name operated by Hoch Capital Ltd (the “Company”), a Cypriot
Investment Firm (the “CIF”), authorised and regulated by the Cyprus Securities and Exchange Commission (the “CySEC”) under
licence number 198/13. For more information, you can visit the Company’s websites at www.itrader.com, www.hochcapital.com
or contact our support team via email at [email protected] or via phone at +80040015002.
This Key Information Document (“KID”) version was reviewed and updated on the 21st of June 2019 and you have the right to
request previous versions by contacting us via email at [email protected].
What is this product?
A CFD is a popular form of derivative trading. The price of the CFD is derived from the price of the underlying FX pair. CFD trading
allows a trader to speculate on rising or falling prices in an underlying FX pair. Even though you will never own the underlying
asset, your profit or loss depends on movements in the price of the underlying asset (FX pair) and the size of your position. The
Company offers trading opportunities on a wide range of FX pairs. All FX CFDs trades involve two currencies (e.g. EUR/USD). The
first currency of the pair (e.g. EUR) is called the base currency, while the second currency (e.g. USD) is called the Quote currency.
The price quoted on the platform, represents the price that one Euro is worth in US dollars. For any CFD, two prices are quoted:
(a) the higher price (‘Ask’), at which the investor can buy (‘go long’) and (b) the lower price (‘Bid’), at which the investor can sell
(‘go short’). The difference between the two is the spread. The leverage embedded within CFDs has the potential to magnify your
profits or losses. CFD transactions with the Company are not undertaken on a recognized exchange/regulated market, rather they
are undertaken Over the Counter (“OTC”).
Objectives:
The objective of a CFD on FX pairs is to speculate on the performance of an underlying currency pair without actually owning these
currencies. You will achieve profit if your speculation on the performance (positive or negative performance) was correct,
otherwise you will suffer losses with the difference between the opening price and closing price of the underlying asset. Please
note that when the equity (the sum of funds in the CFD trading account and the unrealised net profits of all open CFD position(s)
connected to that account) falls to less than half of the total initial margin used for all those open CFD position(s), your trading
position(s) will be closed in order to ensure that your trading equity will not fall below 50% of your margin used for all your open
trades.
Intended Retail Investor:
This product is for Retail clients with knowledge and/or experience of the characteristics of CFDs on FX pairs trading including the
main market factors that determine currencies fluctuations, the concept, effects and risks of leveraged trading, ability to
understand the risks involved including the risk of loss of their invested amounts. CFDs on FX pairs are compatible with the needs
of clients who seek short term capital gain and/or with a short-term investment horizon by investing in highly liquid markets which
can provide the benefit of quick pay-out. Clients should have a high-risk tolerance and be willing to accept rapid price fluctuations
and the specific risk of leverage in exchange for the opportunity of higher returns.
Term:
CFDs on FX pairs have no fixed or suggested maturity date. It’s up to each individual trader to decide the appropriate time to open
and close his positions. However, each individual’s position will only be kept open to the extent that he/she has available margin.
Failure to deposit additional funds in order to meet margin requirement as a result of negative price movement, may result in the
CFD position being automatically closed.
What are the risks and what could I get in return?
Risk Indicator
RISK WARNING: You are about to purchase a product that is not simple and may be difficult to understand.
Higher risk Lower risk
Griva Digeni & Kolonakiou 125, Grosvenor Tower, Ground Floor, 3107 Limassol, Cyprus
Phone: +80040015002 | Fax: +357 25 310 361 | Email: [email protected]
ITRADER.COM V3
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 value because of movements in the markets or because the Company is not able to pay you. The Company
has 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. Trading risks are magnified by leverage. However, due to negative balance protection, your losses cannot exceed
the amount invested. Trade only after you have acknowledged and accepted the risks. 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 on FX pairs in a currency which is different to the account currency
therefore, you will receive payments in a different currency, so the final return you will get depend on the exchange rate between
the two currencies. This risk is not considered in the indicator shown above.
Leverage trading: Leverage can magnify the profits as well as the losses. Losses arising as a result of price movements and failure
to deposit additional funds may result in the CFD being auto-closed.
Market risk: market fluctuations can impact the appreciation or depreciation of the asset value and can impact your trading result.
CFD trading requires you to maintain a certain level of funds in your account in order to open position(s) and to keep the position(s)
open. This is the initial margin, maintenance margin respectively. You will be able to open a position by depositing only a small
percentage of the notional value of the position, creating a leveraged position. Leverage can significantly magnify your gains and
losses. If the funds in your account decrease to the point that they will soon become insufficient to keep your position(s) open –
meaning that your equity is getting close to the total maintenance margin - a margin alert will be issued, asking you to consider
depositing additional funds. If you fail to deposit additional funds and the market continues to move against you, the Company
may close your position(s) (immediately and without notice) and you will realise any losses. However, due to negative balance
protection, your losses cannot exceed the amount invested.
Technical Risks: Since trading of the product depends on technology i.e. PC, mobile phone, internet, failure and delays etc., you
are exposed to electronic disruptions, leading to delays in the opening and closing of a transaction, for which the Company shall
not be held liable. This product does not include any protection from future market performance, so you could lose some or all of
your trading balance. For more information on the Risks associated with trading the product, please see our Risk Disclosure
document.
Liquidity Risk: This is the financial risk that for a certain period of time an underlying asset cannot be traded quickly enough in the
market without impacting the market price. You acknowledge that some products offered by the Company may suffer from
liquidity strains due to adverse market conditions, and as such, the volatility may be reflected in a larger spread between the ASK
and BID prices, resulting in a change in the price of the product.
Performance Scenarios:
FX pairs CFD (EUR/USD), held intraday
Open Price (FX pair): OP $ 1.1025
Trade Size (CFD per lot) TS € 100,000
Margin: M 3.0%
Margin Required (USD) MR = OP x TS x M $ 3,308
Notional Value of the Trade (USD) NVT = MR/M $ 110,250
BUY (LONG) Performance Scenario
Closing Price (incl. spread)
Price Change
Profit/Loss SELL (SHORT) Performance Scenario
Closing Price (incl. spread)
Price Change
Profit/Loss
Favourable $ 1.12455 2% $ 2,205 Favourable $ 1.08045 -2% $ -2,205
Moderate $ 1.1080 0.5% $ 551 Moderate $ 1.09699 -0.5% $ -551
Unfavourable $ 1.0860 -1.5% $ -1,654 Unfavourable $ 1.11904 1.5% $ 1,654
Stress $ 1.0694 -3% $ -3,308 Stress $ 1.13558 3% $ 3,308
The scenarios above are taking into consideration the client’s decision to buy/sell the underlying asset as per the above figures
and closing the trade on the same day. The potential profit and loss are based on the percentage change of the underlying asset
as described in the tables above. These scenarios illustrate how your investment could perform. You can compare them with
other products. The scenarios presented are an estimate of future performance based on evidence form the past on how the
value of this investment varies and are not an exact indicator. What you get will vary depending on how the market performs
and how long you keep the investment/product. 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 figures shown include all
Griva Digeni & Kolonakiou 125, Grosvenor Tower, Ground Floor, 3107 Limassol, Cyprus
Phone: +80040015002 | Fax: +357 25 310 361 | Email: [email protected]
ITRADER.COM V3
costs of the product itself but may not include all the costs that you pay to your advisor or distributor. The figures do not take
into account your personal tax situation, which may also affect how much you get back.
What will happen if the Company is unable to pay out?
The Company is a member of the Investor Compensation Fund (the “ICF”) which covers non-professional clients as defined in the Investor Compensation Fund Policy in circumstances when the Company is either unable to return to its covered clients funds owed to them and/or unable to return financial instruments to the covered clients which the Company holds or controls in its accounts on behalf of the clients. The maximum amount of compensation that a covered client can receive by the Fund is €20,000 (Euro Twenty Thousand) or 90% of the covered client’s claim, whichever is lower.
What are the costs?
Trading a CFD on an underlying FX pair incurs the following costs (the table shows the different types of cost categories and their
meaning):
How long should I hold it, and can I take money out early?
CFDs on FX pairs have no recommended holding period hence, they are intended mostly for short term trading. Provided that the Company is open for trading, you can enter and exit positions at any time, as per the market’s trading hours. The Company shall proceed with the settlement of all trades (allocation of profits/losses) upon the execution and closure of the trade.
How can I complain?
If after consulting with a member of the Company’s support team, you are unable to obtain a satisfactory explanation to your inquiry, we welcome you to escalate your complaint by contacting our management team, by email, at [email protected]. You can also submit a formal complaint to the Company’s compliance department. In order to submit a formal complaint, you should include details and any supporting documentation on the matter, using the online form. Within five (5) business days from the day an official complaint has been received through the Company’s online form, we will send a written confirmation of the receipt of the complaint, a unique reference number that should be used when contacting the Company and the estimated time for receiving a final decision. For more information please refer to our complaint procedure.
If after filing a complaint with us, you are dissatisfied with our response to your complaint, you are entitled to refer the matter to
the Financial Ombudsman Service of the Republic of Cyprus ("FOSRC").
Other Relevant information
In case 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 Documentation section of the Company’s website contains valuable information regarding your account, which you should
read, understand and acknowledge. You should ensure that you are familiar with the Terms and Conditions and all the policies
that apply to your account.
For any information not found in this KID or the Company’s website www.itrader.com please contact us at [email protected].
One-off entry or
exit costs Spread
The difference between the buy price and the sell price is the spread. This cost is realised each time you open and close a trade. For example, if the FX currency pair (EUR/USD) is trading at $ 1.1025, our offer price (the price in which you can buy), might be $ 1.1026 and our bid price (the price at which you can sell), might be $ 1.1024.
Ongoing costs Overnight
financing fees
An overnight financing fee is either added to or subtracted from your account whenever a position is left open overnight. The overnight financing fees are found in the instrument's details on the trading platform and it is charged per lot. Example 1 lot of the specific CFD’s on FX currency pair is defined as 100,000. The trade size is 3 lots. Opening Price is $1.1026. If the overnight financing fee is $20 per lot and the client holds a position from Monday to Wednesday, the client will be charged $120 overnight for financing fee i.e. 3(lots) x $20(financing fee) x 2(overnights) = $120 will be charged as financing fee.
Griva Digeni & Kolonakiou 125, Grosvenor Tower, Ground Floor, 3107 Limassol, Cyprus
Phone: +80040015002 | Fax: +357 25 310 361 | Email: [email protected]
ITRADER.COM V3
KEY INFORMATION DOCUMENT- CFDs ON SPOT IN COMMODITIES Purpose
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, risks, costs, potential gains and losses of this product and to help you compare
it with other products.
Product
Name of Product: Contract for Differences (CFDs) on Spot in Commodities.
Provider: CFDs on Spot in Commodities are offered by ITRADER, a trading name operated by Hoch Capital Ltd (the “Company”), a
Cypriot Investment Firm (the “CIF”), authorised and regulated by the Cyprus Securities and Exchange Commission (the “CySEC”)
under the licence number 198/13. For more information, you can visit the Company’s websites at www.itrader.com,
www.hochcapital.com or contact our support team via email at [email protected] or via phone at +80040015002.
This Key Information Document (“KID”) version was reviewed and updated on the 21st of June 2019 and you have the right to
request previous versions by contacting us via email at [email protected].
What is this product?
CFDs on Spot in Commodities are leveraged financial instruments settled in cash and not undertaken on a recognised
exchange/regulated market, rather they are traded Over the Counter ("OTC"). The client speculates on the price movement on
rising or falling prices on the underlying commodity without actually investing in or owning these commodities, by buying and
selling the CFD contracts. The price of the CFD on Spot in Commodities is derived from the price of the underlying asset which is
the current spot price. For any CFD, two prices are quoted: (a) the higher price (‘Ask’), at which the investor can buy (‘go long’)
and (b) the lower price (‘Bid’), at which the investor can sell (‘go short’). The difference between the two is called the spread.
Objectives:
The objective of a CFD on Spot in Commodities is to speculate on the performance of a commodity without actually investing in or
owning the real commodity. You will achieve profit if your speculation on the performance (positive or negative performance) was
correct, otherwise you will suffer losses with the difference between the opening price and closing price of the underlying asset.
Please note that when the equity (the sum of funds in the CFD trading account and the unrealised net profits of all open CFD
position(s) connected to that account) falls to less than half of the total initial margin used for all those open CFD position(s), your
trading position(s) will be closed in order to ensure that your trading equity will not fall below 50% of your margin used for all your
open trades.
Intended Retail Investor:
This product is for Retail clients with knowledge and/or experience of the characteristics of CFDs on Spot in Commodities trading,
including the main market factors that determine commodities fluctuations, the concept, effects and risks of leveraged trading,
ability to understand the risks involved including the risk of loss of their invested amounts. CFDs on Spot in Commodities are
compatible with the needs of clients who seek short term capital gain and/or with a short-term investment horizon by investing
in highly liquid markets which can provide the benefit of quick pay-out. Clients should have a high-risk tolerance and be willing to
accept rapid price fluctuations and the specific risk of leverage in exchange for the opportunity of higher returns.
Term:
CFDs on Spot in Commodities do not have a pre-defined maturity date and they are therefore open-ended. It’s up to each individual
trader to decide on the appropriate time to open and close his positions. However, each individual’s position will only be kept
open to the extent that he/she has available margin. Failure to deposit additional funds in order to meet margin requirement as a
result of negative price movement, may result in the CFD position being automatically closed.
What are the risks and what could I get in return?
Risk Indicator
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 value because of movements in the markets or because the Company is not able to pay you. The Company
RISK WARNING: You are about to purchase a product that is not simple and may be difficult to understand.
Higher risk Lower risk
Griva Digeni & Kolonakiou 125, Grosvenor Tower, Ground Floor, 3107 Limassol, Cyprus
Phone: +80040015002 | Fax: +357 25 310 361 | Email: [email protected]
ITRADER.COM V3
has classified this product as 7 out of 7, which is the highest risk class. This rates the potential losses from future performance of
the product at a very high level. Trading risks are magnified by leverage. However, due to negative balance protection, your losses
cannot exceed the amount invested. Trade only after you have acknowledged and accepted the risks. 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 on a commodity in a currency which is different to the base currency
therefore, you will receive payments in a different currency, so the final return you will get depend on the exchange rate between
the two currencies. This risk is not considered in the indicator shown above.
Leverage trading: Leverage can magnify the profits as well as the losses. Losses arising as a result of price movements and failure
to deposit additional funds may result in the CFD being auto-closed.
Market risk: market fluctuations can impact the appreciation or depreciation of the asset value and can impact your trading result.
CFD trading requires you to maintain a certain level of funds in your account in order to open position(s) and to keep the position(s)
open. This is the initial margin, maintenance margin respectively. You will be able to open a position by depositing only a small
percentage of the notional value of the position, creating a leveraged position. Leverage can significantly magnify your gains and
losses. If the funds in your account decrease to the point that they will soon become insufficient to keep your position(s) open –
meaning that your equity is getting close to the total maintenance margin - a margin call or alert will be issued, asking you to
consider depositing additional funds. If you fail to deposit additional funds and the market continues to move against you, the
Company may close your position(s) (immediately and without notice) and you will realise any losses. However, due to negative
balance protection, your losses cannot exceed the amount invested.
Technical Risks. Since trading of the product depends on technology i.e. PC, mobile phone, internet failure and delays etc., you
are exposed to electronic disruptions, leading to delays in the opening and closing of a transaction, for which the Company shall
not be held liable. This product does not include any protection from future market performance, so you could lose some or all of
your trading balance. For more information on the risks associated with trading the product, please see our Risk Disclosure
document.
Liquidity Risk: This is the financial risk that for a certain period of time an underlying asset cannot be traded quickly enough in the
market without impacting the market price. You acknowledge that some products offered by the Company may suffer from
liquidity strains due to adverse market conditions, and as such, the volatility may be reflected in a larger spread between the ASK
and BID prices, resulting in a change in the price of the product.
Performance Scenarios:
BUY (LONG) Performance Scenario
Closing Price (inc. spread)
Price Change
Profit/Loss Sell (Short) Performance Scenario
Closing Price (inc. spread)
Price Change
Profit/Loss
Favourable 50.5$ 1% (50.5-50) x 1000 = $500 profit
Favourable 48.5$ -3% (50-48.5) x 1000 = $1,500 profit
Moderate 50.25$ +0,5% (50.25-50) x 1000 = $250 profit
Moderate 49.75$ 0,5% (50-49.75) x 1000 = $250 profit
Unfavourable 49.5$ -1% (49.5-50) x 1000 = $-500 loss
Unfavourable 50.5$ 1% (50-50.5) x 1000 = $-500 loss
Stress 47.5$ -5% (47.5-50) x 1000 = $-2,500 loss
Stress 52.5$ 5% (50-52.5) x 1000 = $-2500 loss
The scenarios above are taking into consideration the client’s decision to buy/sell the underlying asset as per the above figures
and closing the trade on the same day. The potential profit and loss are based on the percentage change of the underlying asset
as described in the tables above. These scenarios illustrate how your investment could perform. You can compare them with other
products. The scenarios presented are an estimate of future performance based on evidence from the past on how the value of
this investment varies and they are not an exact indicator. What you get will vary depending on how the market performs and
how long you keep the investment/product. 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 figures shown include all costs of the product
(CFDs) on Spot in Commodities (held intraday)
Open Price (CFD): OP $50
Trade Size (per CFD): TS 1000
Margin: M 10%
Margin Required (USD): MR = OP x TS x M $5,000
Notional Value of the Trade (USD): NVT = MR/M $50,000
Griva Digeni & Kolonakiou 125, Grosvenor Tower, Ground Floor, 3107 Limassol, Cyprus
Phone: +80040015002 | Fax: +357 25 310 361 | Email: [email protected]
ITRADER.COM V3
itself but may not include all the costs that you pay to your advisor or distributor. The figures do not take into account your personal
tax situation, which may also affect how much you get back.
What will happen if the Company is unable to pay out?
The Company is a member of the Investor Compensation Fund (the “ICF”) which covers non-professional clients as defined in the Investor Compensation Fund Policy in circumstances when the Company is either unable to return to its covered clients funds owed to them and/or unable to return financial instruments to the covered clients which the Company holds or controls in its accounts on behalf of the clients. The maximum amount of compensation that a covered client can receive by the Fund is €20,000 (Euro Twenty Thousand) or 90% of the covered client’s claim, whichever is lower.
What are the costs?
Trading a CFD on an underlying spot commodity incurs the following costs (the table shows the different types of cost categories
and their meaning):
How long should I hold it, and can I take money out early?
CFDs on Spot in Commodities have no recommended holding period hence, they are intended mostly for short term trading. Provided that the Company is open for trading you can enter and exit positions at any time, as per the market’s trading hours. The Company shall proceed with the settlement of all trades (allocation of profits/losses) upon the execution and closure of the trade.
How can I complain?
If after consulting with a member of the Company’s support team, you are unable to obtain a satisfactory explanation to your inquiry, we welcome you to escalate your complaint by contacting our management team, by email, at [email protected]. You can also submit a formal complaint to the Company’s compliance department. In order to submit a formal complaint, you should include details and any supporting documentation on the matter, using the online form. Within five (5) business days from the day an official complaint has been received through the Company’s online form, we will send a written confirmation of the receipt of the complaint, a unique reference number that should be used when contacting the Company and the estimated time for receiving a final decision. For more information please refer to our complaint procedure.
If after filing a complaint with us, you are dissatisfied with our response to your complaint, you are entitled to refer the matter to
the Financial Ombudsman Service of the Republic of Cyprus ("FOSRC").
Other Relevant information
In case 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 Documentation section can be found at the bottom of the Company’s website and contains valuable information regarding
your account, which you should read, understand and acknowledge. You should ensure that you are familiar with the Terms and
Conditions and all the policies that apply to your account.
For any information not found in this KID or the Company’s website www.itrader.com please contact us at [email protected].
One-off entry or
exit costs Spread
The difference between the buy price and the sell price is the spread. This cost is realised each time you open and close a trade. For example, if the underlying asset is trading at $49.75, our offer price (the price in which you can buy), might be $50 and our bid price (the price at which you can sell), might be $49.5.
Ongoing costs Overnight
financing fees
An overnight financing fee is either added to or subtracted from your account whenever a position is left open overnight. The overnight financing fees are found in the instrument's details on the trading platform and it is charged per lot. Example 1 lot of the specific CFD’s underlying asset is defined as 10 contracts. The trade size is 3
lots. Opening Price is $50. If the overnight financing fee is $20 per lot and the client
holds a position from Monday to Wednesday, the client will be charged $120 overnight
for financing fee i.e. 3lot × $20 financing fee × 2 overnights = $120 will be charged as
financing fee.
Griva Digeni & Kolonakiou 125, Grosvenor Tower, Ground Floor, 3107 Limassol, Cyprus
Phone: +80040015002 | Fax: +357 25 310 361 | Email: [email protected]
ITRADER.COM V3
KEY INFORMATION DOCUMENT – CFDs ON FUTURES IN INDICES Purpose
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, risks, costs, potential gains and losses of this product and to help you compare
it with other products.
Product
Name of Product: Contracts for Differences (CFDs) on Futures in Indices.
Provider: CFDs on Futures in Indices are offered by ITRADER, a trading name operated by Hoch Capital Ltd (the “Company”), a
Cypriot Investment Firm (the “CIF”), authorised and regulated by the Cyprus Securities and Exchange Commission (hereinafter
referred to as the “CySEC”) under licence number 198/13. For more information, you can visit the Company’s websites at
www.itrader.com, www.hochcapital.com or contact our support team via email at [email protected] or via phone at
+80040015002.
This Key Information Document (“KID”) version was reviewed and updated on the 21st of June 2019 and you have the right to request
previous versions by contacting us via email at [email protected].
What is this product?
Futures means a future contract which gives the buyer the obligation to purchase a specific asset, and the seller to sell and deliver
the asset at a specific future date, unless such contract is terminated prior to such date for any reason. However, the product
provided by the company is CFD on Futures in Indices are leveraged financial instruments settled in cash and not undertaken on a
recognised exchange/regulated market, rather they are traded Over the Counter ("OTC"). The client speculates on the price
movement on rising or falling prices on the underlying Index without actually investing in or owning these Indices, by buying and
selling the CFD contracts. The price of the CFD on Futures in Indices is derived from the price of the underlying asset which is the
futures’ price. For any CFD two prices are quoted: (a) the higher price (‘Ask’), at which the investor can buy (‘go long’) and (b) the
lower price (‘Bid’), at which the investor can sell (‘go short’). The difference between the two is called the spread.
Objectives:
The objective of a CFD on Futures in Indices is to speculate on the performance of an Index without actually investing in or owning
the real Index. You will achieve profit if your speculation on the performance (positive or negative performance) was correct,
otherwise you will suffer losses with the difference between the opening price and closing price of the underlying asset. Please note
that when the equity (the sum of funds in the CFD trading account and the unrealised net profits of all open CFD position(s)
connected to that account) falls to less than half of the total initial margin used for all those open CFD position(s), your trading
position(s) will be closed in order to ensure that your trading equity will not fall below 50% of your margin used for all your open
trades.
Intended Retail Investor:
This product is for Retail clients with knowledge and/or experience of the characteristics of CFDs on Futures in Indices trading
including the main market factors that determine indices fluctuations, the concept, effects and risks of leveraged trading, ability to
understand the risks involved including the risk of loss in their invested amounts. CFDs on Futures in
Indices are compatible with the needs of clients who seek short term capital gain and/or with a short-term investment horizon by
investing in highly liquid markets which can provide the benefit of quick pay-out. Clients should have a high-risk tolerance and be
willing to accept rapid price fluctuations and the specific risk of leverage in exchange for the opportunity of higher returns.
Term:
CFDs on Futures in Indices have a pre-defined maturity date and they are therefore not open-ended. The expiry date of a specific
CFD on Futures in Indices is available to be viewed in the Company’s platform. CFDs on Futures in Indices at their expiry cannot be
rolled over and if your positions are still open at the expiry date, they will be closed at the last available market price on the expiry
date. It’s up to each individual trader to decide the appropriate time to open and close his positions. However, each individual’s
position will only be kept open to the extent that he/she has available margin. Failure to deposit additional funds in order to meet
the margin requirement as a result of negative price movement, may result in the CFD position being automatically closed.
What are the risks and what could I get in return?
Risk Indicator
RISK WARNING: You are about to purchase a product that is not simple and may be difficult to understand.
Higher risk Lower risk
Griva Digeni & Kolonakiou 125, Grosvenor Tower, Ground Floor, 3107 Limassol, Cyprus
Phone: +80040015002 | Fax: +357 25 310 361 | Email: [email protected]
ITRADER.COM V3
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 value because of movements in the markets or because the Company is not able to pay you. The Company has
classified this product as 7 out of 7, which is the highest risk class. This rates the potential losses from future performance of the
product at a very high level. Trading risks are magnified by leverage. However, due to negative balance protection, your losses
cannot exceed the amount invested. Trade only after you have acknowledged and accepted the risks. 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 on a commodity in a currency which is different to the base currency,
therefore, you may receive payments in a different currency, so the final return you will get depends on the exchange rate between
the two currencies. This risk is not considered in the indicator shown above.
Leverage trading: Leverage can magnify the profits as well as the losses. Losses arising as a result of price movements and failure to
deposit additional funds may result in the CFD being auto-closed.
Market risk: market fluctuations can impact the appreciation or depreciation of the asset value and can impact your trading result.
CFD trading requires you to maintain a certain level of funds in your account in order to open position(s) and to keep the position(s)
open. This is the initial margin, maintenance margin respectively. You will be able to open a position by depositing only a small
percentage of the notional value of the position, creating a leveraged position. Leverage can significantly magnify your gains and
losses. If the funds in your account decrease to the point that they will soon become insufficient to keep your position(s) open –
meaning that your equity is getting close to the total maintenance margin - a margin call or alert will be issued, asking you to consider
depositing additional funds. If you fail to deposit additional funds and the market continues to move against you, the Company may
close your position(s) (immediately and without notice) and you will realise any losses. However, due to negative balance protection,
your losses cannot exceed the amount invested.
Technical Risks: Since trading of the product depends on technology i.e. PC, mobile phone, internet failure and delays etc., you are
exposed to electronic disruptions, leading to delays in the opening and closing of a transaction, for which the Company shall not be
held liable. This product does not include any protection from future market performance, so you could lose some or all of your
trading balance. For more information on the Risks associated with trading the product, please see our Risk Disclosure document.
Liquidity Risk: This is the financial risk that for a certain period of time an underlying asset cannot be traded quickly enough in the
market without impacting the market price. You acknowledge that some products offered by the Company may suffer from liquidity
strains due to adverse market conditions, and as such, the volatility may be reflected in a larger spread between the ASK and BID
prices, resulting in a change in the price of the product.
Performance Scenarios:
Indices CFD (held intraday)
Open Price (Index CFD): OP $ 1,000
Trade Size (per CFD) TS 10
Margin: M 10%
Margin Required (USD) MR = OP x TS x M $ 1,000
Notional Value of the Trade (USD) NVT = MR/M $ 10,000
BUY (LONG) Performance Scenario
Closing Price (incl. spread)
Price Change
Profit/Loss SELL (SHORT) Performance Scenario
Closing Price (incl. spread)
Price Change
Profit/Loss
Favourable $ 1,030 3% (1030-1000) x 10 = $ 300 profit
Favourable $ 970.00 -3% (1,000-970) x 10 = $ 300 profit
Moderate $ 1,005 0.5% (1005-1000) x 10 = $ 50 profit
Moderate $ 995.0 -0.5% (1,000-995) x 10 = $ 50 profit
Unfavourable $ 990 -1% (990-1000) x 10 = $-100 loss
Unfavourable $ 1,010 1% (1,000-1,010) x 10 = $-100 loss
Stress $ 950 -5% (950-1000) x 10 = $-500 loss
Stress $ 1,050 5% (1,000-1050) x 10 = $-500 loss
The scenarios above are taking into consideration client decision to buy/sell the underlying asset as per the above figures and closing
the trade at the same date. The potential profit and loss are based on the percentage change of the underlying asset as per the table
above. These scenarios illustrate how your investment could perform. You can compare them with other products. The scenarios
presented are an estimate of future performance based on evidence from the past on how the value of this investment varies and
they are not an exact indicator. What you get will vary depending on how the market performs and how long you keep the
investment/product. The stress scenario shows what you might get back in extreme market circumstances, and it does not take into
Griva Digeni & Kolonakiou 125, Grosvenor Tower, Ground Floor, 3107 Limassol, Cyprus
Phone: +80040015002 | Fax: +357 25 310 361 | Email: [email protected]
ITRADER.COM V3
account the situation where we are not able to pay you. The figures shown include all costs of the product itself but may not include
all the costs that you pay to your advisor or distributor. The figures do not take into account your personal tax situation, which may
also affect how much you get back.
What will happen if the Company is unable to pay out?
The Company is a member of the Investor Compensation Fund (the “ICF”) which covers non-professional clients as defined in the Investor Compensation Fund Policy in circumstances when the Company is either unable to return to its covered clients funds owed to them and/or unable to return financial instruments to the covered clients which the Company holds or controls in its accounts on behalf of the clients. The maximum amount of compensation that a covered client can receive by the Fund is €20,000 (Euro Twenty Thousand) or 90% of the covered client’s claim, whichever is lower.
What are the costs?
Trading a CFD on an underlying Commodity incurs the following costs (the table shows the different types of cost categories and
their meaning):
How long should I hold it, and can I take money out early?
CFDs on Futures in Indices have no recommended holding period hence, they are intended mostly, for short term trading. Provided that the Company is open for trading you can enter and exit positions at any time, as per the market’s trading hours. The Company shall proceed with the settlement of all trades (allocation of profits/losses) upon the execution and closure of the trade.
How can I complain?
If after consulting with a member of the Company’s support team, you are unable to obtain a satisfactory explanation to your inquiry, we welcome you to escalate your complaint by contacting our management team, by email, at [email protected]. You can also submit a formal complaint to the Company’s compliance department. In order to submit a formal complaint, you should include details and any supporting documentation on the matter, using the online form. Within five (5) business days from the day an official complaint has been received through the Company’s online form, we will send a written confirmation of the receipt of the complaint, a unique reference number that should be used when contacting the Company and the estimated time for receiving a final decision. For more information please refer to our complaint procedure.
If after filing a complaint with us, you are dissatisfied with our response to your complaint, you are entitled to refer the matter to
the Financial Ombudsman Service of the Republic of Cyprus ("FOSRC").
Other Relevant information
In case 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 Documentation section of the Company’s website contains valuable information regarding your account which, you should read,
understand and acknowledge. You should ensure that you are familiar with all the Terms and Conditions and all the policies that
apply to your account.
For any information not found in this KID or the Company’s website www.itrader.com please contact us at [email protected].
One-off entry or
exit costs Spread
The difference between the buy price and the sell price is the spread. This cost is realised each time you open and close a trade. For example, if the underlying asset is trading at $1000, our offer price (the price in which you can buy), might be $1000.50 and our bid price (the price at which you can sell), might be $999.50.
Ongoing costs Overnight
financing fees
An overnight financing fee is either added to or subtracted from your account whenever a position is left open overnight. The overnight financing fees are found in the instrument's details on the trading platform and it is charged per lot. Example 1 lot of the specific CFD’s underlying asset is defined as 10 contracts. The trade size is 3
lots. Opening Price is $1000. If the overnight financing fee is $20 per lot and the client
holds a position from Monday to Wednesday, the client will be charged $120 overnight
for financing fee i.e. 3lot × $20 financing fee × 2 overnights = $120 will be charged as
financing fee.
Griva Digeni & Kolonakiou 125, Grosvenor Tower, Ground Floor, 3107 Limassol, Cyprus
Phone: +80040015002 | Fax: +357 25 310 361 | Email: [email protected]
ITRADER.COM V3
KEY INFORMATION DOCUMENT- CFDs ON CRYPTOCURRENCIES Purpose
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, risks, costs, potential gains and losses of this product and to help you compare
it with other products.
Product
Name of Product: Contracts for Differences (CFDs) on Cryptocurrencies.
Provider: CFDs on Cryptocurrencies are offered by ITRADER, a trading name operated by Hoch Capital Ltd (the “Company”), a
Cypriot Investment Firm (“CIF”), authorised and regulated by the Cyprus Securities and Exchange Commission (“CySEC”) under
licence number 198/13. For more information, you can visit the Company’s websites, at www.itrader.com, www.hochcapital.com
or contact our support team via email at [email protected] or via phone at +80040015002.
This Key Information Document (“KID”) version was reviewed and updated on the 21st of June 2019 and you have the right to
request previous versions by contact us via email at [email protected].
What is this product?
CFDs on Cryptocurrencies are leveraged, derivative financial instruments not undertaken on a recognised exchange/regulated
market, rather they are undertaken Over the Counter ("OTC"). The client can speculate on the price movement (positive or
negative performance) of cryptocurrencies without actually investing in or owning the underlying asset, by buying and selling
contracts. For any CFD two prices are quoted: (a) the higher price (‘Ask’), at which the investor can buy (‘go long’) and (b) the lower
price (‘Bid’), at which the investor can sell (‘go short’). The difference between the two is the spread.
Objectives:
The objective of a CFD on Cryptocurrencies is to speculate on the performance of a cryptocurrency without actually investing in
or owning the cryptocurrency. You will achieve profit if your speculation on the performance (positive or negative performance)
was correct, otherwise you will suffer losses, with the difference between the opening price and closing price of the underlying
asset. Please note that when the equity (the sum of funds in the CFD trading account and the unrealised net profits of all open
CFD position(s) connected to that account) falls to less than half of the total initial margin used for all those open CFD position(s),
your trading positions will be closed in order to ensure that your trading equity will not fall below 50% of your margin used for all
your open trades.
Intended Retail Investor:
This product is for Retail clients with knowledge and/or experience of the characteristics of CFDs on Cryptocurrencies trading
including the main market factors that determine Cryptocurrencies fluctuations, the concept, effects and risks of leveraged trading,
ability to understand the risks involved including the risk of loss of their invested amounts. CFDs on Cryptocurrencies are
compatible with the needs of clients who seek short term capital gain and/or with a short-term investment horizon by investing
in highly liquid markets which can provide the benefit of quick pay-out. Clients should have a high-risk tolerance and be willing to
accept rapid price fluctuations and the specific risk of leverage in exchange for the opportunity of higher returns.
Term:
CFDs on Spot in Commodities do not have a pre-defined maturity date and they are therefore open-ended. It’s up to each individual
trader to decide the appropriate time to open and close his positions. However, each individual’s position will only be kept open
to the extent that he/she has available margin. Failure to deposit additional funds in order to meet margin requirement as a result
of negative price movement, may result in the CFD position being automatically closed.
What are the risks and what could I get in return?
Risk Indicator
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 value because of movements in the markets or because the Company is not able to pay you. The Company
has classified this product as 7 out of 7, which is the highest risk class. This rates the potential losses from future performance of
the product at a very high level. Trading risks are magnified by leverage. However, due to negative balance protection, your losses
RISK WARNING: You are about to purchase a product that is not simple and may be difficult to understand.
Higher risk Lower risk
Griva Digeni & Kolonakiou 125, Grosvenor Tower, Ground Floor, 3107 Limassol, Cyprus
Phone: +80040015002 | Fax: +357 25 310 361 | Email: [email protected]
ITRADER.COM V3
cannot exceed the amount invested. Trade only after you have acknowledged and accepted the risks. 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 on a Cryptocurrency in a currency which is different to the base currency
therefore, you will receive payments in a different currency, so the final return you will get depend on the exchange rate between
the two currencies. This risk is not considered in the indicator shown above.
Leverage trading: Leverage can magnify the profits as well as the losses. Losses arising as a result of price movements and failure
to deposit additional funds may result in the CFD being auto-closed.
Market risk: market fluctuations can impact the appreciation or depreciation of the asset value and can impact your trading result.
CFD trading requires you to maintain a certain level of funds in your account in order to open position(s) and to keep the position(s)
open. This is the initial margin, maintenance margin respectively. You will be able to open a position by depositing only a small
percentage of the notional value of the position, creating a leveraged position. Leverage can significantly magnify your gains and
losses. If the funds in your account decrease to the point that they will soon become insufficient to keep your position(s) open –
meaning that your equity is getting close to the total maintenance margin - a margin call or alert will be issued, asking you to
consider depositing additional funds. If you fail to deposit additional funds and the market continues to move against you, the
Company may close your position(s) (immediately and without notice) and you will realise any losses. However, due to negative
balance protection, your losses cannot exceed the amount invested.
Technical Risks: Since trading of the product depends on technology i.e. PC, mobile phone, internet failure and delays etc., you
are exposed to electronic disruptions, leading to delays in the opening and closing of a transaction, for which the Company shall
not be held liable. This product does not include any protection from future market performance, so you could lose some or all of
your trading balance. For more information on the Risks associated with trading the product, please see our Risk Disclosure
document.
Liquidity Risk: This is the financial risk that for a certain period of time an underlying asset cannot be traded quickly enough in the
market without impacting the market price. You acknowledge that some products offered by the Company may suffer from
liquidity strains due to adverse market conditions, and as such, the volatility may be reflected in a larger spread between the ASK
and BID prices, resulting in a change in the price of the product.
Cryptocurrencies are traded on non-regulated decentralized digital exchanges. This means that the price formation and price
movements of the Cryptocurrencies depend solely on the internal rules of the particular digital exchange, which may be subject
to change at any point in time and without notice, including the implementation of trading suspensions or other actions.
Cryptocurrencies are exposed to high intra-day price volatility, which may be substantially higher compared to other Financial
Instruments. This product does not include any protection from future market performance, so you could lose some or all of your
investment.
Performance Scenarios:
BUY (LONG) Performance Scenario
Closing Price (incl. spread)
Price Change
Profit/Loss SELL (SHORT) Performance Scenario
Closing Price (incl. spread)
Price Change
Profit/Loss
Favourable $ 6,720 12% (6720-6000) x 1 = $ 720 profit
Favourable $ 5,280.00 -12% (6000-5280) x 1 = $ 720 profit
Moderate $ 6,120 2.0% (6120-6000) x 1 = $ 120 profit
Moderate $ 5,880.0 -2.0% (6000-5880) x 1 = $ 120 profit
Unfavourable $ 5,820 -3% (5820-6000) x 1 = $-180 loss
Unfavourable $ 6,180 3% (6000-6180) x 1 = $180 loss
Stress $ 5,100 -15% (5100-6000) x 1 = $-900 loss
Stress $ 6,900 15% (6000-6900) x 1 = $-900 loss
The scenarios above are taking into consideration the client’s decision to buy/sell the underlying asset as per the above figures
and closing the trade on the same day. The potential profit and loss are based on the percentage change of the underlying asset
Indices CFD (held intraday)
Open Price (Cryptocurrency CFD): OP $ 6,000
Trade Size (per CFD) TS 1
Margin: M 50%
Margin Required (USD) MR = OP x TS x M $ 3,000
Notional Value of the Trade (USD) NVT = MR/M $ 6,000
Griva Digeni & Kolonakiou 125, Grosvenor Tower, Ground Floor, 3107 Limassol, Cyprus
Phone: +80040015002 | Fax: +357 25 310 361 | Email: [email protected]
ITRADER.COM V3
as described in the tables above. These scenarios illustrate how your investment could perform. You can compare them with other
products. The scenarios presented are an estimate of future performance based on evidence from the past on how the value of
this investment varies and they are not an exact indicator. What you get will vary depending on how the market performs and
how long you keep the investment/product. 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 figures shown include all costs of the product
itself but may not include all the costs that you pay to your advisor or distributor. The figures do not take into account your personal
tax situation, which may also affect how much you get back.
What will happen if the Company is unable to pay out?
The Company is a member of the Investor Compensation Fund (the “ICF”) which covers non-professional clients as defined in the Investor Compensation Fund Policy in circumstances when the Company is either unable to return to its covered clients funds owed to them and/or unable to return financial instruments to the covered clients which the Company holds or controls in its accounts on behalf of the clients. The maximum amount of compensation that a covered client can receive by the Fund is €20,000 (Euro Twenty Thousand) or 90% of the covered client’s claim, whichever is lower.
What are the costs?
Trading a CFD on an underlying Cryptocurrency incurs the following costs (the table shows the different types of cost categories
and their meaning):
How long should I hold it, and can I take money out early?
CFDs on Cryptocurrencies have no recommended holding period hence, they are intended mostly for short term trading. Provided that the Company is open for trading you can enter and exit positions at any time, as per the market’s trading hours. The Company shall proceed with the settlement of all trades (allocation of profits/losses) upon the execution and closure of the trade.
How can I complain?
If after consulting with a member of the Company’s support team, you are unable to obtain a satisfactory explanation to your inquiry, we welcome you to escalate your complaint by contacting our management team, by email, at [email protected]. You can also submit a formal complaint to the Company’s compliance department. In order to submit a formal complaint, you should include details and any supporting documentation on the matter, using the online form. Within five (5) business days from the day an official complaint has been received through the Company’s online form, we will send a written confirmation of the receipt of the complaint, a unique reference number that should be used when contacting the Company and the estimated time for receiving a final decision. For more information please refer to our complaint procedure.
If after filing a complaint with us, you are dissatisfied with our response to your complaint, you are entitled to refer the matter to
the Financial Ombudsman Service of the Republic of Cyprus.
Other Relevant information
In case 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 Documentation section of the Company’s website contains valuable information regarding your account, which you should
read, understand and acknowledge. You should ensure that you are familiar with the Terms and Conditions and all the policies
that apply to your account.
For any information not found in this KID or the Company’s website www.itrader.com please contact us at [email protected].
One-off entry
or exit costs Spread
The difference between the buy price and the sell price is the spread. This cost is realised each time you open and close a trade. For example, if the underlying asset is trading at $6,000our offer price (the price in which you can buy), might be $6000.50 and our bid price (the price at which you can sell), might be $5999.50.
Ongoing
costs
Overnight
financing
fees
An overnight financing fee is either added to or subtracted from your account whenever a position is left open overnight. The overnight financing fees are found in the instrument's details on the trading platform and it is charged per lot. Example 1 lot of the specific CFD’s underlying asset is defined as 1 contract. The trade size is 3 lots. Opening Price is $6,000. If the overnight financing fee is $20 per lot and the client holds a position from Monday to Wednesday, the client will be charged $120 overnight for financing fee i.e. 3(lots) x $20 (financing fee) x 2(overnights) = $120 will be charged as financing fee.
Griva Digeni & Kolonakiou 125, Grosvenor Tower, Ground Floor, 3107 Limassol, Cyprus
Phone: +80040015002 | Fax: +357 25 310 361 | Email: [email protected]
ITRADER.COM V3
KEY INFORMATION DOCUMENT- CFDs ON FUTURES IN COMMODITIES Purpose
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, risks, costs, potential gains and losses of this product and to help you
compare it with other products.
Product
Name of Product: Contract for Differences (CFDs) on Futures in Commodities.
Provider: CFDs on Futures in Commodities are offered by ITRADER, a trading name operated by Hoch Capital Ltd (the
“Company”), a Cypriot Investment Firm (the “CIF”), authorised and regulated by the Cyprus Securities and Exchange Commission
(the “CySEC”) under licence number 198/13. For more information, you can visit the Company’s websites at www.itrader.com,
www.hochcapital.com or contact our support team via email at [email protected] or via phone +80040015002.
This Key Information Document (“KID”) version was reviewed and updated on the 21st of June 2019 and you have the right to
request previous versions by contacting us via email at [email protected].
What is this product?
Futures means a future contract which gives the buyer the obligation to purchase a specific asset, and the seller to sell and
deliver the asset at a specific future date, unless such contract is terminated prior to such date for any reason. However, the
product provided by the company is CFD on Futures in Commodities are leveraged financial instruments settled in cash and not
undertaken on a recognised exchange/regulated market, rather they are traded Over the Counter ("OTC"). The client speculates
on the price movement on rising or falling prices on the underlying commodity without actually investing in or owning these
commodities, by buying and selling the CFD contracts. The price of the CFD on Futures in Commodities is derived from the price
of the underlying asset which is the futures’ price. For any CFD two prices are quoted: (a) the higher price (‘Ask’), at which the
investor can buy (‘go long’) and (b) the lower price (‘Bid’), at which the investor can sell (‘go short’). The difference between the
two is called the spread.
Objectives:
The objective of a CFD on Futures in Commodities is to speculate on the performance of a commodity without actually investing
in or owning the real commodity. You will achieve profit if your speculation on the performance (positive or negative
performance) was correct, otherwise you will suffer losses with the difference between the opening price and closing price of
the underlying asset. Please note that when the equity (the sum of funds in the CFD trading account and the unrealised net
profits of all open CFD position(s) connected to that account) falls to less than half of the total initial margin used for all those
open CFD position(s), your trading position(s) will be closed in order to ensure that your trading equity will not fall below 50% of
your margin used for all your open trades.
Intended Retail Investor:
This product is for Retail clients with knowledge and/or experience of the characteristics of CFDs on Futures in Commodities
trading, including the main market factors that determine commodities fluctuations, the concept, effects and risks of leveraged
trading, ability to understand the risks involved including the risk of loss of their invested amounts. CFDs on Futures in
Commodities are compatible with the needs of clients who seek short term capital gain and/or with a short-term investment
horizon by investing in highly liquid markets which can provide the benefit of quick pay-out. Clients should have a high-risk
tolerance and be willing to accept rapid price fluctuations and the specific risk of leverage in exchange for the opportunity of
higher returns.
Term:
CFDs on Futures in Commodities have a pre-defined maturity date and they are therefore not open-ended. The expiry date of a
specific CFD on Futures in Commodity is available to be viewed in the Company’s platform. CFDs on Futures in Commodities at
their expiry cannot be rolled over and if your positions are still open at the expiry date, they will be closed at the last available
market price on the expiry date. It is up to each individual trader to decide on the appropriate time to open and close his
positions. However, each individual’s position will only be kept open to the extent that he/she has available margin. Failure to
deposit additional funds in order to meet margin requirement as a result of negative price movement, may result in the CFD
position being automatically closed.
What are the risks and what could I get in return?
Risk Indicator
RISK WARNING: You are about to purchase a product that is not simple and may be difficult to understand.
Griva Digeni & Kolonakiou 125, Grosvenor Tower, Ground Floor, 3107 Limassol, Cyprus
Phone: +80040015002 | Fax: +357 25 310 361 | Email: [email protected]
ITRADER.COM V3
Risk Indicator
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 value because of movements in the markets or because the Company is not able to pay you. The
Company has classified this product as 7 out of 7, which is the highest risk class. This rates the potential losses from future
performance of the product at a very high level. Trading risks are magnified by leverage. However, due to negative balance
protection, your losses cannot exceed the amount invested. Trade only after you have acknowledged and accepted the risks.
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 on a commodity in a currency which is different to the base currency,
therefore, you may receive payments in a different currency, so the final return you will get depends on the exchange rate
between the two currencies. This risk is not considered in the indicator shown above.
Leverage trading: Leverage can magnify the profits as well as the losses arising as a result of price movements and failure to
deposit additional funds may result in the CFD being auto-closed.
Market risk: market fluctuations can impact the appreciation or depreciation of the asset value and can impact your trading
result.
CFD trading requires you to maintain a certain level of funds in your account in order to open position(s) and to keep the
position(s) open. This is the initial margin, maintenance margin respectively. You will be able to open a position by depositing
only a small percentage of the notional value of the position, creating a leveraged position. Leverage can significantly magnify
your gains and losses. If the funds in your account decrease to the point that they will soon become insufficient to keep your
position(s) open – meaning that your equity is getting close to the total maintenance margin - a margin call or alert will be issued,
asking you to consider depositing additional funds. If you fail to deposit additional funds and the market continues to move
against you, the Company may close your position(s) (immediately and without notice) and you will realise any losses. However,
due to negative balance protection, your losses cannot exceed the amount invested.
Technical Risks: Since trading of the product depends on technology i.e. PC, mobile phone, internet failure and delays etc., you
are exposed to electronic disruptions, leading to delays in the opening and closing of a transaction, for which the Company shall
not be held liable. This product does not include any protection from future market performance, so you could lose some or all
of your trading balance. For more information on the Risks associated with trading the product, please see our Risk Disclosure
document.
Liquidity Risk: This is the financial risk that for a certain period of time an underlying asset cannot be traded quickly enough in
the market without impacting the market price. You acknowledge that some products offered by the Company may suffer from
liquidity strains due to adverse market conditions, and as such, the volatility may be reflected in a larger spread between the
ASK and BID prices, resulting in a change in the price of the product.
Performance Scenarios:
Commodity CFD (held intraday)
Open Price (commodity CFD): OP $50
Trade Size (per CFD) TS 1000
Margin: M 10%
Margin Required (USD) MR = OP x TS x M $5,000
Notional Value of the Trade (USD) NVT = MR/M $50,000
BUY (LONG) Performance Scenario
Closing Price (inc. spread)
Price Change
Profit/Loss Sell (Short) Performance Scenario
Closing Price (inc. spread)
Price Change
Profit/Loss
Favourable 50.5$ 1% (50.5-50) x 1000 = $500 profit
Favourable 48.5$ -3% (50-48.5) x 1000 = $1,500 profit
Moderate 50.25$ +0,5% (50.25-50) x 1000 = $250 profit
Moderate 49.75$ 0,5% (50-49.75) x 1000 = $250 profit
Unfavourable 49.5$ -1% (49.5-50) x 1000 = $-500 loss
Unfavourable 50.5$ 1% (50-50.5) x 1000 = $-500 loss
Stress 47.5$ -5% (47.5-50) x 1000 = $-2,500 loss
Stress 52.5$ 5% (50-52.5) x 1000 = $-2500 loss
Higher risk Lower risk
Griva Digeni & Kolonakiou 125, Grosvenor Tower, Ground Floor, 3107 Limassol, Cyprus
Phone: +80040015002 | Fax: +357 25 310 361 | Email: [email protected]
ITRADER.COM V3
The scenarios above are taking into consideration the client’s decision to buy/sell the underlying asset as per the above figures
and closing the trade at the same date. The potential profit and loss are based on the percentage change of the underlying asset
as per the tables above. These scenarios illustrate how your investment could perform. You can compare them with other
products. The scenarios presented are an estimate of future performance based on evidence from the past on how the value of
this investment varies and they are not an exact indicator. What you get will vary depending on how the market performs and
how long you keep the investment/product. 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 figures shown include all
costs of the product itself but may not include all the costs that you pay to your advisor or distributor. The figures do not take
into account your personal tax situation, which may also affect how much you get back.
What will happen if the Company is unable to pay out?
The Company is a member of the Investor Compensation Fund (the “ICF”) which covers non-professional clients as defined in the Investor Compensation Fund Policy in circumstances when the Company is either unable to return to its covered clients funds owed to them and/or unable to return financial instruments to the covered clients which the Company holds or controls in its accounts on behalf of the clients. The maximum amount of compensation that a covered client can receive by the Fund is €20,000 (Euro Twenty Thousand) or 90% of the covered client’s claim, whichever is lower.
What are the costs?
Trading a CFD on an underlying commodity future incurs the following costs
(the table shows the different types of cost categories and their meaning):
How long should I hold it, and can I take money out early?
CFDs on Futures in Commodities have no recommended holding period hence, they are intended mostly for short term trading. Provided that the Company is open for trading you can enter and exit positions at any time, as per the market’s trading hours. The Company shall proceed with the settlement of all trades (allocation of profits/losses) upon the execution and closure of the trade.
How can I complain?
If after consulting with a member of the Company’s support team, you are unable to obtain a satisfactory explanation to your inquiry, we welcome you to escalate your complaint by contacting our management team, by email, at [email protected]. You can also submit a formal complaint to the Company’s compliance department. In order to submit a formal complaint, you should include details and any supporting documentation on the matter, using the online form. Within five (5) business days from the day an official complaint has been received through the Company’s online form, we will send a written confirmation of the receipt of the complaint, a unique reference number that should be used when contacting the Company and the estimated time for receiving a final decision. For more information please refer to our complaint procedure.
If after filing a complaint with us, you are dissatisfied with our response to your complaint, you are entitled to refer the matter
to the Financial Ombudsman Service of the Republic of Cyprus ("FOSRC").
Other Relevant information
In case 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 Documentation section of the Company’s website contains valuable information regarding your account, which you should
read, understand and acknowledge. You should ensure that you are familiar with the Terms and Conditions and all the policies
that apply to your account.
For any information not found in this KID or the Company’s website www.itrader.com please contact us at [email protected].
One-off entry
or exit costs
Spread
The difference between the buy price and the sell price is the spread. This cost is realised each time you open and close a trade. For example, if the underlying asset is trading at $49.75, our offer price (the price in which you can buy), might be $50 and our bid price (the price at which you can sell), might be $49.5.
Ongoing costs Overnight
financing fees
An overnight financing fee is either added to or subtracted from your account whenever a position is left open overnight. The overnight financing fees are found in the instrument's details on the trading platform and it is charged per lot. Example 1 lot of the specific CFD’s underlying asset is defined as 10 contracts. The trade size is 3
lots. Opening Price is $50. If the overnight financing fee is $20 per lot and the client holds
a position from Monday to Wednesday, the client will be charged $120 overnight for
financing fee i.e. 3 lots x $20 financing fee x 2 overnights = $120will be charged as
financing fee.
Griva Digeni & Kolonakiou 125, Grosvenor Tower, Ground Floor, 3107 Limassol, Cyprus
Phone: +80040015002 | Fax: +357 25 310 361 | Email: [email protected]
ITRADER.COM V3
KEY INFORMATION DOCUMENT- CFDs ON STOCKS
Purpose
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, risks, costs, potential gains and losses of this product and to help you compare
it with other products.
Product
Name of Product: Contracts for Differences (CFDs) on Stocks.
Provider: CFDs on stocks are offered by ITRADER, a trading name operated by Hoch Capital Ltd (the “Company”), a Cypriot
Investment Firm (the “CIF”), authorised and regulated by the Cyprus Securities and Exchange Commission (the “CySEC”) under
licence number 198/13. For more information, you can visit the Company’s website or via phone +80040015002 at
www.itrader.com, www.hochcapital.com or contact our support team via email at [email protected] or via phone at
+80040015002.
This Key Information Document (“KID”) version was reviewed and updated on the 21st of June 2019 and you have the right to request
previous versions by contact us via email at [email protected].
What is this product?
CFDs on Stocks are leveraged financial instruments settled in cash and not undertaken on a recognised exchange/regulated market,
rather they are traded Over the Counter ("OTC"). The client speculates on the price movement on rising or falling prices on the
underlying stock without actually investing in or owning these stocks, by buying and selling the CFD contracts. The price of the CFD
on stocks is derived from the price of the underlying asset which is the current stock price. For any CFD, two prices are quoted: (a)
the higher price (‘Ask’), at which the investor can buy (‘go long’) and (b) the lower price (‘Bid’), at which the investor can sell (‘go
short’). The difference between the two is called the spread.
Objectives:
The objective of a CFD on stocks is to speculate on the performance of an underlying stock without actually owning this stock. You
will achieve profit if your speculation on the performance (positive or negative performance) was correct, otherwise you will suffer
losses with the difference between the opening price and closing price of the underlying asset. Please note that when the equity
(the sum of funds in the CFD trading account and the unrealised net profits of all open CFD position(s) connected to that account)
falls to less than half of the total initial margin used for all those open CFD position(s), your trading position(s) will be closed in order
to ensure that your trading equity will not fall below 50% of your margin used for all your open trades.
Intended Retail Investor:
This product is for Retail clients with knowledge and/or experience of the characteristics of CFDs on stocks trading, including the
main market factors that determine stock fluctuations, the concept, effects and risks of leveraged trading, ability to understand the
risks involved including the risk of loss of their invested amounts. CFDs on Stocks are compatible with the needs of clients who seek
short term capital gain and/or with a short-term investment horizon by investing in highly liquid markets which can provide the
benefit of quick pay-out. Clients should have a high-risk tolerance and be willing to accept rapid price fluctuations and the specific
risk of leverage in exchange for the opportunity of higher returns.
Term:
CFDs on Stocks do not have a pre-defined maturity date and they are therefore open-ended. It’s up to each individual trader to
decide on the appropriate time to open and close his positions. However, each individual’s position will only be kept open to the
extent that he/she has available margin. Failure to deposit additional funds in order to meet margin requirement as a result of
negative price movement, may result in the CFD position being automatically closed.
What are the risks and what could I get in return?
Risk Indicator
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 value because of movements in the markets or because the Company is not able to pay you. The Company has
classified this product as 7 out of 7, which is the highest risk class. This rates the potential losses from future performance of the
RISK WARNING: You are about to purchase a product that is not simple and may be difficult to understand.
Higher risk Lower risk
Griva Digeni & Kolonakiou 125, Grosvenor Tower, Ground Floor, 3107 Limassol, Cyprus
Phone: +80040015002 | Fax: +357 25 310 361 | Email: [email protected]
ITRADER.COM V3
product at a very high level. Trading risks are magnified by leverage. However, due to negative balance protection, your losses
cannot exceed the amount invested. Trade only after you have acknowledged and accepted the risks. 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 on stocks in a currency which is different to the base currency therefore,
you will receive payments in a different currency, so the final return you will get depend on the exchange rate between the two
currencies. This risk is not considered in the indicator shown above.
Leverage trading: Leverage can magnify the profits as well as the losses. Losses arising as a result of price movements and failure to
deposit additional funds may result in the CFD being auto-closed.
Market risk: market fluctuations can impact the appreciation or depreciation of the asset value and can impact your trading result.
CFD trading requires you to maintain a certain level of funds in your account in order to open position(s) and to keep the position(s)
open. This is the initial margin, maintenance margin respectively. You will be able to open a position by depositing only a small
percentage of the notional value of the position, creating a leveraged position. Leverage can significantly magnify your gains and
losses. If the funds in your account decrease to the point that they will soon become insufficient to keep your position(s) open –
meaning that your equity is getting close to the total maintenance margin - a margin call or alert will be issued, asking you to consider
depositing additional funds. If you fail to deposit additional funds and the market continues to move against you, the Company may
close your position(s) (immediately and without notice) and you will realise any losses. However, due to negative balance protection,
your losses cannot exceed the amount invested.
Technical Risks: Since trading of the product depends on technology i.e. PC, mobile phone, internet failure and delays etc., you are
exposed to electronic disruptions, leading to delays in the opening and closing of a transaction, for which the Company shall not be
held liable. This product does not include any protection from future market performance, so you could lose some or all of your
trading balance. For more information on the Risks associated with trading the product, please see our Risk Disclosure document.
Liquidity Risk: This is the financial risk that for a certain period of time an underlying asset cannot be traded quickly enough in the
market without impacting the market price. You acknowledge that some products offered by the Company may suffer from liquidity
strains due to adverse market conditions, and as such, the volatility may be reflected in a larger spread between the ASK and BID
prices, resulting in a change in the price of the product.
Performance Scenarios:
Stock CFD (held intraday)
Open Price (Stock CFD): OP $ 1,600
Trade Size (per CFD) TS 10
Margin: M 20%
Margin Required (usd) MR = OP x TS x M $ 3,200
Notional Value of the Trade (usd) NVT = MR/M $ 16,000
BUY (LONG) Performance Scenario
Closing Price (incl. spread)
Price Change
Profit/Loss SELL (SHORT) Performance Scenario
Closing Price (incl. spread)
Price Change
Profit/Loss
Favourable $ 1,648.00
3% (1648-1600) x 10 = $480 profit
Favourable $ 1,552.00 -3% (1600-1552) x 10 = $ 480 profit
Moderate $ 1,608.0
0.5% (1608-1600) x 10 = $80 profit
Moderate $ 1,592.0 -0.5% (1600-1592) x 10 = $80 profit
Unfavourable $ 1,584.0
-1% (1584-1600) x 10 = $-160 loss
Unfavourable $ 1,616 1% (1600-1616) x 10 = $-160 loss
Stress $ 1,520.0
-5% (1520-1600) x 10 = $-800 loss
Stress $ 1,680 5% (1600-1680) x 10 = $-800 loss
The scenarios above are taking into consideration the client’s decision to buy/sell the underlying asset as per the above figures and
closing the trade on the same day. The potential profit and loss are based on the percentage change of the underlying asset as
described in the tables above. These scenarios illustrate how your investment could perform. You can compare them with other
products. The scenarios presented are an estimate of future performance based on evidence form the past on how the value of this
investment varies and are not an exact indicator. What you get will vary depending on how the market performs and how long you
keep the investment/product. 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 figures shown do not include all costs that you pay, as indicated
below. The figures do not take into account your personal tax situation, which may also affect how much you get back.
Griva Digeni & Kolonakiou 125, Grosvenor Tower, Ground Floor, 3107 Limassol, Cyprus
Phone: +80040015002 | Fax: +357 25 310 361 | Email: [email protected]
ITRADER.COM V3
What will happen if the Company is unable to pay out?
The Company is a member of the Investor Compensation Fund (the “ICF”) which covers non-professional clients as defined in the Investor Compensation Fund Policy in circumstances when the Company is either unable to return to its covered clients funds owed to them and/or unable to return financial instruments to the covered clients which the Company holds or controls in its accounts on behalf of the clients. The maximum amount of compensation that a covered client can receive by the Fund is €20,000 (Euro Twenty Thousand) or 90% of the covered client’s claim, whichever is lower.
What are the costs?
Trading a CFD on an underlying stock incurs the following costs (the table shows the different types of cost categories and their
meaning):
How long should I hold it, and can I take money out early?
CFDs on stocks have no recommended holding period hence, they are intended mostly for short term trading. Provided that the Company is open for trading you can enter and exit positions at any time, as per the market’s trading hours. The Company shall proceed with the settlement of all trades (allocation of profits/losses) upon the execution and closure of the trade.
How can I complain?
If after consulting with a member of the Company’s support team, you are unable to obtain a satisfactory explanation to your inquiry, we welcome you to escalate your complaint by contacting our management team, by email, at [email protected]. You can also submit a formal complaint to the Company’s compliance department. In order to submit a formal complaint, you should include details and any supporting documentation on the matter, using the online form. Within five (5) business days from the day an official complaint has been received through the Company’s online form, we will send a written confirmation of the receipt of the complaint, a unique reference number that should be used when contacting the Company and the estimated time for receiving a final decision. For more information please refer to our complaint procedure.
If after filing a complaint with us, you are dissatisfied with our response to your complaint, you are entitled to refer the matter to
the Financial Ombudsman Service of the Republic of Cyprus.
Other Relevant information
In case 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 Documentation section of the Company’s website contains valuable information regarding your account, which you should read,
understand and acknowledge. You should ensure that you are familiar with the Terms & Conditions and all the policies that apply
to your account.
For any information not found in this KID or the Company’s website www.itrader.com please contact us at [email protected].
One-off entry or exit
costs Spread
The difference between the buy price and the sell price is the spread. This cost is realised each time you open and close a trade. For example, if the underlying asset is trading at $1600, our offer price (the price in which you can buy), might be $1600.50 and our bid price (the price at which you can sell), might be $1599.50.
Ongoing costs Overnight
financing fees
An overnight financing fee is either added to or subtracted from your account whenever a position is left open overnight. The overnight financing fees are found in the instrument's details on the trading platform and it is charged per lot. Example 1 lot of the specific CFD’s underlying asset is defined as 10 contracts. The trade
size is 3 lots. Opening Price is $1600. If the overnight financing fee is $20 per lot
and the client holds a position from Monday to Wednesday, the client will be
charged $120 overnight for financing fee i.e. 3lot × $20 financing fee × 2
overnights = $120 will be charged as financing fee.