SCOPE OF THE NOTICE
1.1Oriental Wealth Markets Limited (referred to as ‘Oriental Wealth Markets Limited’, the ‘Firm’, ‘us’, ‘we’ and ‘our’) provides you with this ‘Risk Disclosure Notice’ (the ‘Notice’) to help you understand the risks that might arise when trading Contracts for Difference (‘CFDs’) and/or Spread Bets. However, you need to bear in mind that the Notice does not contain all the risks and aspects involved in trading said instruments. The Client (referred to as the ‘Client’, ‘you’, ‘your’ and ‘yourself’) should carefully read the Notice in conjunction with the ‘Client Agreement’, and the documentation/ information available to you through our Website.
1.2 You need to ensure that any decision to engage in trading CFDs and/or Spread Bets is made on an informed basis and in light of your knowledge and experience as well as to your personal circumstances (including but not limited to your financial position). In addition, you need to ensure that you understand the nature of CFDs and Spread Bets, and the extent of all risks and aspects involved in trading these instruments.
1.3Please note that CFDs and Spread Bets are leveraged financial products and therefore as such, trading these instruments involves a high risk of loss as price movements are influenced by the amount of leverage the client is using. For example, if a client is using 30 times leverage a movement of 0.5% will result in a gain or a loss of 15%. Nonetheless, as a result of the ‘Negative Balance Protection’ (‘NBP’) you may not lose more than your initial investment.
1.4Trading CFDs and/or Spread Bets is not appropriate for all investors. Under no circumstances, you should risk more than you are prepared to lose.
1.5For any capitalised term, which has not been defined in the Notice, please refer to Schedule A (‘Glossary’) of the ‘Client Agreement’.
APPROPRIATENESS ASSESSMENT
2.1 When processing your ‘Account Opening Form’ Oriental Wealth Markets Limited carries out an assessment of your
appropriateness to trade CFDs and/or Spread Bets and determines, based on information you provide us with, if you have sufficient knowledge and experience to understand the risks involved in trading leveraged products. We will inform you of the results of our assessment, but this does not relieve you of the need to carefully consider whether to trade with us. If we warn you that trading CFDs and/or Spread Bets may not be appropriate for you, then you should refrain from trading CFDs and/or Spread Bets until you attain sufficient knowledge and experience, for example you may trade on a demo account prior to trading in a live environment and you acquainted yourself sufficiently with the relevant risks.
3. NATURE OF CFDs AND SPREAD BETS
CFDs are agreements to exchange the difference in value of a particular instrument or currency between the time at which the agreement is entered into and the time at which it is closed. CFDs allow the Firm’s Clients to replicate the economic effect of trading in financial instruments without requiring actual ownership of those assets; a full list of the CFDs on offer by Oriental Wealth Markets Limited is available on our Website.
Spread Bets are a type of contract whereby a Client can speculate on the price movement of a financial instrument by placing a buy or sell order which will pay out a pre-determined amount per point gained. This means that for every point that the price of the financial instrument moves in your favour, you will gain multiples of that pre-determined amount (also known as ‘stake’). Conversely, if the price of the financial instrument moves against you, you will lose multiples of the stake. Like with the case of CFDs, with Spread Betting you can replicate the economic effect of trading in financial instruments without owning the underlying assets.
Profits derived from Spread Betting are free of capital gains tax and stamp duty for UK residents only. Tax laws are subject to change and depend on individual circumstances. You may wish to seek advice from a tax adviser if you are unsure of your circumstances.
CFDs and Spread Bets are derivative products traded off-exchange (or Over-the-Counter (‘OTC’)); this means Oriental Wealth Markets Limited is always the counterparty to the Client trades and any CFD and/or Spread Bet trades entered into with the Firm, can only be closed with us. Your ability to open and/or close trades is dependent on the availability of our trading platform(s).
You understand that you are not entitled to the physical delivery of the underlying instrument (or reference instrument) of the CFDs and/or Spread Bets you are trading, and you have no rights in the underlying instrument (such as voting rights in case you are trading CFDs and/or Spread Bets on shares).
CFDs and/or Spread Bets fluctuate in value during the day; the price movements of CFDs and/or Spread Bets are determined by a number of factors including but not limited to availability of market information.
PRICES AND COST
4.1 The prices generated by our trading platform(s) are derived from the prices of the relevant
underlying instruments, which the Firm obtains from third party liquidity/ price providers. The prices of CFDs and/or Spread Bets that you trade with us include a mark-up; this means thatthe spreads offered by us comprise of (i) the raw spreads received from liquidity/ price provider(s) and (ii) a mark-up (where applicable).
4.2For trading certain CFDs and/or Spread Bets, the Client may be required to pay a commission and/or other fees; these instances are described in detail in our Website. For all type of CFDs and/or Spread Bets offered by the Firm, the commission (if applicable) and financing/ overnight fees are not incorporated into the Firm’s quoted prices and are instead charged explicitly to the Client Account(s). In the case of financing/ overnight fees, the value of opened positions in some types of financial instruments is increased or reduced by a daily financing fee ‘swap’ throughout the life of the trade. The financing fees are based on prevailing market interest rates. From Mondays to Friday swap is charged once for every business day and on Wednesday swap is charged in triple size in order to account for the weekend; details of daily financing/ overnight fees applied, are available in our Website.
4.3You should not fund your Account using money obtained from any credit facility (including bank loan or otherwise). You should understand that your overall risks will be significantly increased. For instance, if you incur a loss on your trades, you will still have to repay any amount borrowed plus any interest or other costs. Therefore, you shall never finance any trades on such borrowed money, and you should never rely on being able to profit on any trade, in order to repay such amounts.
5. MARKET CONDITIONS, REQUIRED MARGIN, LEVERAGE AND STOP-OUT LEVELS
5.1Trading CFDs and Spread Bets enables you to use leverage to open a trade by depositing a fraction of the total trade value; this means that a relatively small market movement may lead to a proportionately much larger movement in the value of your trade. For margin calculation purposes, the leverage level used will be the lower of: (i) the Account or (ii) symbol traded. This logic applies on all our trading platforms.
5.2 Financial markets may fluctuate rapidly to reflect events that are outside the control of the
Firm and/or your control; as a result, prices will become volatile. One form of price volatility is ‘gapping’, which occurs when there is a sudden shift in prices from one level to another. This can be caused, for example by unexpected economic events or market announcements, within or outside trading hours. Consequently, Oriental Wealth Markets Limited may be unable to execute your instructions at the requested price. In addition, if prices move against you, this will have a direct and real time impact on your trades, which may be automatically stopped-out. It is possible that you all your trades will be stopped-out; not just the ones that are loss making.
5.4You should note that any changes made to your leverage level, on an already traded Account, can immediately affect your open positions and may result in a stop-out.
5.5It is your responsibility to monitor the required margin of your open positions and in order to avoid a stop-out you may have to fund your Account.
6. FOREIGN EXCHANGE AND OTHER RELATED RISKS
You will be impacted by foreign exchange movements, if you are trading in a product that is denominated in a currency other than the currency of your Account. Any currency conversion calculations are provided by the Firm to the Client in the currency in which the Client account is denominated and the currency of the relevant instrument, using the cross spot rate.
Your capacity to trade CFDs and Spread Bets may also be affected as a result of changes in the legal, regulatory, taxation environment and/or other.
7. TECHNICAL RISKS
7.1 We try to generate prices continuously and provide you with access* to our trading platforms
throughout the trading sessions as indicated on our Website. However, there are instances where this is not possible; for example, instances of poor telecommunication/ internet connectivity, system errors and outages and/or other factors. The above may cause prices to change between the time an order is placed and the time the order has been received by the Firm. In addition, these technical risks may significantly impact the execution of your orders.
* Access to our trading platforms includes access via mobile applications.
8 NO ADVICE
8.1Oriental Wealth Markets Limited may, from time to time and as often as it deems appropriate, issue and/or distribute third party material (the ‘Material’), which contains information including but not limited to the conditions of the financial markets, posted through our Website and other media and/or received by you. It should be noted that the Material is considered to be marketing communication only and does not contain, and should not be construed as containing, investment advice and/or an investment recommendation and/or, an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the Client following an assessment by him/herself of their situation. Oriental Wealth Markets Limited makes no representation and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any employee of Oriental Wealth Markets Limited, a third party or otherwise. The Material is not prepared in accordance with legal requirements promoting the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. All expressions of opinion included in the Material are subject to change without notice. Any opinions made may be personal to the author and may not reflect the opinions of Oriental Wealth Markets Limited.
8.2Oriental Wealth Markets Limited does not provide investment, financial, legal, tax, regulatory or other advice relating to investments or trading in financial instruments. Any material or information or other features, which may be provided to you through our Website, trading platforms, marketing or training events or otherwise, is generic and shall not be treated as advice appropriate for you or based on a consideration of your personal circumstances. You should seek independent professional advice from a suitably qualified adviser, if necessary, prior to engaging in trading with us.
9 PAST PERFORMANCE
9.1Past performance, simulation or prediction of any financial instruments does not constitute an
indication of future results. You should note that the value of your investment can decrease (as well as increase) as the market price of the underlying asset may fluctuate downwards (or upwards).
