Risk Warning
This notice is provided to you because you are proposing to undertake dealings in contracts for
difference and foreign exchange. This notice cannot and does not disclose or explain all of the
risks and other significant aspects involved in dealing in contracts for difference or foreign
exchange. Engaging in these types of transactions can carry a high risk. You should not engage
in this form of trading unless you understand the nature of the transaction you are entering into
and the true extent of your exposure to the risk of loss. Your profit or loss will vary according to
the extent of the fluctuations in the price of the "underlying markets".
For many members of the public, these transactions may not be appropriate; you should,
therefore, consider carefully whether they are suitable for you in the light of your circumstances
and financial resources. In considering whether to engage in this form of trading, you should be
aware of the following:
- The high degree of "gearing" or "leverage" is a particular feature of this type of
transaction. This stems from the margining system applicable to such trades which
generally involves a comparatively modest deposit or margin in terms of the overall
contract value, so that a relatively small movement in the underlying market can have a
disproportionately dramatic effect on your trade. If the underlying market movement is in
your favor, you may achieve a good profit, but an equally small adverse market
movement can not only quickly result in the loss of your entire deposit, but may also
expose you to a large additional loss unless you enter a limited liability contract (place a
guaranteed stop loss) with us, where we offer such facility.
- KT Markets is an international player on the CFD and FX markets, all countries have their own
risk profile. The potential for profit or loss from transactions on foreign markets or in
foreign currency denominated markets will be affected by fluctuations in foreign
exchange rates.
- You may be called upon to deposit substantial additional margin, at short notice, to
maintain your trade. If you do not provide such additional funds within the time required,
your trade may be closed at a loss and you will be liable for any resulting deficit.
- CFD and FX transactions will not be undertaken on a recognised or designated
investment exchange. During normal market hours , we will execute CFD and FX Orders
and Trades at our price. We do not normally accept orders out of hours. We act as an
execution only dealer in these CFDs and FX. Closing trades will be traded at the price
dictated by the spread quoted at the time of closing, irrespective of the spread at the time
of the opening trade, which may be larger or smaller. No guarantee is given as to the
spread at the time of closing. All CFD or FX trades opened with us must be closed with
us and cannot be closed with any other entity.
- Where entering into such transactions, we must do so under a two-way customer
agreement.
- Prior to placing trades, you should ensure that you understand all charges for which you
will be liable.
- CFDs are higher risk investments than ordinary share dealing, as gearing can lead to
unlimited losses. However, to limit potential losses and bring peace of mind, clients
trading through us have access to both a simple stop loss facility and, where we offer this,
a guaranteed stop loss facility. Both simple and guaranteed stop loss facilities are only
available at our absolute discretion. For further detail in relation to stop losses please
refer to our Dealing System. A stop loss order allows you to set a price which if breached
will automatically trigger a sell order (for long positions) or buy order (for short
positions) to close your current position. This facility is available at our discretion when
placing the deal either through the online platform or over the telephone. With a simple
stop loss if the share or index breaches your stop loss then your order will be executed
when we are reasonably able to do so. This may mean the order is executed at less than
your stop loss price in the case of a long position or more than the stop loss price in the
case of a short position. However you can use a guaranteed stop loss on selected
underlying products. As it suggests this is a stop loss order that is guaranteed to be
executed at the price you specify, even if the price of the underlying product makes a
sudden movement and never actually trades at the price that you specified, your position
will still be closed at your chosen price. This may not be the case with a simple stop loss.
The guaranteed stop loss facility may be available through our on line Dealing System or
via telephone on such underlying products as we determine in our discretion. You may
also be required to pay a small premium for the guaranteed stop loss facility when
placing the deal but many would consider this a small price to pay when compared to the
cost of an unpredictable loss.
- Under certain trading conditions it may be difficult or impossible to liquidate a position.
This may occur, for example at times of rapid price movement if the price rises or falls in
one trading session to such an extent that trading is restricted or suspended.
- We are prohibited under our investment business license from providing you with
investment advice relating to investments or possible transactions in investments or from
making investment recommendations of any kind. This prohibition is subject to an
exception where advice given amounts to the giving of factual market information or
information, in relation to a transaction about which you have enquired, as to transaction
procedures, potential risks involved and how those risks may be minimised.
- We are required to hold your investments in segregated omnibus account in accordance
with the Regulatory Code 2009, but this may not afford complete protection.
- If you deposit collateral as security with us, you should ascertain from us how your
collateral will be dealt with.
Complaints Policy
If you have a complaint about our products or services, you should contact us as soon as
possible. It is our policy to handle complaints fairly, consistently and promptly.
A copy of our internal complaints procedures is available upon request from our Compliance
Officer. Email Compliance Department
Communicating with Us
We will communicate with you orally and in writing in English. If you wish to communicatewith us, you will need to do so in English unless we agree otherwise.
Conflicts of Interest
We are committed to treating our customers fairly. However, we and our connected persons may,
when dealing with you, have interests which are, or may be, in conflict with your own interests
or owe duties to third parties which are in conflict with your own interests. In such
circumstances, we will have regards to your interests in the manner set out in our Conflicts Policy.
Our Costs and Charges
Our costs and charges for entering into orders and trades with us in CFDs and FX are as set out on our Fees List and the prices at which you can trade in CFDs and FX with us are set out on our dealing system from time to time.
Execution Policy
The manner in which we will execute orders and trades with you is set out in our Execution Policy, as amended from time to time. To see the maximum spreads which we will charge for the purposes of the Execution Policy, click on Market Information.