CFDs – Key Information Document – CFD on Futures

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.

الشركة المُصنِّعة:
Vector Financial Services (Pty) Ltd رقم التسجيل 2018/221248/07 (FSP رقم 49977)

مكان العمل الرئيسي:
26 شارع باكر 26، شارع روزبانك، جوهانسبورغ، غوتنغ، 2196، جنوب أفريقيا

الهيئة الخاضعة لإشرافها:
هيئة سلوكيات القطاع المالي في جنوب أفريقيا ("FSCA").

مجمع مكاتب ريفرووك أوفيس بارك، بلوك ب، 41 طريق ماتروسبرغ، أشليا جاردنز، بريتوريا، 0081

أنت على وشك شراء منتج معقد يصعب فهمه وينطوي على مخاطر عالية بخسارة رأس مالك المستثمر بالكامل

 Product Description
Contracts For Differences (CFDs), are complex financial products in accordance with the applicable law. They are traded on an ‘over-the-counter (‘OTC’) basis and not through a regulated market.

CFDs, which are agreements to exchange the difference in value of a particular underlying instrument between the time at which the agreement is entered into and the time at which it is closed, allowing the investors to replicate the economic effect of trading in particular currencies or other asset classes without requiring actual ownership.

An investor has the choice to buy the CFD to benefit from rising Future prices; or to sell the CFD to benefit from falling Future prices.

عند تداول العقود مقابل الفروقات لا يوجد تبادل مادي للأصول؛ وبالتالي، فإن التسوية المالية تنتج عن الفرق في وقت إغلاق المركز وسعر الأصل الأساسي (الذي صاغه الطرف المقابل) في وقت فتح المركز.

تشمل الأصول الأساسية الأكثر شيوعًا الأسهم والسلع والعملات ومؤشرات السوق.

سيتم تحديد مقدار أي ربح أو خسارة يتم تحقيقه من صفقة عقود الفروقات من خلال

• الفرق بين سعر فتح الصفقة والسعر عند إغلاق الصفقة;
• الوحدات المتداولة
• Any adjustments in respect of the CFD, for example where a dividend is paid on an underlying share/index;
• أي تكاليف احتفاظ أو عمولات تتعلق بعقود الفروقات;
• قيمة التجزئة أو النقطة للأداة المتداولة;

In order for a position to be opened an investor should have sufficient funds in the trading account to cover the required margin for that position. The margin required for the various CFDs can be found on our website and/or platform.

عند إغلاق المركز، يربح المستثمر الفرق بين القيمة السوقية للأصل الأساسي في وقت إغلاق المركز، إذا

When holding a long position (buying a CFD), the price at the time the position closes, is higher than the price at the time the position was opened, which is automatically converted to the trading account currency; or

عند الاحتفاظ بصفقة بيع (بيع عقد فروقات)، يكون السعر، وقت إغلاق الصفقة، أقل من السعر وقت فتح الصفقة، والذي يتم تحويله تلقائيًا إلى عملة حساب التداول

To close an open ‘buy’ or ‘long’ CFD you sell it, and to close an open ‘short’ or ‘sold’ CFD you buy it. With most CFDs you can hold the position for as long as you like which may be for less than a day, or for months.

The Closing Level will be the last available price at or prior to the close or the applicable official closing quotation or value in the relevant underlying market as reported in the platform; minus any commission or spread which is applied to the CFD when it is closed.

CFDs – Leverage and Margin

CFDs are leveraged financial instruments, which allow the investor to trade on higher exposures on the underlying assets compared to the invested amounts.

With CFDs, you only have to put in a portion of the market value of the underlying instrument when making a trade. The leverage usually is specified as a ratio, such as 1:25, 1:50, 1:100 or 1:200. This means that you can trade with amounts proportionally higher than you could invest in a particular CFD.

The initial margin is the amount required by the investor to open a certain position in CFDs and is expressed as a percentage of the nominal exposure. The lower the percentage the higher the financial leverage.

Examples:

An investor wishes to purchase 5 Contracts (1 Lot = 5 Contracts) of US30 Dow Jones Mini Future at price USD 32,308 with a margin requirement 10% (which is equal to 1:10 leverage) for that instrument. This requires for the investor to place a margin of:

5 contracts * market price USD 32,308 / leverage (10) = USD 16,154.

أو ما يعادلها:

5 contracts * market price USD 32,308 * margin requirement (20%) = 16,154 USD

This margin requirement is then converted to account currency.

مستثمر التجزئة المقصود
التداول في هذا المنتج لن يكون مناسبًا للجميع.

This product would commonly be used by persons who want to generally gain short-term exposures to financial instruments/markets; are using (trading with) money that they can afford to lose; have a diversified investment and savings portfolio; have a high risk tolerance; and understand the impact of and risks associated with margin trading.

CFDs – What are the risks and what could I get in return?

مؤشر المخاطر

The risk indicator assumes that you may not be able to buy or sell your CFD at the price you wanted to due to the volatility of the market, or you may have to buy or sell your CFD at a price that significantly impacts how much you will get in return.

مخاطر أقل مخاطر أعلى

The summary risk indicator is a guide to the level of risk of this product compared to other products. It is shown how you may experience losses, due to volatility of the CFDs. We have classified this product as 7 out of 7, which is the highest risk class. This rates the potential losses from the future performance of the product at a very high level.

CFDs are traded on margin and carry a risk of losing all your invested capital. Before deciding to trade on margin products you should consider your investment objectives, risk tolerance, and your level of experience on these products. Trading with a high leverage level can either be against you or for you. You should be aware of all risks associated with regard to products that are traded on margin and seek independent advice, if necessary.

Account Performance ScenariosMarket developments in the future cannot be accurately predicted. The scenarios shown below are only an indication of some of the possible outcomes based on recent returns. Actual returns could be lower.

The scenarios below demonstrate how your investment could perform in different events. The results below should not be considered as exact indicators or recommendations whatsoever, and do not include different types of charges that may apply to your account. Therefore, your account performance (positive or negative) depends on various factors, for instance how long you hold your position(s).

Energies CFDUS30 FUTURE: Opening PriceP32,308Trade size (per CFD)TS5Margin percentageM10%Margin RequiredMR=P x TS x MUSD 16,154Notional value of the tradeTN=MR/M = P x TSProfit & Loss calculation: EUR (Variable  currency) Account Currency EUR  

LongPerformance ScenarioAccount PerformanceClosing PriceProfit/Loss(Account currency)ShortPerformanc e ScenarioAccount PerformanceClosing priceProfit/Loss(Account Currency)

Favorable3%33,277.244,846.20

Favorable3%31,338.764,846.20Moderate1.5%32,792.622,423.10

Moderate1.5%31,823.382,423.10

Unfavorable-2.80%31,403.38-4,523.12

Unfavorable-2.80%33,212.62-4,523.12  

Stress-5%30,692.60-8,077.00Stress-5%33,923.40-8,077.00

 رسوم/رسوم التداول

Before you start trading CFDs on Futures you should familiarize yourself with all costs associated with trading. These charges will reduce any net profit or increase your losses. More information can be found on our website and/or platform.

How long should I hold it, and can I take the money out early?
There is no recommended holding period, no cancellation period, and therefore no cancellation fees. You can open and close a CFD at any time during market hours.

How can I complain?
Retail investors may submit their complaints or grievances in relation to CFDs, using the Complaint Form, to the Head of the Compliance department. The “Complaint Form” may be submitted to the Company by email [email protected], or by post (P O BOX 787502, SANDTON, JOHANNESBURG, GAUTENG, 2146, SOUTH AFRICA). For further details, the investors should refer to the Complaint Handling Form on the Company’s website.

Other relevant information
The retail investors must ensure that they have read and understood all the Legal Documents of the Company such as the Privacy Policy, FAIS Disclosure, Complaints and Dispute Policy, Conflict of Interest Policy and Service Disclosure Notice displayed in the legal section of our website. These are important documents for you to read and understand prior to opening an account and start trading with the Company.