Complex and risky products due to the complex methodology behind their price calculation. Synthetic Derivatives are subject to Corporate Events which may occur under the following circumstances
If the value closes at greater than 10,000 then a split is carried out on the product. If the value reaches below 50 then a reverse split is carried out on the product.
In case of a reverse split after the adjustment of any transaction, if the position size will be equal to or less than 0.01, then the Company will close the relevant transaction at the last available market rate and will realise the Profit & Loss.
The maximum exposure for each symbol of the Synthetic Derivatives is 1,5 million.
You must read our Key Information Document on Synthetic Derivatives for information related to this product’s methodology, performance scenarios and risks involved.
The Rollover Fee is calculated on the open positions left overnight. It will be debited at 00:00 GMT, according to the following:
The Company will apply a Currency Conversion Fee on instruments denominated in a currency different to the currency of your account. The fee will not apply to Forex pairs. The fee will apply on Rollover Fees for positions left open overnight.
The Currency Conversion Fee amounts to 0.7% of the trade’s realised net profit and loss, which is reflected in real time in the open position’s unrealised net profit and loss.
The Currency Conversion Fee percentage may be changed from time to time.
Currency conversion may be applied to certain instruments. The applicable rates are available at any time in your self-trading account.
Your account is denominated in EUR and the EUR/USD rate is 1.1639.
You open a 500USD Apple sell position and incur a loss of -$70 (-€60.14). Currency Conversion Fee = 0.7% of position’s net loss.
Calculation: -€60.14 x 0.7% = -€0.42 Overall Net loss = -€ (60.14 + 0.42) = -€ 60.56
Rollover Fee = -€32 Trade Size x Market Price x Rollover Fee %
Calculation: 500 x $149 x 0.05% = $37.25 (€32) €32 x 0.7% = €0.22 Overall Net Loss = -€ (32 + 0.22) = -€32.22
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