CFD AND SPOT FOREX TERMS: DEPOSIT ACCOUNTS

Transcription

1 1. Structure 1.1 When we engage in cfd r spt frex trading with yu, we d s n the basis f: - ur General Terms; these terms, i.e. ur CFD and Spt Frex Terms. 1.2 The CFD and Spt Frex Terms deal with matters that are specific t cfd r spt frex trading. The General Terms cntain terms that apply generally t spread bets, spt frex trading and cfds. 2. Definitins 2.1 Wrds with capital letters have particular meanings as defined in the General Terms and in clause Initial Margin 3.1 Initial Margin is due t GFT Glbal Markets n each pening cfd r spt frex trade yu place. Initial Margin must be maintained in respect f all pen psitins. In additin if yu place a trade n a market rder basis (as referred t in 3 rd bullet pint f clause 7.4 f the General Terms), Initial Margin is due when we accept that trade and when we execute that trade. 3.2 Initial Margin is calculated using the IM Factr, as fllws: - fr cfd trades: (trade size multiplied by GFT Price) multiplied by IM Factr (fr the trade yu wish t place, r have placed); fr spt frex trades: trade size multiplied by IM Factr (fr the trade yu have placed r wish t place). Nte that: - if yu place a trade n a direct deal basis (as referred t in the 3 rd bullet pint f clause 7.4 f the General Terms), Initial Margin will be calculated when we accept yur trade based n the GFT Price and IM Factr n acceptance; if yu place a trade n a market rder basis (as referred t in the 3 rd bullet pint f clause 7.4 f the General Terms), Initial Margin will be calculated when we accept yur trade based n the GFT Price and IM Factr n acceptance; Initial Margin will be calculated when we execute yur trade based n the GFT Price and IM Factr n executin; in relatin t pen psitins, Initial Margin will be calculated based n the then current GFT Price and IM Factr f the trade yu have placed. 3.3 Please refer t the Market Infrmatin Sheets t ascertain the relevant IM Factr fr any given cfd r spt frex Market. 3.4 Yu must make sure yu knw hw Initial Margin is calculated and the relevant IM Factr fr the cfd r spt frex trade yu prpse t place. If yu are in any dubt, please call ur dealing desk r Custmer Services Team. 3.5 GFT Glbal Markets can: - waive Initial Margin in relatin t any particular cfd r spt frex trade; vary IM Factrs. See clauses 23.1, 29.1, 30.1 and 32.1 f the General Terms and nte that the new IM Factr applies t pen psitins s additinal Initial Margin may becme due t maintain pen psitins. 4. Minimum and maximum trade size 4.1 There are limits n the trade size f any cfd r spt frex trade yu wish t place, as fllws: - minimum size: yur trade size must at least be equal t the minimum trade size we set; maximum size: yur trade size cannt be mre than: - page 1 / 7

2 the maximum trade size we set; r if lwer, the maximum trade size calculated as fllws: - Current Psitin divided by (GFT Price multiplied by IM Factr fr the trade yu wish t place). Nte: - if yu place a trade n a direct deal basis (as referred t in the 3 rd bullet pint f clause 7.4 f the General Terms), minimum and maximum trade sizes must be cmplied with when we accept yur trade (and maximum trade size is calculated using the GFT Price n acceptance); if yu place a trade n a market rder basis (as referred t in the 3 rd bullet pint f clause 7.4 f the General Terms), minimum and maximum trade sizes must be cmplied with when we accept yur trade and when we execute yur trade. In this case maximum trade size is calculated using the GFT Price n acceptance and then using the GFT Price n executin. 4.2 All the infrmatin yu need t calculate yur Current Psitin is available frm the fllwing surces. These surces als set ut IM Factrs and minimum and maximum trade sizes:- 4.3 We can: - DealBk. In particular yu need t access yur Accunt t ascertain yur Current Psitin; the Market Infrmatin Sheets, lcated at change minimum and maximum trade sizes, see clauses 23.1, 29.1, 30.1 and 32.1 f the General Terms; waive any minimum and maximum trade sizes. 4.4 Yu must make sure yu knw the current IM Factr and minimum and maximum trade sizes applicable t any cfd r spt frex trade yu wish t place. Yu must als ensure yu understand hw t calculate maximum trade sizes. If yu are in any dubt, please call ur dealing desk r ur Custmer Services Team. 4.5 If the maximum trade size is nil r less yu will nt be permitted t trade unless yu depsit funds in yur Accunt, s that there are sufficient funds in yur Accunt t enable yu t place the trade. 4.6 If yu trade the maximum trade size (r mre) n any particular Market any adverse Market mvement may result in Variatin Margin becming due. See clause Rll-Over f Spt Frex Trades 5.1 Subject t clause 5.4, pen spt frex trades rll-ver n a daily basis at 20: Subject t clause 5.4, spt frex trades rll-ver as fllws: - the riginal trade is clsed (at the relevant GFT Price) and due fr settlement; a new spt frex trade is pened (in the same Market, at the same time that the riginal spt frex trade is clsed), at the relevant GFT Price applicable t spt frex trades; GFT Glbal Markets UK uses the Tm/Next swap rate as the bench mark fr these rll-vers and therefre any pening spt frex trade (i.e. as per the 2 nd bullet pint abve) struck after 20:00 n any f ur trading days (fr the relevant Market) will be subject t a new value date; any Guaranteed Stp Lss Order that was attached t the spt frex trade that is being rlled ver is autmatically cancelled and ceases t have effect when that riginal trade is clsed (as referred t abve). Hwever, when we pen a new spt frex trade (as abve) we will attach t that new trade a new Guaranteed Stp Lss Order. The level at which the new Guaranteed Stp Lss Order will be pened will reflect the distance between the spt frex trade that has been clsed (as abve) and the Guaranteed Stp Lss Order that was attached t it (i.e. the distance at the time f clsure). 5.3 N cmmissin is charged n the rll-ver f a spt frex trade. 5.4 Despite the prvisins f clause 5.1, we can refuse t rll-ver a spt frex trade if: - the funds in yur Accunt are insufficient t enable that trade t rll-ver (as per clause 5.2) (taking int accunt, fr example, Initial Margin, trade sizes and all ther requirements relating t placing a trade). If yu have pened mre than ne spt frex trade and the funds in yur Accunt are sufficient t allw sme t rll-ver, but nt thers, then nne f yur spt frex trades will rll-ver, they will all be clsed; fr any ther reasn we are entitled t refuse t pen a trade fr yu, see fr example clause 7.6 f the General Terms. If we d refuse t rll-ver a spt frex trade, we will clse that trade at the time referred t in clause 5.1 and at the relevant GFT Price. page 2 / 7 NOV 2007 v2

3 6. Financing Charges 6.1 A daily financing charge is applied in respect f cfd trades relating t cash indices, freign exchange, spt metals and individual equities. The financing charge is levied fr each day that the trade remains pen (including weekends and public hlidays). The financing charge is applied t all pen psitins at 22:00 n each day. 6.2 In the case f cfd trades relating t individual equities and cash indices, the financing charge is debited frm yur Accunt in the case f lng cfd trades and credited t yur Accunt in the case f shrt cfd trades. In the case f cfd trades relating t freign exchange if the first currency has a higher interest rate, then yu are credited financing fr running a lng psitin and debited financing fr running a shrt psitin. If the first currency has a lwer interest rate, then yu are debited financing fr running a lng psitin and credited financing fr running a shrt psitin. The relevant financing charge will be debited frm r credited t yur Accunt n the next Business Day after the day t which it relates. 6.3 Please refer t the Market Infrmatin Sheets r ur Custmer Services Department fr details f hw the financing charge is calculated. The amunt f the financing charge will vary due t the elements that cnstitute the charge. Fr example, interest rates frm part f the calculatin; therefre the amunt payable will vary in accrdance with interest rate changes. 6.4 We reserve the right t vary: - the methd f calculating the financing charge and/r any elements that frm part f the calculatin; the types f cfds t which the financing charge is applied. The abve applies t all pen psitins as well as new psitins. We will give yu at least 14 days ntice f any such change if it will affect yur pen psitins (subject t ur rights under clause 6.5). In all ther cases we can make such changes with immediate effect. 6.5 If an Event Outside Our Cntrl and/r a Market Disruptin Event ccurs we can immediately vary: - the methd f calculating the financing charge and/r any elements that frm part f the calculatin; the types f cfds t which the financing charge is applied. The abve applies t all pen psitins as well as new psitins. 6.6 Details f current financing charges will be n the Market Infrmatin Sheets (available n Details f changes t the financing charges will als be published n the Market Infrmatin Sheets and may either be effective immediately r n such later dates as we specify (in accrdance with clause 6.4 and 6.5). It is yur respnsibility t make sure yu knw hw t calculate the financing charge. If yu are in any dubt, cntact ur Custmer Services Team. 7. Cmmissins and ther charges 7.1 Certain cfd trades are subject t a cmmissin charge, bth n the pening and clsing f each trade. Sme trades are als subject t a minimum cmmissin charge. Please refer t the Market Infrmatin Sheets fr details f cmmissin rates (including any minimum cmmissin), hw cmmissin is calculated and the trades t which it applies. 7.2 ITX trades are charged a cmmissin fee per rund turn lt. Please refer t the Market Infrmatin Sheets fr details f hw this cmmissin is calculated. 8. Calculatin f prfits and lsses 8.1 Subject t adding r deducting amunts in relatin t the cfd r spt frex trade cncerned in accrdance with clause 8.2 and t relevant adjustments (see fr example clause 32 f the General Terms, Crprate Actin) when yu clse a cfd r spt frex trade: - yu have made a prfit if the GFT Price yu sld at (whether t pen r clse) exceeded the GFT Price yu bught at (whether t pen r clse); yu have made a lss if the GFT Price yu sld at (whether t pen r clse) was less than the GFT Price yu bught at (whether t pen r clse). 8.2 Prfits and lsses n cfd r spt frex trade are calculated as fllws: - In the case f cfd trades: - trade size n clsing multiplied by (difference between clsing GFT Price and pening GFT Price f the relevant trade); less all amunts payable by yu t us in relatin t that trade, such as cmmissin and financing (see clauses 6 and 7); page 3 / 7 NOV 2007 v2

4 plus any financing charge payable by us t yu in respect f that trade (see clause 6). In the case f spt frex trades, prfit and lsses are calculated as fllws:- amunt f base currency n clsing multiplied by (difference between GFT Glbal Markets currency exchange rate at the pening f the trade cncerned and GFT Glbal Markets currency exchange rate n clsure f the trade cncerned); less all amunts payable by yu t us in relatin t that trade, such as cmmissin (see clause 7). 8.3 If yu wish t calculate whether any particular pen trade is in prfit r lss at any given time, yu can d s as prvided in clause 8.1, but using the relevant Marked t Market price as the clsing GFT Price. 9. Variatin Margin and clsure f psitins When is Variatin Margin payable? 9.1 Yu must pay Variatin Margin t us if the Risk Level is 75% r less (e.g. 50%). Risk Level is a percentage calculated as fllws: - (Ttal Equity divided by Margin Req) multiplied by Fr the purpse f calculating whether Variatin Margin is payable, and if s hw much, all relevant figures will be cnverted int yur Base Currency in accrdance with clause 27 f the General Terms. Hw much is payable? 9.3 The amunt f Variatin Margin yu must pay t us depends n yur Available Equity. Available Equity is calculated as set ut in clause The amunt f Variatin Margin yu must pay t us ( Variatin Margin ) is the amunt needed t return yur Available Equity t zer. Fr example if yur Available Equity is minus yu must pay us When must payment be made? 9.4 Variatin Margin is payable immediately upn yur Risk Level reaching 75% r less (e.g. 50%). It is due fr payment immediately n a Variatin Margin Call being made and is payable (in full) in accrdance with the fllwing timescales: - Amunt f Variatin Margin due Less than 10,000 (r currency equivalent). Timescale fr payment Within 5 Business Days (including the date f the Variatin Margin Call if a Business Day). 10,000 r mre (r currency equivalent). If the Variatin Margin Call was made befre nn n a Business Day, full payment must be made n that Business Day. In any ther circumstances, full payment must be made n the next Business Day. Please nte that if Variatin Margin due is less than 10,000 (r currency equivalent) but then rises t 10,000 (r currency equivalent) r mre the timescale fr payment will be that applicable t Variatin Margin f 10,000 (r currency equivalent) r mre (in ther wrds yu will nt be permitted 5 Business Days in which t pay ne tranche). 9.5 Yu must mnitr yur Accunt, and all relevant factrs, s that yu knw the current Risk Level, Available Equity and whether r nt Variatin Margin is payable. All the infrmatin yu need in rder t make these calculatins is available frm the fllwing surces: - DealBk ; the Market Infrmatin Sheets, lcated at Yu must als make sure yu understand hw t calculate Risk Level, Available Equity and Variatin Margin. If yu are in any dubt call ur Custmer Services Team. Will I receive Variatin Margin Calls r any ther reminders t pay Variatin Margin? 9.6 We are nt bliged t tell yu if Variatin Margin is payable nr t make a Variatin Margin Call. We have n liability t yu if we fail t tell yu that Variatin Margin is payable and/r fail t make a Variatin Margin Call. 9.7 Despite clause 9.6, we will endeavur t make a Variatin Margin Call t yu:- when the Risk Level reaches 75%; when the Risk Level reaches 50%. page 4 / 7 NOV 2007 v2

5 9.8 We will be regarded as having made a Variatin Margin Call if we send yu an requesting payment f Variatin Margin. In additin, will generally be the nly methd by which we make a Variatin Margin Call n yu. Therefre yu must ensure that yu maintain an address at all times and keep us up t date and infrmed f yur current address. 9.9 We will als be regarded as having made a Variatin Margin Call if we: - use any means f cmmunicatin t cntact yu requesting payment f Variatin Margin, fr example SMS text, pager, vic , telephne, fax r pst; send yu a message via DealBk ; have left a message with smene we reasnably believe will pass the message t yu (e.g. a spuse r wrk clleague), even if yu d nt cntact us; have used ther reasnable means t cntact yu, even if we have been unable t d s and have nt been able t leave a message fr yu. Please nte that we will generally nly use the means f cmmunicatin in this clause 9.9 if: - we have reasnable cncerns that an we have sent has nt been received by yu; fr any reasn we are unable t send yu an ; acting reasnably, we think it apprpriate t d s. What happens if I fail t pay Variatin Margin r my Risk Level falls t 25% r less? 9.10 If any f the fllwing ccur we are entitled t clse all pen psitins n yur Accunt and cancel all Orders: - if Risk Level is 25% r less; if yu have failed t pay the full amunt f Variatin Margin due in accrdance with the timescales in clause We can clse yur pen psitins and cancel all Orders as referred t in clause 9.10 with r withut giving yu ntice. If we d s withut giving ntice, we will infrm yu that we have dne s either by r as referred t in clause 9.9. Other Matters 9.12 The fllwing als apply in relatin t Variatin Margin: - all payments yu make t us must be in yur Base Currency, unless we agree therwise; we nly accept payment f Variatin Margin by telegraphic transfer, debit card r any ther methd f immediate electrnic transfer acceptable t us; subject t the Regulatry System, we can allw yur pen psitins t run, and allw yu t pen new psitins, even if yu have nt paid Variatin Margin payable; Variatin Margin des nt represent yur ttal liability t us. Yu must als, fr example, pay t us any lsses yu have incurred n clsed psitins as well as any ther amunts payable under the Terms. 10. Crprate Actin 10.1 Please nte in particular ur rights in relatin t Crprate Actin, clause 32 f the General Terms. 11. Definitins 11.1 The fllwing expressins have the fllwing meanings: - Accunt Available Equity Cash CFD and Spt Frex Terms an accunt with us fr either cfd r spt frex trading r bth. Ttal Equity less Margin Req. the balance f yur Accunt after all credits and debits have been made (fr example in respect f clsed psitins, but nt Unrealised P&L r pen psitins). these terms and cnditins as amended and/r replaced, see clause 41 f the General Terms. Current Psitin the ttal f the fllwing: - page 5 / 7 NOV 2007 v2

6 Ttal Equity; Less Margin Req. DealBk Flating P&L General Terms IM Factr Initial Margin (als knwn as Margin ) Margin Margin Req Marked t Market Market Infrmatin Sheets Risk Level the electrnic dealing system we make available t yu via the internet, t facilitate spread betting, trading in cfds and/r spt frex trading including the systems knwn as DealBk 360, DealBk WEB, DealBk Mbile and DealBk Mbile Basic. the ttal f all pen psitins n yur Accunt, Marked t Market. ur general terms and cnditins as amended and/r replaced in accrdance with clause 41 f thse general terms. the percentage r multiplier specified by GFT Glbal Markets (in its abslute discretin) in relatin t each Market. funds required by us in rder fr yu t pen (and maintain) a trade, calculated in accrdance with clause 3.2. Please nte that n DealBk Initial Margin is referred t as Margin. this means the same as Initial Margin, please refer t that definitin. the ttal f all Initial Margin in respect f all pen psitins n yur Accunt. the value f an pen psitin calculated at the current GFT Price. ur cfd and spt frex market infrmatin sheets, as amended and/r replaced in accrdance with the General Terms. The Market Infrmatin Sheets are available at a percentage calculated as fllws:- (Ttal Equity divided by Margin Req) multiplied by 100. Ttal Equity the sum f the fllwing:- Cash; Plus any psitive Flating P&L; Less any negative Flating P&L; Plus any psitive Unrealised P&L; Less any negative Unrealised P&L. Unrealised P&L this nly applies in relatin t spt frex transactins yu effect with yur Accunt. Yur Unrealised P&L is the prfit r lss n a clsed spt frex transactin that has nt been reflected in yur Cash (fr yur infrmatin in the case f a spt frex transactin the prfit r lss n a clsed psitin will nt be reflected in yur Cash until the 2 nd day after the trade has been clsed, excluding the day n which it was clsed). Variatin Margin as defined in clause 9.3. Variatin Margin Call a request fr payment f Variatin Margin, as referred t in clauses 9.8 and Unless therwise stated, a reference (in these CFD and Spt Frex Terms) t a clause is t a clause in these CFD and Spt Frex Terms. 12. Law and Jurisdictin 12.1 Our relatins prir t the establishment f any cntract between us, all trades and these Terms shall be gverned by and cnstrued in accrdance with the laws f England Except fr the right f GFT Glbal Markets belw, the curts f the United Kingdm will have exclusive jurisdictin ver any claim r matter arising under r in cnnectin with these Terms and the legal relatinships established by these Terms. Nthing in this clause shall limit the right f GFT Glbal Markets t take prceedings against the Client in any ther curt f cmpetent jurisdictin, nr shall the taking f prceedings in any ne r mre jurisdictins preclude the taking f prceedings in any ther jurisdictins, whether cncurrently r nt, t the extent permitted by the law f such ther jurisdictins. page 6 / 7 NOV 2007 v2

7 12.3 Yu irrevcably cnsent t any prcess in any legal actin r prceedings arising ut f r in cnnectin with these Terms being served n yu by pst in accrdance with clause 42 f the General Terms. Nthing in these Terms will affect the right f either party t serve prcess in any ther manner permitted by law. 13. Regulatin f GFT Glbal Markets 13.1 GFT Glbal Markets main business is the prvisin f spt frex, spread betting and cfd prducts and services. Its registered ffice is 34th Flr (CGC 34-03), 25 Canada Square, Lndn, E14 5LQ and its registered number is GFT Glbal Markets is registered n the FSA s register f authrised persns under number GFT Glbal Markets is authrised and regulated by the Financial Services Authrity. page 7 / 7 NOV 2007 v2