Subject to these Margin Trading Terms, you have the option to receive credit from us to facilitate the purchase of Financial Instruments, enabling you to trade on margin. This document delineates the conditions governing the provision of credit or loan facilities, allowing you to engage in trading activities using the credit facilities we extend to your Account. The Company is not obliged to provide an investment loan to the Client, the granting of the loan is in each case a specific decision of the Company, as well as a condition that the Client has the minimum amount of collateral specified by the Company.

In other words, when you buy financial instruments, you have the option to pay the full price upfront or to borrow part of the purchase price from the Company. If you opt to borrow funds from the Company, you will need to open a margin account with them. The financial instruments you purchase will serve as collateral for the loan from the Company. Should the value of the financial instruments or other assets in your account decrease, the value of the collateral securing your loan also decreases. Consequently, the Company may take actions such as selling financial instruments or other assets in any of your accounts with them, or issuing a margin call, to ensure the required equity is maintained in your account.

In addition to the other risks described in these Terms, it is important that you fully understand the risks involved in trading financial instruments on margin. These risks include the following:

Potential Losses: You can lose more funds than you deposit in the margin account.

Margin Calls: A decline in the value of financial instruments or futures contracts that are purchased on margin may require you to provide additional funds to the Company or you must put up margin to avoid the forced sale of those financial instruments, or other assets in your account(s).

Forced Sale: The Company can force the sale of financial instruments or other assets in your account(s). If the equity in your account falls below the maintenance margin requirements, the Company can sell the financial instruments, or other assets in any of your accounts held by the Company to cover the margin deficiency. You will also be responsible for any shortfall in the account after such a sale.

Company’s Discretion: You are not entitled to choose which financial instruments, or other assets in your account(s) are liquidated or sold to meet a margin call. The Company has the right to decide which positions to sell in order to protect its interests.

1.1. Upon your request for Services under these Terms and our mutual agreement, an on-demand credit allowance will be extended to you. This allowance empowers you to acquire more Financial Instruments than the funds or financial instruments balance in your Account would typically allow. As a result, the volume of Financial Instruments purchased may significantly surpass the value of your deposited funds. You acknowledge that while such transactions may offer enhanced profit potential, they also entail a heightened level of risk. These Transactions have the capacity to amplify not only gains but also losses.

1.2. In the event of a decrease in the market value of the Financial Instruments in your Account, you may be obligated to promptly deposit additional funds to uphold your credit line. Should the financial instruments acquired on credit experience a complete or partial decline in value, you would be expected to provide the necessary cash deposits to offset the loss. Failure to do so may necessitate the sale of all or a portion of the assets held in your account.

1.3. You acknowledge that credit facilities entail a loan arrangement where interest is levied on the outstanding loan balance. Interest charges are debited to your Account unless you choose to make payments, which will offset such charges. As time elapses, your debt level escalates due to accruing interest charges. With increasing debt, interest expenses rise accordingly, creating a compounding effect. Consequently, the longer you maintain an Investment on margin, the higher the required return to reach a break-even point. Prolonged holding of an Investment on margin tilts the odds against profit generation.

1.4. You acknowledge that we establish the borrowing limit and reserve the right to adjust it at our discretion without prior consultation. However, we will provide advance notice before implementing any changes to this limit. It is essential to recognize that margin trading is a privilege granted by us and not an inherent right. We are not obligated to facilitate funding or lending for the execution of your Transactions.

1.5. You acknowledge that all Financial Instruments and Fund balances acquired in your Account through trading under these Terms will be subject to security interests in our favour, constituting Secured Assets. Should you fail to fulfill any payments or deliveries under these Terms, we reserve the right to sell your Assets to recuperate funds or apply available Cash in your Account to meet your Secured Obligations, without providing prior notice to you.

1.6. You agree to prudently assess whether engaging in any Transactions under these Terms is suitable for your financial resources and other pertinent circumstances.

2.1. Prior to utilizing the credit facilities or executing any trades under these Terms, we will request that you hold or deposit with us the requisite cash amount.

2.2. Upon the granting of credit facilities in your Account, you will have the ability to place Orders with us to purchase Financial Instruments using such facilities, i.e., orders to initiate margin Transactions.

2.3. The value of any financial instruments or funds (i.e., an asset) in your Account will be considered equivalent to its market value adjusted for perceived risk. Maintenance margin discounts may be employed by us to modify the market values of Assets in your Account and shall be determined by us at our sole discretion. We reserve the right to modify the percentages of maintenance discounts at any time without prior consultation with you. However, we will provide notice before such changes take effect.

2.4. The liquidation value will be calculated as the total value of Financial Instruments and Funds in your Account (i.e., Assets), minus the total value of Financial Instruments you have purchased via our credit facilities (i.e., Liabilities). The available funds will be the difference between the liquidation value and the margin requirement for your portfolio.

2.5. Once a margin Transaction has been initiated, you must ensure that throughout its duration, the ratio between the liquidation value of your portfolio, reduced by maintenance margin requirements for the portfolio never falls below zero. In other words, the liquidation value should always exceed the maintenance margin requirement for the portfolio. This ratio will be referred to as the margin level.

2.6. You agree that any valuations under these Terms will be conducted based on pricing and valuation information deemed reliable by us. For the purposes of these Terms, the foundation of all valuations will adhere to the guidelines outlined in the below two clauses unless otherwise communicated.

2.7. The market value of any Financial Instruments will be determined by us, referencing pricing sources that we reasonably deem appropriate. If prices for such Financial Instruments are available on a trading venue or organized market, the price will be based on the latest trade executed on such trading venue or market where Financial Instruments are predominantly traded, immediately prior to the valuation time. In cases where Financial Instruments are suspended or there is a lack of continuous pricing, the price will be the arithmetic mean of bid quotations from a trading venue or two or more market makers or regular dealers in a comparable size around the valuation time. This will be adjusted by us in a reasonable manner to reflect accrued but unpaid distributions and to account for anticipated transaction costs. For Financial Instruments lacking a pricing source, the value will be determined by us, considering what, in our reasonable opinion, represents the fair value between you and us. The market value of cash will be its nominal value.

2.8. Any values of Funds or Financial Instruments not denominated in your reporting currency will be converted to the reporting currency using the prevailing market exchange rate available to us at the valuation time.

3.1. You understand and agree that any credit facilities provided to you hereunder are on-demand credits and must be fully repaid to us immediately upon our request or upon being compulsorily liquidated, unless otherwise agreed upon specifically. Repayment is due in one sum at the end of the term, on the next business day if the termination date is a public or bank holiday.

3.2. Whenever you obtain credit facilities from us, you also commit to reimbursing us with cash equivalent to the borrowed amount and settling any accrued interest thereon.

3.3. In these Terms, the term "equivalent to" shall refer to a payment of an identical amount and in the same currency.

3.4. In accordance with the Applicable Laws, any credit facilities provided under these Terms will be credited to your Account with us as soon as reasonably possible on the trade date and not on the settlement date of the relevant margin Transaction.

3.5. The loan currency will be based on the specific transaction.

3.6. You must pay interest on the loan amount until fully repaid.

3.7. Interest on any credit facilities extended to you under these Terms will accrue daily at the annualized rate and according to the terms agreed upon between you and us in the Margin rates, which may be adjusted and/or revised by us at any time through the posting of the Fees page on our Website. In the absence of a specific agreement, the actual/365 (or 366 in the case of a leap year) day count convention will apply. We will deduct such accrued interest from your Account periodically without prior notice.

3.8. If any loan is arranged by us with or through another broker, you will bear the responsibility for the interests and fees charged by such broker. These interest and fees will accumulate daily at the annualized rate. You acknowledge that interest rates and fee rates are subject to change without your explicit consent. We will provide notice to you before such changes take effect. In the absence of a specific agreement, the actual/365 (or 366 in the case of a leap year) day count convention will apply. We will deduct such accrued interest and fees from your Account periodically without prior notice, unless fees are factored into the calculation of transaction prices.

4.1. To initiate a margin Transaction, you may submit an Order to us via the Application.

4.2. Upon receipt of your Order, we will verify it against our requirements. If the Order meets these criteria, we will proceed to execute it or forward it for execution. You acknowledge that we reserve the right to reject any Order for a margin Transaction, even if it meets compliance requirements, without providing an explanation.

4.3. Upon execution of the Order, we will debit your Account for the assets paid or delivered, and if applicable, credit your Account for the assets purchased or received.

4.4. It is your responsibility to monitor your margin status and ensure compliance with the conditions outlined in these Terms. You are required to maintain an active margin status, always meet the margin level, and adhere to the requirements specified herein. You must stay informed about all the terms of your margin Transactions and ensure ongoing compliance with the provisions set forth in these Terms.

5.1. When your margin status reaches or falls below the Margin Call level, we reserve the right to issue a margin call. Margin calls may be communicated to you through any agreed means stipulated in the Terms and Conditions.

5.2. A margin call may require you to deposit additional cash into your Account with us and may specify a deadline for the transfer. If no deadline is provided, you must ensure that the transfer is credited to your account with us on the day following the margin call.

5.3. Failure to fulfill a margin call according to its terms may result in immediate action by us, including but not limited to changing your margin status to inactive and initiating liquidation proceedings, in addition to exercising any other rights and remedies available to us under these Terms and our Terms and Conditions.

6.1. All cash and financial assets in the Client’s Account serve as collateral for the conclusion of the credit agreement in question.

6.2. The Company shall specify the minimum collateral required on its Website.

6.3. You must maintain sufficient collateral on your account. You can use or transfer assets as long as the account balance does not fall below the required limit.

6.4. The Company can change the collateral requirements and will notify you of such changes before the changes take effect. If you disagree, you can terminate all affected credit arrangements with the Company, provided all loans and expenses are repaid. Otherwise, the new requirements will apply.

7.1. The loan and interest must be repaid in one amount at the end of the term.

7.2. If you sell the asset purchased with the loan, the proceeds will automatically repay the loan. If the proceeds are insufficient, the Company can debit your cash balance or sell other assets to cover the shortfall.

7.3. If you have multiple credit lines for an asset, the one with the closest expiration date will be repaid first.

7.4. Once the investment loan and additional expenses are fully repaid, the relevant credit line is terminated.

7.5. In case of late payment, the Client must pay default interest as specified on the Company’s Website

8.1. We reserve the right, at our absolute discretion and without any obligation to provide justification to you, to revoke or cancel any undrawn credit facilities extended to you.

8.2. Any such decision will be communicated to you via email or other agreed-upon communication means outlined in the Terms and Conditions, and will take immediate effect.

8.3. Additionally, we retain the right, at our sole discretion and without the need for justification, to demand immediate repayment of any amount, whether in full or in part, that has become due to us.

9.1. By accepting these Terms you grant the Company the right to use your financial instruments as described herein.

9.2. The Company can use these instruments as if it owns them, including reusing them, to secure its commitments.

9.3. This right of use does not prevent you from using or dealing in your financial instruments.

9.4. When exercising the right of use, the financial instruments will be moved to the Company’s account held by the Company.

9.5. In case the Company exercises its right of use, it will return the same or equivalent financial instruments to you, once the relevant loan is fully repaid.

9.6. The right of use and reuse under this section is considered a security collateral agreement.

Last updated: 21 May 2024