INDUSTRY LEADING DERIVATIVES EXPERTS. Tel:

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1 INDUSTRY LEADING DERIVATIVES EXPERTS Tel:

2 Insight specialises in generating tax-free capital growth by investing client funds using spread betting platforms to take leveraged positions in shares traded on the world s leading stock exchanges. SERVICES OFFERED Insight Capital Strategies offers investors a personalised range of broking services as well as the opportunity to generate significant returns from investment in derivatives products. Insight works with investors who wish to have a portion of their investments in a high risk / high return vehicle, managed by a company which seeks to return significant annual double digit growth. Based in Glasgow, Insight was founded in 2014 to provide high net worth and professional investors a route to potentially significant returns that are not subject to tax. Using leveraged products such as spread betting and CFDs, the founders put their money where their mouth is in that their own personal funds are run alongside all client funds, such is their strong belief in the company. Insight brings together an experienced team of investment professionals. Our team includes a highly skilled and experienced investment manager, together with two Chartered Accountants and an experienced business leader, all of whom have successfully created and managed a wide range of investment products over the last 20 years. Investors should be aware of the following Risk Warnings: Past performance is no guarantee of future performance and you may not get back the amount you invest. The value of investments and the income from them may go down as well as up and are not guaranteed. CFDs and Spread Bets are highly leveraged products and carry a high level of risk to your capital. Due to the leverage offered it is possible for you to incur losses in excess of your initial margin. These products are not suitable for all investors so please make sure that you understand the risks involved. You should not trade with capital you cannot afford to lose. The level and bases of, and reliefs from, taxation may change in the future. Rates of exchange may cause the value of investments to go up or down. SPREAD BETTING Spread betting offers a simple, tax-efficient* method of trading using leveraged positions to maximise profits. It is not without its risks in that it is possible to lose more than the initial investment, hence why we believe that people should invest with a trusted partner like Insight. Insight offers a managed spread betting service which can be tailored to suit the requirements of individual investors. CFDS Contracts for difference (CFD s) are one of the world s fastest-growing trading instruments. A contract for difference creates, as its name suggests, a contract between two parties speculating on the movement of an asset price. The CFD consists of an agreement (contract) to exchange the difference in value of a particular currency, commodity, share or index between the time at which a contract is opened and the time at which it is closed. The contract payout will amount to the difference in the price of the asset between the time the contract is opened and the time it is closed. Insight offers a tailored CFD dealing service as well as a first class class execution-only broking service for CFD s, both online and over the phone. FOREX Foreign exchange, commonly known as forex or fx, is the exchange of one currency for another at an agreed exchange price on the OTC market. This market is the most liquid and widely traded in the world, with a turnover in excess of $4 trillion every day (Federal Reserve System). Insight can offer clients the ability to trade forex online, covering the majority of the world s currency pairs. ADVISORY BROKERAGE SERVICE Insight offers an advisory stockbroking service to professional clients who are comfortable making their own investment decisions. This is our entry level stockbroking service where you are the manager of your investment portfolio. Our Brokers will offer advice on individual securities and funds only, not on the composition or on-going suitability of a portfolio of investments. This service is suitable for investors who take an active interest in the market and are comfortable in making their own investment decisions. Insight can also offer an enhanced and comprehensive stockbroking service where you are the manager of your investment portfolio. In this case we can provide advice on the design and construction of your portfolio and its on-going management and provide individual stock recommendations, including a comprehensive twice yearly valuation report of your portfolio. EXECUTION-ONLY BROKERAGE SERVICE If you understand the risks and benefits of investing in the market, an execution-only brokerage service can help you manage your portfolio. Self-directed investors who want to make their own decisions are most suited to this service. Insight offers an execution-only dealing service. Our aim is to build strong, successful relationships with our clients by offering a friendly, efficient and professional service. For investors that are comfortable making their own investment decisions, Insight offers both a telephone and an online dealing service which covers most of the world s stockmarkets. For our execution-only clients we provide factual information such as prices and news, but we do not provide investment advice. * Current taxation laws may be subject to change. 1 2 Insight Capital Strategies Limited is an appointed representative of H2O Markets Limited which is authorised and regulated by the Financial Conduct Authority (FRN ). Insight Capital Strategies Limited is a company registered in Scotland under No. SC Registered Office: Menteith House, 29 Park Circus, Glasgow G3 5AP.

3 SPREAD BETTING Spread Betting is a tool that enables traders to profit from both upward and downward movements on a wide variety of financial markets, whether indices, individual shares or commodities, such as gold or crude oil. What differentiates Spread Betting from other types of financial speculation is that ALL profits are free of Capital Gains Tax and Income Tax. They are classified as resulting from bets. Any losses however on Spread Betting, are not allowable against tax.* The following examples illustrate how spread betting returns are calculated: Spread betting in financial markets is now an established means of speculating on whether the price of an underlying instrument, such as a share, currency, commodity or index, will rise or fall. Unlike in share dealing, however, in spread betting you will never actually own any shares or investments. If you believe that the price of a share or index is going to rise, you would go long by placing a buy bet, or if you expect the price to fall you would go short by placing a sell bet. The extent of the price movement will determine the level of profits or losses you make. Spread Betting differs from fixed odds betting in that you don t risk a certain amount per bet, and there is no fixed profit or loss. The difference between fixed odds betting and spread betting is that your ultimate profit and loss with this style of betting is never known until you liquidate the bet. There are no commissions payable as the pricing is built into the spread. Like other forms of gambling, there is no tax payable on winnings or tax relief available on losses. Insight offers a managed spread betting service, whereby our experienced traders will manage your account and place bets on your behalf. Spread betting is very flexible and Insight offers many markets and products to trade, all following the same principle of betting pounds per point. Details of our spread betting mandate are included on page 8. Spread betting offers a simple, tax-efficient* method of trading using leveraged positions to maximise profits. It is not without its risks in that it is possible to lose more than the initial investment, hence why we believe that people should invest with a trusted partner such as Insight. EXAMPLE 1: ORDINARY SHARE SPREAD BET Vodafone is currently trading Investor A believes that Vodafone is going to rise and places a buy bet at for 10 a point. Investor B has the opposite view and believes that Vodafone is going to fall and places a sell bet at 230 for 10 point. SCENARIO 1 Vodafone rise to Investor A s prediction is correct Vodafone has risen and he closes his position with a sell bet at 235 and subsequently makes a 45 profit (4.5 points x 10) Investor B decided to cut her losses and closes her position at 235. She makes a 50 loss (5 points x 10) SCENARIO 2 Vodafone falls to Investor A s prediction is incorrect and he decides to close his position at 226, making a loss of 40 (4 points x 10). Investor B s position has moved in her anticipated direction and she decides to close her position at 126.5, making a profit of 35 (3.5 points x 10) EXAMPLE 2: INDEX SPREAD BET The theory of spread betting is exactly the same whatever instrument you wish to trade. One of the most popular forms of financial spread betting is on world indicies such as the FTSE 100 or The Dow Jones: The FTSE 100 is currently trading at 6469 and the broker is quoting a spread of on the Daily FTSE. Investor A believes that the FTSE is going to rise and goes long, placing a buy bet at 6470 for 5 per point. Investor B believes that the FTSE is going to fall and goes short, placing a sell bet at 6468 for 5 per point. SCENARIO A A week later the FTSE has risen and the daily FTSE spread is now Investor A has predicted correctly and decides to place a sell bet at 6500 to close out his position, making a profit of 150 (30 points x 5). Investor B, meanwhile, has to place a buy bet at 6502 to close her position, making a loss of 170 (34 points x 5) SCENARIO B Conversely, assume the FTSE falls and the current FTSE spread is now In this case Investor A decides to close out his position by placing a sell bet at 6430 and makes a loss of 200 (40 points x 5). Investor B, however, has correctly predicted a fall in the market and closes her position, placing a buy bet at She makes a profit of 180 (36 points x 5) * Current taxation laws may be subject to change. 3 4 Insight Capital Strategies Limited is an appointed representative of H2O Markets Limited which is authorised and regulated by the Financial Conduct Authority (FRN ). Insight Capital Strategies Limited is a company registered in Scotland under No. SC Registered Office: Menteith House, 29 Park Circus, Glasgow G3 5AP.

4 CFD TRADING EXAMPLES Going long on a CFD position is akin to buying a share or index on margin. However, a feature of trading CFDs is that you can also make money if you think that a share price or index is going to fall by taking a short position. The tables below illustrate an example of a CFD trade in British Airways at 228p. This highlights the difference between an investor buying a position in shares and an investor buying the same size of position using CFDs A CFD, or Contract for Difference, is an agreement between two parties to exchange the difference between the opening price and closing price of a contract. CFDs are derivatives products that allow you to trade on live market price movements without actually owning the underlying instrument on which your contract is based. You can use CFDs to speculate on the future movement of market prices regardless of whether the underlying markets are rising or falling. You can go short (sell), allowing you to profit from falling prices, or hedge your portfolio to offset any potential loss in value of your physical investments. Moreover, with over 10,000 markets to trade, you can gain exposure to markets you may not have had access to before. Insight can trade CFDs on behalf of clients or can simply offer prices on shares, indices, currencies, commodities and more. Insight is an appointed representative of H2O Markets Limited which provides discretionary account management to professional investors. TRADE 1: RESULT PROFIT OPENING TRADE BUYING SHARES BUYING A CFD Price of British Airways 228p 228p Number of Shares Value of Position Stamp Duty (0.5%) 57 0 Commission 114 (1%) (0.25%) Deposit Required After 5 days both investors close their British Airways positions for a profit. CLOSING TRADE SELLING SHARES SELLING A CFD Price of British Airways 250p 250p Number of Shares Value of Position Commission Financing Charges* NIL 4.68 Net Profit Return on Equity Deposit 7% 91.25% TRADE 2: LONG TRADE WITH NET LOSS After 5 days the position hits a stop loss which was placed at 218p, closing the British Airways position at a loss in the process. CLOSING TRADE SELLING SHARES SELLING A CFD Price of British Airways 218p 218p Number of Shares Value of Position Commission Financing Charges* NIL 4.68 Net Loss Return on Equity Deposit -6.84% % *position held over 5 nights CFD trading buy (long) positions held overnight are subject to an overnight financing daily fee. For long positions the interest is debited and for short positions the interest is credited. In this specific example, the CFD investor has paid a standard financing charge of 4.68 for holding the position. Interest is charged on an overnight basis and is based on the full overall contract size [in this case 11,400 x 3% (LIBOR %) divided by 365 x the amount of days the position is open. 5 days = 4.68.] Commission is charged as a percentage of the total value of a position. Note that long positions held for long periods of time can reduce returns, in some cases rendering the gearing obtained as comparable to buying a contract or shares completely in the market. CFDs give investors exposure to changes in share prices but cannot result in delivery of actual shares by or to the investor nor do they confer ownership rights. This is because through holding a CFD contract the the investor does not own the underlying shares and, as such, does not have any voting rights. Note that the percentage return will depend on the extent of leverage used; high leverage can result in both bigger profits and larger losses. Extremely high returns normally require extreme leverage, which can easily result in extreme losses if the trader is on the wrong side of the trade and does not exit the position quickly. 5 6 Insight Capital Strategies Limited is an appointed representative of H2O Markets Limited which is authorised and regulated by the Financial Conduct Authority (FRN ). Insight Capital Strategies Limited is a company registered in Scotland under No. SC Registered Office: Menteith House, 29 Park Circus, Glasgow G3 5AP.

5 We focus principally on the top 350 companies in the UK and the larger companies in the US and Europe. These offer better liquidity and a more efficient use of capital through lower margin requirements. INSIGHT S SPREAD BETTING MANDATE Our experienced fund managers will manage your account with one of our trading partners, placing trades with the aim of achieving capital returns which are significantly higher than traditional investments FTSE 100 from Insight provides account management as an appointed representative of H2O Markets Limited which provides discretionary account management to professional investors. The majority of our trades are in equities, although sometimes we will take positions on the indices themselves. We focus principally on the top 350 companies in the UK and the larger companies in the US and Europe. The reason for this is that they offer much better liquidity and a far more efficient use of capital through lower margin requirements. Our trading ideas are based on short term technical and fundamental news, including breakouts or breakdowns on the charts, daily broker upgrades or downgrades, or sector and company related news. We are strong believers in unusually high volume indicators in stocks and options. We have a vast amount of experience and understanding of leveraged trading, and the effects this has on the characteristics of individual stocks. For example if a stock is widely held by CFD traders and Spread Betters, then this could lead to a situation where a raft of margin calls could be triggered and therefore present trading opportunities on either the long or short side. RISK MANAGEMENT Understanding and managing risk is key to successful trading. Our experienced investment managers will rarely use more than 20% of a client s capital in any one position and make judicious use of stop-losses to protect investors capital. A stop-loss is an order placed with a broker to close a position if the price of the underlying security reaches a certain level, which is designed to limit an investor s loss on any individual position. We are confident that we will select a high percentage of winning trades and this is backed up by our trading record. We do not, however, have a crystal ball so there will be losing trades placed. Our focus on these losing trades is to minimise their impact on our clients capital through the use of stop-losses and smaller individual positions. The majority of the positions we take for clients are taken on a short term view in order to benefit from the market s volatility that has increased in recent years due to the increase in hedge funds and electronic trading. Insight seeks to utilise this higher degree of volatility to the advantage of its clients. Our reasons for entering a trade are typically based on very short term indicators, such as those mentioned above. We are extremely disciplined and do not become emotionally attached to a position, which is often the downfall of inexperienced investors. One of our mantras is close it and move on. This simple sounding philosophy has increased our returns dramatically. 7 8 Insight Capital Strategies Limited is an appointed representative of H2O Markets Limited which is authorised and regulated by the Financial Conduct Authority (FRN ). Insight Capital Strategies Limited is a company registered in Scotland under No. SC Registered Office: Menteith House, 29 Park Circus, Glasgow G3 5AP.

6 HOW TO OPEN AN ACCOUNT POCKET Opening an account with Insight is simple. Download the account opening forms at or complete those enclosed with this brochure. Please answer all questions as it is important that we assess the suitability of our service for each potential investor. It is incumbent on Insight to perform anti money laundering checks on all clients. We will require a copy of your passport or driving licence and two recent utility bills or bank/credit card statements. Once your application has been approved we will open your trading account and request your initial deposit of funds (minimum 10,000). If you have any questions relating to this process please contact us on We will be happy to answer all your queries. Once you have completed the form please it to: info@insightcapitalstrategies.com or post it to: Insight Capital Strategies, 29 Park Circus, Glasgow, G3 6AP, Scotland Insight Capital Strategies Limited is an appointed representative of H2O Markets Limited which is authorised and regulated by the Financial Conduct Authority (FRN ). Insight Capital Strategies Limited is a company registered in Scotland under No. SC Registered Office: Menteith House, 29 Park Circus, Glasgow G3 5AP.

7 Web: insightcapitalstrategies.com Tel: Park Circus Glasgow G3 6AP Scotland INDUSTRY LEADING DERIVATIVES EXPERTS RISK WARNING Before trading Shares, Contracts for Difference, Spread bets or Foreign Exchange (ForEx or FX), please ensure you fully understand the risks involved. These products may not be suitable for all types of investor. The value of all investments can go down as well as up and when trading shares you may not get back the full amount of your investment. Specifically, trading in Contracts for Difference, Spread bets and FX carries a high degree of risk and is generally considered suitable only for the more experienced investor. Leveraged products carry a high degree of risk to your capital, and in some circumstances you may be liable for a greater sum than your initial capital invested. You should be aware that due to the leverage involved losses can mount rapidly and substantially. You should only speculate with money you can afford to lose. Tax laws could be subject to change in the future. Insight Capital Strategies Limited is an appointed representative of H2O Markets Limited which is authorised and regulated by the Financial Conduct Authority (FRN ) design by