Key Information Document for the USD/CHF market quoted by TimeToTrade
This product is a leveraged financial derivative, commonly called a Spread Bet or CFD (contract for difference). Clients take positions (trade) on spread bets or contracts for difference in order to speculate on price movements of an underlying market.
The product is based on the underlying price of the USD/CHF and the prices quoted by us will be directly influenced by global movements in the price of this market. Clients buy or sell at the price offered by TimeToTrade in £, $ or € per point. Depending on how the market subsequently moves, clients will generate profits or incur losses.
Whilst there are great risks involved in trading such markets there is (similarly and symmetrically) the potential to make considerable profits. The possibilities for adverse market movements (as outlined below) is reflected by an almost equal opportunity to make corresponding profits. However, it is a matter of fact that, historically, 80% of retail investors lose money (over the long term) when trading such markets.
After a position is opened, each point movement of that market will generate a profit or loss equal to your stake size. If you have placed a £3 'bet' you will lose (or win) £3 for every unit movement of the market away from your entry level. So if you have bought £3 of the USD/CHF at -$1.0150 and the price is now -$1.0200 you will be losing 50 x £3 or £150.00 (the unit size for the USD/CHF is $0.0001).
A stop will always be placed on the position when it is opened. Unless otherwise specified by you when placing an opening trade the system will set a stop at a level which represents 50% of the funds apportioned to the new position.
The Minimum Margin Requirement (MMR) for this market is -£338.47 for a £1 Spread Bet.
1. Trading in Spread Bets and CFDs carries a high degree of risk. The leverage (or gearing) used when trading Spread Bets and CFDs means that whilst only a small initial sum may be required to open a Spread Bet or CFD position, the position can potentially lead to large losses, possibly all of the funds originally deposited by you. The nature of this gearing means that a relatively small movement in the price of a market in which you have a position can lead to a significant movement in the value of your trade. This can result in large losses as well as profits.
2. Spread Bets and CFDs offered by us are off-exchange derivatives (commonly called OTC, or over-the-counter products) and positions represent a bilateral contract between the client and TimeToTrade. Off-exchange products can involve greater risk than an on-exchange derivative as you are only able to open and close your position(s) with us. You will be unable to close a position that you have opened with us with a third party. This means that, should you be unable to access our trading platforms, you may be exposed to large losses.
3. Spread Bets and CFDs may only be settled in cash: we will never deliver the underlying market asset to which your Spread Bet and CFD relates (no physical delivery).
4. As mentioned earlier, you may sustain a total loss of the monies that you have deposited with us when opening a Spread Bet and CFD position. If the market moves against your positions such that the monies which you have deposited with us are insufficient to support all your positions we may close such positions as we see fit to bring your account back into a positive situation.
5. In certain trading conditions it may be difficult (or even impossible) to close a position held by you, even though you have insufficient funds to hold that 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 in the underlying market is suspended or restricted. If such an event should occur, your exposure to losses may be considerably greater than the monies deposited in your account.
6. You may place a Stop Loss Order against your position but this may not limit your losses to the amount indicated. Market conditions may make it impossible to execute such an Order if the underlying market moves straight through the stop price requested by you.
The risk indicator is a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money due to the movements in the underlying markets to which this product relates AND includes the risk that we are unable to pay you.
We have classified this market as 6 out of 7. This is a very high risk level but is not classed as 7 as you have no collateral risk beyond the funds that you have deposited with us.
TigerWit is regulated by the Financial Conduct Authority (FCA) and as such our clients are covered by the FSCS compensation scheme (FSCS). This provide clients protection of up to £50,000 [as at 31st December 2017] of investments
In general there are zero 'costs' to place a trade in a Spread Bets or CFD aside from the initial buy/sell 'spread' when executing your initiating trade.
If you hold a Spread Bet (or CFD) position overnight then you may be subject to a financing charge for doing so.
The overnight financing charge for holding a £1 Buy/Long [Spread Bet] in this market is currently £0.35 and is -£1.46 for a £1 Sell/Short [Spread Bet].
If you hold the position over the weekend you will be charged 3 days financing.
You can hold the position for as long or as short a period as you desire, there is no recommended period. So long as you have sufficient funds (cash) in your account to support both any trading losses and the incremental financing charges, the position can remain open ongoingly. However, due largely to the leverage and financing charges, most clients trade these products inter- and intra-day.
You can ask for any cash on your account that is not being used to support your open positions to be returned to you immediately. There is no penalty to request a refund although there may be some banking charges.
2. 1. If your complaint cannot be resolved by customer support or the dealers then it may be referred to our compliance department according to our complaints procedure, a copy of which is available online and is available on request. If you are dissatisfied with the result of our compliance department's investigation or with any action taken by us as a result thereof, you are able to refer your complaint to the Financial Ombudsman Service for further investigation at South Quay Plaza, 183 Marsh Wall, London, E14 9SR.
No recent data for USD/CHF