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PRIIP KIDs

KEY INFORMATION DOCUMENTS

These documents provide you with key information about these investment products. They are not marketing materials. The information is required by law to help you understand the nature, risks, costs, potential gains and losses of these products and to help you compare them with other products.

Investment firm: iCFD Ltd, tel. +35725204600, website: www.iforex.eu
Licensed by: the Cyprus Securities and Exchange Commission (CySEC), License no. 143/11

You are about to purchase a product that is not simple and may be difficult to understand

  • Commodity CFDs

    What is this product?

    This investment product is a Contract for Differences (CFD). A CFD is an Over the Counter (OTC) leveraged financial instrument which value is determined based on the value of an underlying asset. The client makes a profit or a loss on the CFD based on the direction chosen (Buy or Sell) and the direction of the value of the underlying asset. The amount of profit or loss is determined based on the value of the underlying asset at the opening of a transaction and its value at closing of the transaction. The CFD is settled in cash only and the client has no rights whatsoever on the actual underlying asset.

    The objective of the CFD is to profit from changes in the price of the underlying asset. In the case of commodity CFD, such prices are based on the bid price of the commodity. iCFD obtains such prices from its liquidity provider, which in turn obtains and aggregate such prices from the relevant exchanges. The market for commodities is open 5 days a week from Sunday until Friday. For specific trading hours please check iCFD’s website.

    This product is intended for clients who wish to make directional transactions and take advantage of short term price movements on the underlying contract/commodity and have the ability to sustain the risk of loss of their entire invested amount within a short period of time. Therefore, this product is not appropriate for clients who cannot afford to lose their amount invested. In order to succeed in this type of investment, the client should make educated assumptions (and for this purpose may use the tools made available to it by iCFD) on the direction that the price of the underlying asset will go, and should follow closely the rates, as those may change rapidly within a short period of time.

    In order to open a deal on the CFD, the client must have sufficient margin in its account. The normal required margin for commodity contracts is 2%). This means that in order to open a transaction of 10,000 EUR (deal size), the client will need to have a minimum margin of 200 EUR in its account. Respectively, this represents a leverage of 1:50. Margin requirements may decrease at the client’s request, subject to fulfillment of certain criteria. Margin requirements may increase at iCFD’s discretion in cases of extreme market volatility.

    The profit or loss is determined according to the following formula:
    For Buy (Long) positions: Deal size (in units of base asset) x [Close Bid – Open Ask] = P/L (in units of the other asset)

    For Sell (Short) positions: Deal size (in units of base asset) x [Open Bid – Close Ask] = P/L (in units of the other asset)

    The P/L from the closed positions is then converted into the base currency of the client’s account, if different. This is done on the basis of the relevant Bid/Ask rate of the two currencies at the time the position is closed.

    The P/L is also affected by the fees charged by iCFD, as detailed below.

    The P/L is calculated by, and shown on, the trading platform on a continuous basis, and losses on the positions will affect the client’s margin. Should the client’s margin reach 0 (zero), all client’s positions will automatically close which means that the client will realize the losses. Therefore, it is important to maintain such level of margin to support the client’s open positions.

    Polish residents only: In accordance with KNF requirements, should the client’s exposure coverage [% of Equity / Net Exposure] reach 0.8 %, all client’s positions will automatically close which means that the client will realize the losses.

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

    This risk indicator assumes that you keep the product for up to 24 hours. You may not be able to end the product easily or you may have to end at a price that significantly impacts the return on your investment. CFDs may be affected by slippage or the inability to end the product at a desired price due to unavailability of such price in the market. CFDs are OTC products and cannot be sold on any exchange, MTFs or other trading venue.

    This product is a high risk product. The prices of the underlying contract/commodity may fluctuate significantly in a short period of time. If the change in price is against the direction chosen by the client, then the client can experience significant losses over a short period of time up to a maximum of the amount held as margin in the client’s account. However, the client will never owe iCFD any amount in excess of the available funds in the account in light of iCFD’s contractual “Negative Balance Protection”. On the other hand, should the change in price be the same as the direction chosen by the client, then the client may see significant profits over a short period of time.

    Profits and losses are exacerbated by the level of leverage used. Higher leverage ratios result in higher profits if the client chose the correct direction, and higher losses if the direction was against the client.

    Performance Scenarios (assuming no Overnight Financing effects):
    Below are examples of performance scenario of a deal in CFD based on WTI Oil.

    French residents only – In accordance with AMF requirements, all CFD have an intrinsic protection and will be closed when losses reach the required margin for opening the position.

    What happens if iCFD is unable to pay out? In the event that iCFD becomes insolvent and is unable to pay out to its clients, retail clients may be eligible to compensation of up to 20,000 EUR by the Investor Compensation Fund set up by the Cyprus Securities and Exchange Commission.

    What are the costs? iCFD charges a spread when a client buys a CFD. A spread is the difference between the Sell (“Bid”) and Buy (“Ask”) price of the CFD which is multiplied by the deal size. The spread per each underlying asset is detailed on iCFD’s website but each client may have different spreads on all or some of the underlying asset based on the client’s history, volume, activities or certain promotions.

    For the purpose of the example we will assume a transaction of 250 units in WTI Oil with a 4 pips spread. A pip in WTI Oil is the 2nd decimal digit in price (0.01). 250 x 0.04 = 10 USD

    The amount of 10 USD will be deducted from the P/L upon opening the transaction and therefore immediately after opening the transaction the P/L of that transaction will be -10 USD.

    In addition to the above, iCFD charges Overnight Financing (OF) for deals that remain open at the end of the daily trading session. This OF may be subject to credit or debit, calculated on the basis of the relevant interest rates for the currencies in which the underlying instrument is traded, plus a mark-up. The mark-up for commodity pairs is 2.5%.

    If the calculated OF Percentage is positive, it means that an applicable amount will be added (credited) to the client’s account. A negative OF Percentage means that an applicable amount will be subtracted (debited) from the client’s account. If the CFD's quoted currency differs from the account’s currency, it will be converted to the account’s currency at the then prevailing exchange rates.

    Calculation of OF Percentage for Long Positions:

    Calculation of OF Percentage for Short Positions:

    To reach the OF Amount, OF percentage (as calculated above) is multiplied by the deal amount (in units of the base asset), as indicated in the formula below:
    Overnight Financing Amount = Deal Amount × Overnight Financing Percentage

    Upon reaching the relevant instrument’s rollover date, all open CFD positions that are based on a future contract will be rolled-over to the next contract, so that the positions remain open with the new future contract. Upon effectuating such rollover, the position’s open P/L will be adjusted according to the price difference between the expired and new contract prices thus keeping the open P/L unchanged. Upon rollover, the open P/L will only incur a markup spread equal to the spread paid upon opening the position. Information in regards to rollover dates can be found in iCFD’s website. 

    How long should I hold it and can I take the money out early? Commodity CFDs are usually held for less than 24 hours. You can cash out the CFD at any point you wish during trading hours, but it may not be at a price beneficial to you or your investment goals.

    How can I complain? Complaints may be addressed to iCFD via email to complaints@iforex.com.cy. The email should set out the client’s name, account number and nature of the complaint. If the client is unhappy with the Company’s response to its complaint, it may refer the complaint to the Financial Ombudsman of the Republic of Cyprus.

    Other relevant Information: This key information document does not contain all information relating to the product. For other information about the product and the legally binding terms and conditions of the product, please refer to iCFD’s website at https://www.iforex.eu.


    † The figures do not take into account your personal tax situation, which may also affect how much you get back
    ‡ Due to negative balance protection the client cannot lose more than client’s available funds

    For a downloadable version, click here

  • Currency CFDs

    What is this product?

    This investment product is a Contract for Differences (CFD). A CFD is an Over the Counter (OTC) leveraged financial instrument which value is determined based on the value of an underlying asset. The client makes a profit or a loss on the CFD based on the direction chosen (Buy or Sell) and the direction of the value of the underlying asset. The amount of profit or loss is determined based on the value of the underlying asset at the opening of a transaction and its value at closing of the transaction. The CFD is settled in cash only and the client has no rights whatsoever on the actual underlying asset.

    The objective of the CFD is to profit from changes in the price of the underlying asset. In the case of currencies, such prices are determined in interbank transactions whereby banks will quote each other prices of one currency against another currency. iCFD obtains such prices from its liquidity provider, which in turn obtains such prices from market data aggregators that collect data on interbank transactions to produce a market price for each currency against another currency. The market for most currencies is open 24 hours a day, 5 days a week from Sunday at 23:00 CET until Friday 22:00 CET. For specific trading hours please check iCFD’s website.

    This product is intended for clients who wish to make directional transactions and take advantage of short term price movements in the rates of currencies and have the ability to sustain the risk of loss of their entire invested amount within a short period of time. Therefore, this product is not appropriate for clients who cannot afford to lose their amount invested. In order to succeed in this type of investment, the client should make educated assumptions (and for this purpose may use the tools made available to it by iCFD) on the direction that the price of the underlying asset will go, and should follow closely the rates, as those may change rapidly within a short period of time.

    In order to purchase the CFD, the client must have sufficient margin in its account. The normal required margin for currencies is 2% (Except for CNH crosses which are 5%). This means that in order to open a transaction of 10,000 EUR (deal size), the client will need to have a minimum margin of 200 EUR in its account. Respectively, this represents a leverage of 1:50. Margin requirements may decrease at the client’s request, subject to fulfillment of certain criteria. Margin requirements may increase at iCFD’s discretion in cases of extreme market volatility.

    The profit or loss is determined according to the following formula:
    For Buy (Long) positions: Deal size (in units of base asset) x [Close Bid – Open Ask] = P/L (in units of the other asset)

    For Sell (Short) positions: Deal size (in units of base asset) x [Open Bid – Close Ask] = P/L (in units of the other asset)

    The P/L from the closed positions is then converted into the base currency of the client’s account, if different. This is done on the basis of the relevant Bid/Ask rate of the two currencies at the time the position is closed.

    The P/L is also affected by the fees charged by iCFD, as detailed below.

    The P/L is calculated by, and shown on, the trading platform on a continuous basis, and losses on the positions will affect the client’s margin. Should the client’s margin reach 0 (zero), all client’s positions will automatically close which means that the client will realize the losses. Therefore, it is important to maintain such level of margin to support the client’s open positions.

    Polish residents only: In accordance with KNF requirements, should the client’s exposure coverage [% of Equity / Net Exposure] reach 0.8 %, all client’s positions will automatically close which means that the client will realize the losses.

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

     

    This risk indicator assumes that you keep the product for up to 24 hours. You may not be able to end the product easily or you may have to end at a price that significantly impacts the return on your investment. CFDs may be affected by slippage or the inability to end the product at a desired price due to unavailability of such price in the market. CFDs are OTC products and cannot be sold on any exchange, MTFs or other trading venue.

    This product is a high risk product. Currencies may fluctuate significantly in a short period of time. If the change in price is against the direction chosen by the client, then the client can experience significant losses over a short period of time up to a maximum of the amount held as margin in the client’s account. However, the client will never owe iCFD any amount in excess of the available funds in the account in light of iCFD’s contractual “Negative Balance Protection”. On the other hand, should the change in price be the same as the direction chosen by the client, then the client may see significant profits over a short period of time.

    Profits and losses are exacerbated by the level of leverage used. Higher leverage ratios result in higher profits if the client chose the correct direction, and higher losses if the direction was against the client.

    Performance Scenarios (assuming no Overnight Financing effects):

    Below are examples of performance scenario of a deal in CFD based on EUR/USD.


    French residents only – In accordance with AMF requirements, all CFD have an intrinsic protection and will be closed when losses reach the required margin for opening the position.

    What happens if iCFD is unable to pay out? In the event that iCFD becomes insolvent and is unable to pay out to its clients, retail clients may be eligible to compensation of up to 20,000 EUR by the Investor Compensation Fund set up by the Cyprus Securities and Exchange Commission.

    What are the costs? iCFD charges a spread when a client buys a CFD. A spread is the difference between the Sell (“Bid”) and Buy (“Ask”) price of the CFD which is multiplied by the deal size. The spread per each underlying asset is detailed on iCFD’s website but each client may have different spreads on all or some of the underlying asset based on the client’s history, volume, activities or certain promotions.

    For the purpose of the example we will assume a 10,000 EUR transaction in EUR/USD with a 2 pips spread. EUR/USD pip is the 4th decimal digit (0.0001).  10,000 EUR x 0.0002 = 2 USD

    The amount of 2 USD will be deducted from the P/L upon opening the transaction and therefore immediately after opening the transaction the P/L of that transaction will be -2 USD.

    In addition to the above, iCFD charges Overnight Financing (OF) for deals that remain open at the end of the daily trading session. This OF may be subject to credit or debit, calculated on the basis of the relevant interest rates for the currencies in which the underlying instrument is traded, plus a mark-up. The mark-up for currency pairs is 0.75%.

    If the calculated OF Percentage is positive, it means that an applicable amount will be added (credited) to the client’s account. A negative OF Percentage means that an applicable amount will be subtracted (debited) from the client’s account. If the CFD's quoted currency differs from the account’s currency, it will be converted to the account’s currency at the then prevailing exchange rates.

    Calculation of OF Percentage for Long Positions:

    Calculation of OF Percentage for Short Positions:

    To reach the OF Amount, OF percentage (as calculated above) is multiplied by the deal amount (in units of the base asset), as indicated in the formula below:

    Overnight Financing Amount = Deal Amount × Overnight Financing Percentage

    How long should I hold it and can I take the money out early? CFDs on currency are usually held for less than 24 hours. You can cash out the CFD at any point you wish during trading hours, but it may not be at a price beneficial to you or your investment goals.

    How can I complain? Complaints may be addressed to iCFD via email to complaints@iforex.com.cy. The email should set out the client’s name, account number and nature of the complaint. If the client is unhappy with the Company’s response to its complaint, it may refer the complaint to the Financial Ombudsman of the Republic of Cyprus.

    Other relevant Information: This key information document does not contain all information relating to the product. For other information about the product and the legally binding terms and conditions of the product, please refer to iCFD’s website at https://www.iforex.eu.


    † The figures do not take into account your personal tax situation, which may also affect how much you get back
    ‡ Due to negative balance protection the client cannot lose more than client’s available funds

    For a downloadable version, click here

  • Cryptocurrency CFDs

    What is this product?

    This investment product is a Contract for Differences (CFD). A CFD is an Over the Counter (OTC) leveraged financial instrument which value is determined based on the value of an underlying asset. The client makes a profit or a loss on the CFD based on the direction chosen (Buy or Sell) and the direction of the value of the underlying asset. The amount of profit or loss is determined based on the value of the underlying asset at the opening of a transaction and its value at closing of the transaction. The CFD is settled in cash only and the client has no rights whatsoever on the actual underlying asset.

    The objective of the CFD is to profit from changes in the price of the underlying asset. In the case of cryptocurrencies, such prices are determined by demand and supply on cryptocurrency exchanges denominated in USD or another currency if indicated. iCFD obtains such prices from its liquidity provider, which in turn obtains such prices from market data aggregators that collect data from cryptocurrency exchanges to produce a market price for each cryptocurrency against another currency. The market for Cryptocurrencies is open 7 days a week.

    This product is intended for clients who wish to make directional transactions and take advantage of short term price movements in the rates of cryptocurrencies and have the ability to sustain the risk of loss of their entire invested amount within a short period of time. Therefore, this product is not appropriate for clients who cannot afford to lose their amount invested. In order to succeed in this type of investment, the client should make educated assumptions (and for this purpose may use the tools made available to it by iCFD) on the direction that the price of the underlying asset will go, and should follow closely the rates, as those may change rapidly within a short period of time. Furthermore, the client shall always be aware that cryptocurrencies in general, are not considered to be financial instruments covered by MiFID and/or any other EU Regulation and therefore fall outside the scope of Company’s regulated activities.

    In order to open a deal on the CFD, the client must have sufficient margin in its account. The normal required margin for cryptocurrencies is 20%. This means that in order to open a transaction of 10,000 EUR (deal size), the client will need to have a minimum margin of 2,000 EUR in its account. The maximum leverage offered by iCFD in regards to Crypto CFDs is 1:5. Margin requirements may decrease at the client’s request, subject to fulfillment of certain criteria. Margin requirements may increase at iCFD’s discretion in cases of extreme market volatility.

    The profit or loss is determined according to the following formula:
    For Buy (Long) positions: Deal size (in units of base asset) x [Close Bid – Open Ask] = P/L (in units of the other asset)

    For Sell (Short) positions: Deal size (in units of base asset) x [Open Bid – Close Ask] = P/L (in units of the other asset)

    The P/L from the closed positions is then converted into the base currency of the client’s account, if different. This is done on the basis of the relevant Bid/Ask rate of the two currencies at the time the position is closed.
    The P/L is also affected by the fees charged by iCFD, as detailed below.

    The P/L is calculated by, and shown on, the trading platform on a continuous basis, and losses on the positions will affect the client’s margin. Should the client’s margin reach 0 (zero), all client’s positions will automatically close which means that the client will realize the losses. Therefore, it is important to maintain such level of margin to support the client’s open positions.

    Polish residents only: In accordance with KNF requirements, should the client’s exposure coverage [% of Equity / Net Exposure] reach 0.8 %, all client’s positions will automatically close which means that the client will realize the losses.

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

    This risk indicator assumes that you keep the product for up to 24 hours. You may not be able to end the product easily or you may have to end at a price that significantly impacts the return on your investment. CFDs may be affected by slippage or the inability to end the product at a desired price due to unavailability of such price in the market. CFDs are OTC products and cannot be sold on any exchange, MTFs or other trading venue.

    This product is a high risk product. Cryptocurrencies may fluctuate significantly in a short period of time. If the change in price is against the direction chosen by the client, then the client can experience significant losses over a short period of time up to a maximum of the amount held as margin in the client’s account. However, the client will never owe iCFD any amount in excess of the available funds in the account in light of iCFD’s contractual “Negative Balance Protection”. On the other hand, should the change in price be the same as the direction chosen by the client, then the client may see significant profits over a short period of time.

    Profits and losses are exacerbated by the level of leverage used. Higher leverage ratios result in higher profits if the client chose the correct direction, and higher losses if the direction was against the client.

    Performance Scenarios (assuming no Overnight Financing effects):

    Below are examples of performance scenario of a deal in CFD based on Bitcoin.

    French residents only – In accordance with AMF requirements, all CFD have an intrinsic protection and will be closed when losses reach the required margin for opening the position.

    What happens if iCFD is unable to pay out? Cryptocurrency CFDs trading is not considered to be a covered service under the Investor Compensation Fund Notice as available on iFOREX’s website, therefore in the event that iCFD becomes insolvent and is unable to pay out to its clients, a client will not be entitled of compensation for any services related to Cryptocurrency CFD trading.  

    What are the costs? iCFD charges a spread when a client buys a CFD. A spread is the difference between the Sell (“Bid”) and Buy (“Ask”) price of the CFD which is multiplied by the deal size. The spread per each underlying asset is detailed on iCFD’s website but each client may have different spreads on all or some of the underlying asset based on the client’s history, volume, activities or certain promotions.

    For the purpose of the example (see table below) we will assume a transaction of 0.2 units in Bitcoin with a 150 pips spread. A pip in Bitcoin is equal to 1 point in price (1.00). 0.2 x 150 = 30 USD.

    The amount of 30 USD will be deducted from the P/L upon opening the transaction and therefore immediately after opening the transaction the P/L of that transaction will be -30 USD.

    In addition to the above, iCFD charges Overnight Financing (OF) for deals that remain open at the end of the daily trading session. This OF may be subject to credit or debit, calculated on the basis of the relevant interest rates for the currencies in which the underlying instrument is traded, plus a mark-up. The mark-up for Cryptocurrencies can fluctuate significantly due to Cryptocurrencies’ extreme market conditions. When opening a new deal, click on ‘Tools’, then open the ‘Instrument Info’ tab to view the most updated values.

    If the calculated OF Percentage is positive, it means that an applicable amount will be added (credited) to the client’s account. A negative OF Percentage means that an applicable amount will be subtracted (debited) from the client’s account. If the CFD's quoted currency differs from the account’s currency, it will be converted to the account’s currency at the then prevailing exchange rates.

    Calculation of OF Percentage for Long Positions:

    Calculation of OF Percentage for Short Positions:

    To reach the OF Amount, OF percentage (as calculated above) is multiplied by the deal amount (in units of the base asset), as indicated in the formula below:
    Overnight Financing Amount = Deal Amount × Overnight Financing Percentage

    How long should I hold it and can I take the money out early? CFDs on cryptocurrency are usually held for less than 24 hours. You can cash out the CFD at any point you wish, but it may not be at a price beneficial to you or your investment goals.

    How can I complain? Complaints may be addressed to iCFD via email to complaints@iforex.com.cy. The email should set out the client’s name, account number and nature of the complaint. It should be noted that complaints in relation to the trading on cryptocurrencies CFDs cannot be escalated to the Financial Ombudsman of the Republic of Cyprus, therefore if the client is unhappy with the Company’s response he can only apply to the relevant courts.

    Other relevant Information: This key information document does not contain all information relating to the product. For other information about the product and the legally binding terms and conditions of the product, please refer to iCFD’s website at www.iforex.eu.

    Due to extreme market conditions Cryptocurrencies trading terms may change frequently, clients are highly advised to exercise caution and check the Trading Conditions before trading.


    † The figures do not take into account your personal tax situation, which may also affect how much you get back
    ‡ Due to negative balance protection the client cannot lose more than client’s available funds

    For a downloadable version, click here

  • ETF CFDs

    What is this product?

    This investment product is a Contract for Differences (CFD). A CFD is an Over the Counter (OTC) leveraged financial instrument which value is determined based on the value of an underlying asset. The client makes a profit or a loss on the CFD based on the direction chosen (Buy or Sell) and the direction of the value of the underlying asset. The amount of profit or loss is determined based on the value of the underlying asset at the opening of a transaction and its value at closing of the transaction. The CFD is settled in cash only and the client has no rights whatsoever on the actual underlying asset.

    The objective of the CFD is to profit from changes in the price of the underlying asset. In the case of CFDs on ETFs, such prices are determined by tracking the performance of a basket of assets, such as shares, bonds and commodities. iCFD obtains such prices from its liquidity provider, which in turn obtains such prices from market data aggregators that collect and aggregate such data from the relevant exchanges. The market for most ETFs is open 5 days a week from Sunday until Friday. For specific trading hours please check iCFD’s website.

    This product is intended for clients who wish to make directional transactions and take advantage of short term price movements on the aggregate performance of the underlying basket of assets and have the ability to sustain the risk of loss of their entire invested amount within a short period of time. Therefore, this product is not appropriate for clients who cannot afford to lose their amount invested. In order to succeed in this type of investment, the client should make educated assumptions (and for this purpose may use the tools made available to it by iCFD) on the direction that the price of the underlying basket of assets will go, and should follow closely the rates, as those may change rapidly within a short period of time.

    In order to open a deal on the CFD, the client must have sufficient margin in its account. The required margin for most CFDs on ETFs is 2.5%. This means that in order to open a transaction of 10,000 EUR (deal size), the client will need to have a minimum margin of 250 EUR in its account. The maximum leverage offered by iCFD for CFDs on ETFs is up to 1:40. Margin requirements may decrease at the client’s request, subject to fulfillment of certain criteria. Margin requirements may increase at iCFD’s discretion in cases of extreme market volatility.

    The profit or loss is determined according to the following formula:
    For Buy (Long) positions: Deal size (in units of base asset) x [Close Bid – Open Ask] = P/L (in units of the other asset)

    For Sell (Short) positions: Deal size (in units of base asset) x [Open Bid – Close Ask] = P/L (in units of the other asset)

    The P/L from the closed positions is then converted into the base currency of the client’s account, if different. This is done on the basis of the relevant Bid/Ask rate of the two currencies at the time the position is closed.

    The P/L is also affected by the fees charged by iCFD, as detailed below.

    The P/L is calculated by, and shown on, the trading platform on a continuous basis, and losses on the positions will affect the client’s margin. Should the client’s margin reach 0 (zero), all client’s positions will automatically close which means that the client will realize the losses. Therefore, it is important to maintain such level of margin to support the client’s open positions.

    Polish residents only: In accordance with KNF requirements, should the client’s exposure coverage [% of Equity / Net Exposure] reach 0.8 %, all client’s positions will automatically close which means that the client will realize the losses.

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

    This risk indicator assumes that you keep the product for up to 24 hours. You may not be able to end the product easily or you may have to end at a price that significantly impacts the return on your investment. CFDs may be affected by slippage or the inability to end the product at a desired price due to unavailability of such price in the market. CFDs are OTC products and cannot be sold on any exchange, MTFs or other trading venue.

    This product is a high risk product. The prices of the underlying basket of assets may fluctuate significantly in a short period of time. If the change in price is against the direction chosen by the client, then the client can experience significant losses over a short period of time up to a maximum of the amount held as margin in the client’s account. However, the client will never owe iCFD any amount in excess of the available funds in the account in light of iCFD’s contractual “Negative Balance Protection”. On the other hand, should the change in price be the same as the direction chosen by the client, then the client may see significant profits over a short period of time.

    Profits and losses are exacerbated by the level of leverage used. Higher leverage ratios result in higher profits if the client chose the correct direction, and higher losses if the direction was against the client.

    Performance Scenarios (assuming no Overnight Financing effects):

    Below are examples of performance scenario of a deal in CFD based on the US Energy ETF.

    French Residents only – In accordance with AMF requirements, all CFD have an intrinsic protection and will be closed when losses reach the required margin for opening the position.

    What happens if iCFD is unable to pay out? In the event that iCFD becomes insolvent and is unable to pay out to its clients, retail clients may be eligible to compensation of up to 20,000 EUR by the Investor Compensation Fund set up by the Cyprus Securities and Exchange Commission.

    What are the costs? iCFD charges a spread when a client buys a CFD. A spread is the difference between the Sell (“Bid”) and Buy (“Ask”) price of the CFD which is multiplied by the deal size. The spread per each underlying asset is detailed on iCFD’s website but each client may have different spreads on all or some of the underlying asset based on the client’s history, volume, activities or certain promotions.

    For the purpose of the example we will assume a transaction of 145 units in US Energy ETF with a 15 pips spread. A pip in US Energy ETF is the 2nd decimal digit in price (0.01). 145 x 0.15 = 21.75 USD.

    The amount of 21.75 USD will be deducted from the P/L upon opening the transaction and therefore immediately after opening the transaction the P/L of that transaction will be -21.75 USD. 

    In addition to the above, iCFD charges Overnight Financing (OF) for deals that remain open at the end of the daily trading session. This OF may be subject to credit or debit, calculated on the basis of the relevant interest rates for the currencies in which the underlying instrument is traded, plus a mark-up. The mark-up for ETF CFDs is 5%.

    If the calculated OF Percentage is positive, it means that an applicable amount will be added (credited) to the client’s account. A negative OF Percentage means that an applicable amount will be subtracted (debited) from the client’s account. If the CFD's quoted currency differs from the account’s currency, it will be converted to the account’s currency at the then prevailing exchange rates.

    Calculation of OF Percentage for Long Positions:

    Calculation of OF Percentage for Short Positions:

    To reach the OF Amount, OF percentage (as calculated above) is multiplied by the deal amount (in units of the base asset), as indicated in the formula below:
    Overnight Financing Amount = Deal Amount × Overnight Financing Percentage

    In the event of a distribution of cash dividends in relation to an ETF tracking the performance of relevant shares, a dividend adjustment will be made to the Client’s Balance with respect the underlying share’s positions held by the Client at the end of business day which precedes the ex-dividend date. The dividend adjustment shall be calculated based on the size of the dividend, the size of the Client’s position and whether it is a buy or a sell transaction, whereby in long positions the adjustment shall be credited to the Client’s Balance and in short positions the adjustment shall be debited from the Client’s Balance.

    Upon the occurrence of certain events which affect a public company's shares value (Corporate Action), iCFD shall liquidate any open position(s) and remove any limit order(s) in the ETF CFDs which quotes/tracks the performance of the specific share. Corporate Actions include Splits, Rights Offering, Delisting and any other event which materially affects or may materially affect the shares’ price (including material company announcements, takeovers, mergers, insolvency etc.). A list of upcoming Corporate Actions can be found in iCFD’s website.

    How long should I hold it and can I take the money out early? ETFs CFDs are usually held for less than 24 hours. You can cash out the CFD at any point you wish during trading hours, but it may not be at a price beneficial to you or your investment goals.

    How can I complain? Complaints may be addressed to iCFD via email to complaints@iforex.com.cy. The email should set out the client’s name, account number and nature of the complaint. If the client is unhappy with the Company’s response to its complaint, it may refer the complaint to the Financial Ombudsman of the Republic of Cyprus.

    Other relevant Information: This key information document does not contain all information relating to the product. For other information about the product and the legally binding terms and conditions of the product, please refer to iCFD’s website at www.iforex.eu.


    † The figures do not take into account your personal tax situation, which may also affect how much you get back
    ‡ Due to negative balance protection the client cannot lose more than client’s available funds

    For a downloadable version, click here

  • Index CFDs

    What is this product?

    This investment product is a Contract for Differences (CFD). A CFD is an Over the Counter (OTC) leveraged financial instrument which value is determined based on the value of an underlying asset. The client makes a profit or a loss on the CFD based on the direction chosen (Buy or Sell) and the direction of the value of the underlying asset. The amount of profit or loss is determined based on the value of the underlying asset at the opening of a transaction and its value at closing of the transaction. The CFD is settled in cash only and the client has no rights whatsoever on the actual underlying asset.

    The objective of the CFD is to profit from changes in the price of the underlying asset. In the case of CFDs on Indices, such prices are based on the exchange-quoted related future. iCFD obtains such prices from its liquidity provider, which in turn obtains such prices from market data aggregators that collect data from the relevant exchanges. The market for most indices is open 5 days a week from Sunday until Friday. For specific trading hours please check iCFD’s website.

    This product is intended for clients who wish to make directional transactions and take advantage of short term price movements on the underlying future of the index and have the ability to sustain the risk of loss of their entire invested amount within a short period of time. Therefore, this product is not appropriate for clients who cannot afford to lose their amount invested. In order to succeed in this type of investment, the client should make educated assumptions (and for this purpose may use the tools made available to it by iCFD) on the direction that the price of the underlying asset will go, and should follow closely the rates, as those may change rapidly within a short period of time.

    In order to open a deal on the CFD, the client must have sufficient margin in its account. The normal required margin for most index contracts is 2% (Except for Brazil and Turkey 100 which are 4%). This means that in order to open a transaction of 10,000 EUR (deal size), the client will need to have a minimum margin of 200 EUR in its account. Respectively, this represents a leverage of 1:50. Margin requirements may decrease at the client’s request, subject to fulfillment of certain criteria. Margin requirements may increase at iCFD’s discretion in cases of extreme market volatility.

    The profit or loss is determined according to the following formula:
    For Buy (Long) positions: Deal size (in units of base asset) x [Close Bid – Open Ask] = P/L (in units of the other asset)

    For Sell (Short) positions: Deal size (in units of base asset) x [Open Bid – Close Ask] = P/L (in units of the other asset)

    The P/L from the closed positions is then converted into the base currency of the client’s account, if different. This is done on the basis of the relevant Bid/Ask rate of the two currencies at the time the position is closed.
    The P/L is also affected by the fees charged by iCFD, as detailed below.

    The P/L is calculated by, and shown on, the trading platform on a continuous basis, and losses on the positions will affect the client’s margin. Should the client’s margin reach 0 (zero), all client’s positions will automatically close which means that the client will realize the losses. Therefore, it is important to maintain such level of margin to support the client’s open positions.

    Polish residents only: In accordance with KNF requirements, should the client’s exposure coverage [% of Equity / Net Exposure] reach 0.8 %, all client’s positions will automatically close which means that the client will realize the losses.


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

    This risk indicator assumes that you keep the product for up to 24 hours. You may not be able to end the product easily or you may have to end at a price that significantly impacts the return on your investment. CFDs may be affected by slippage or the inability to end the product at a desired price due to unavailability of such price in the market. CFDs are OTC products and cannot be sold on any exchange, MTFs or other trading venue.

    This product is a high risk product. The prices of the underlying index future may fluctuate significantly in a short period of time. If the change in price is against the direction chosen by the client, then the client can experience significant losses over a short period of time up to a maximum of the amount held as margin in the client’s account. However, the client will never owe iCFD any amount in excess of the available funds in the account in light of iCFD’s contractual “Negative Balance Protection”. On the other hand, should the change in price be the same as the direction chosen by the client, then the client may see significant profits over a short period of time.

    Profits and losses are exacerbated by the level of leverage used. Higher leverage ratios result in higher profits if the client chose the correct direction, and higher losses if the direction was against the client.

    Performance Scenarios (assuming no Overnight Financing effects):

    Below are examples of performance scenario of a deal in a CFD based on Japan 225.



    French residents only – In accordance with AMF requirements, all CFD have an intrinsic protection and will be closed when losses reach the required margin for opening the position.


    What happens if iCFD is unable to pay out? In the event that iCFD becomes insolvent and is unable to pay out to its clients, retail clients may be eligible to compensation of up to 20,000 EUR by the Investor Compensation Fund set up by the Cyprus Securities and Exchange Commission.

    What are the costs? iCFD charges a spread when a client buys a CFD. A spread is the difference between the Sell (“Bid”) and Buy (“Ask”) price of the CFD which is multiplied by the deal size. The spread per each underlying asset is detailed on iCFD’s website but each client may have different spreads on all or some of the underlying asset based on the client’s history, volume, activities or certain promotions.

    For the purpose of the example we will assume a transaction of 60 units in Japan 225 with a 7.5 pips spread. A pip in Japan 225 is equal to 1 point in price (1.00). 60 x 7.5 = 450 JPY

    The amount of 450 JPY will be deducted from the P/L upon opening the transaction and therefore immediately after opening the transaction the P/L of that transaction will be -450 JPY.

    In addition to the above, iCFD charges Overnight Financing (OF) for deals that remain open at the end of the daily trading session. This OF may be subject to credit or debit, calculated on the basis of the relevant interest rates for the currencies in which the underlying instrument is traded, plus a mark-up. The mark-up for CFDs on indices is 2.5%.

    If the calculated OF Percentage is positive, it means that an applicable amount will be added (credited) to the client’s account. A negative OF Percentage means that an applicable amount will be subtracted (debited) from the client’s account. If the CFD's quoted currency differs from the account’s currency, it will be converted to the account’s currency at the then prevailing exchange rates.

    Calculation of OF Percentage for Long Positions:

    Calculation of OF Percentage for Short Positions:

    To reach the OF Amount, OF percentage (as calculated above) is multiplied by the deal amount (in units of the base asset), as indicated in the formula below:
    Overnight Financing Amount = Deal Amount × Overnight Financing Percentage

    Upon reaching the relevant instrument’s rollover date, all open CFD positions that are based on a future contract will be rolled-over to the next contract, so that the positions remain open with the new future contract. Upon effectuating such rollover, the position’s open P/L will be adjusted according to the price difference between the expired and new contract prices thus keeping the open P/L unchanged. Upon rollover, the open P/L will only incur a markup spread equal to the spread paid upon opening the position. Information in regards to rollover dates can be found in iCFD’s website. 

    How long should I hold it and can I take the money out early? CFDs on indices are usually held for less than 24 hours. You can cash out the CFD at any point you wish during trading hours, but it may not be at a price beneficial to you or your investment goals.

    How can I complain? Complaints may be addressed to iCFD via email to complaints@iforex.com.cy. The email should set out the client’s name, account number and nature of the complaint. If the client is unhappy with the Company’s response to its complaint, it may refer the complaint to the Financial Ombudsman of the Republic of Cyprus.

    Other relevant Information: This key information document does not contain all information relating to the product. For other information about the product and the legally binding terms and conditions of the product, please refer to iCFD’s website at https://www.iforex.eu.
     


    † The figures do not take into account your personal tax situation, which may also affect how much you get back
    ‡ Due to negative balance protection the client cannot lose more than client’s available funds

    For a downloadable version, click here

  • Share CFDs

    What is this product?

    This investment product is a Contract for Differences (CFD). A CFD is an Over the Counter (OTC) leveraged financial instrument which value is determined based on the value of an underlying asset. The client makes a profit or a loss on the CFD based on the direction chosen (Buy or Sell) and the direction of the value of the underlying asset. The amount of profit or loss is determined based on the value of the underlying asset at the opening of a transaction and its value at closing of the transaction. The CFD is settled in cash only and the client has no rights whatsoever on the actual underlying asset.

    The objective of the CFD is to profit from changes in the price of the underlying asset. In the case of CFDs on Shares, such prices are based on the exchange-quoted share price. iCFD obtains such prices from its liquidity provider, which in turn obtains such prices from market data aggregators that collect data from the relevant exchanges. The market for most shares is open 5 days a week from Sunday until Friday. For specific trading hours please check iCFD’s website.

    This product is intended for clients who wish to make directional transactions and take advantage of short term price movements on the underlying share and have the ability to sustain the risk of loss of their entire invested amount within a short period of time. Therefore, this product is not appropriate for clients who cannot afford to lose their amount invested. In order to succeed in this type of investment, the client should make educated assumptions (and for this purpose may use the tools made available to it by iCFD) on the direction that the price of the underlying asset will go, and should follow closely the rates, as those may change rapidly within a short period of time.

    In order to open a deal on the CFD, the client must have sufficient margin in its account. The required margin for CFDs on Shares varies between 2.5% to 20%. In order to open a transaction of 10,000 EUR (deal size) with 2,5% required margin, the client will need to have a minimum margin of 250 EUR in its account. The maximum leverage offered by iCFD for CFDs on shares is up to 1:40. Margin requirements may decrease at the client’s request, subject to fulfillment of certain criteria. Margin requirements may increase at iCFD’s discretion in cases of extreme market volatility.

    The profit or loss is determined according to the following formula:
    For Buy (Long) positions: Deal size (in units of base asset) x [Close Bid – Open Ask] = P/L (in units of the other asset)

    For Sell (Short) positions: Deal size (in units of base asset) x [Open Bid – Close Ask] = P/L (in units of the other asset)

    The P/L from the closed positions is then converted into the base currency of the client’s account, if different. This is done on the basis of the relevant Bid/Ask rate of the two currencies at the time the position is closed.
    The P/L is also affected by the fees charged by iCFD, as detailed below.

    The P/L is calculated by, and shown on, the trading platform on a continuous basis, and losses on the positions will affect the client’s margin. Should the client’s margin reach 0 (zero), all client’s positions will automatically close which means that the client will realize the losses. Therefore, it is important to maintain such level of margin to support the client’s open positions.

    Polish residents only: In accordance with KNF requirements, should the client’s exposure coverage [% of Equity / Net Exposure] reach 0.8 %, all client’s positions will automatically close which means that the client will realize the losses.

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

    This risk indicator assumes that you keep the product for up to 24 hours. You may not be able to end the product easily or you may have to end at a price that significantly impacts the return on your investment. CFDs may be affected by slippage or the inability to end the product at a desired price due to unavailability of such price in the market. CFDs are OTC products and cannot be sold on any exchange, MTFs or other trading venue.

    This product is a high risk product. The prices of the underlying share may fluctuate significantly in a short period of time. If the change in price is against the direction chosen by the client, then the client can experience significant losses over a short period of time up to a maximum of the amount held as margin in the client’s account. However, the client will never owe iCFD any amount in excess of the available funds in the account in light of iCFD’s contractual “Negative Balance Protection”. On the other hand, should the change in price be the same as the direction chosen by the client, then the client may see significant profits over a short period of time.

    Profits and losses are exacerbated by the level of leverage used. Higher leverage ratios result in higher profits if the client chose the correct direction, and higher losses if the direction was against the client.

    Performance Scenarios (assuming no Overnight Financing effects):

    Below are examples of performance scenario of a deal in CFD based on Apple.

    French Residents only – In accordance with AMF requirements, all CFD have an intrinsic protection and will be closed when losses reach the required margin for opening the position.

    What happens if iCFD is unable to pay out? In the event that iCFD becomes insolvent and is unable to pay out to its clients, retail clients may be eligible to compensation of up to 20,000 EUR by the Investor Compensation Fund set up by the Cyprus Securities and Exchange Commission.

    What are the costs? iCFD charges a spread when a client buys a CFD. A spread is the difference between the Sell (“Bid”) and Buy (“Ask”) price of the CFD which is multiplied by the deal size. The spread per each underlying asset is detailed on iCFD’s website but each client may have different spreads on all or some of the underlying asset based on the client’s history, volume, activities or certain promotions.

    For the purpose of the example we will assume a transaction of 55 units in Apple with a 6 pips spread. A pip in Apple is the 2nd decimal digit in price (0.01).  55 x 0.06 = 3.3 USD.

    The amount of 3.3 USD will be deducted from the P/L upon opening the transaction and therefore immediately after opening the transaction the P/L of that transaction will be -3.3 USD.

    In addition to the above, iCFD charges Overnight Financing (OF) for deals that remain open at the end of the daily trading session. This OF may be subject to credit or debit, calculated on the basis of the relevant interest rates for the currencies in which the underlying instrument is traded, plus a mark-up. The mark-up for CFDs on shares is 5%.

    If the calculated OF Percentage is positive, it means that an applicable amount will be added (credited) to the client’s account. A negative OF Percentage means that an applicable amount will be subtracted (debited) from the client’s account. If the CFD's quoted currency differs from the account’s currency, it will be converted to the account’s currency at the then prevailing exchange rates.

    Calculation of OF Percentage for Long Positions:

    Calculation of OF Percentage for Short Positions:

    To reach the OF Amount, OF percentage (as calculated above) is multiplied by the deal amount (in units of the base asset), as indicated in the formula below:
    Overnight Financing Amount = Deal Amount × Overnight Financing Percentage

    In the event of a distribution of cash dividends in relation to a share CFD, a dividend adjustment will be made to the Client’s Balance with respect the underlying share’s positions held by the Client at the end of business day which precedes the ex-dividend date. The dividend adjustment shall be calculated based on the size of the dividend, the size of the Client’s position and whether it is a buy or a sell transaction, whereby in long positions the adjustment shall be credited to the Client’s Balance and in short positions the adjustment shall be debited from the Client’s Balance.

    Upon the occurrence of certain events that effect a public company's shares value (Corporate Action), iCFD shall liquidate any open position(s) and remove any limit order(s) in the CFD which quotes the specific share. Corporate Actions include Splits, Rights Offering, Delisting and any other event which materially affects or may materially affect the shares’ price (including material company announcements, takeovers, mergers, insolvency etc.). List of upcoming Corporate Actions can be found in iCFD’s website.
    CFDs’ trading outcomes are currently not subject to the Company’s tax environment, and may be subject to the personal tax environment in the clients’ relevant tax residence state.

    How long should I hold it and can I take the money out early? CFDs on shares are usually held for less than 24 hours. You can cash out the CFD at any point you wish during trading hours, but it may not be at a price beneficial to you or your investment goals.

    How can I complain? Complaints may be addressed to iCFD via email to complaints@iforex.com.cy. The email should set out the client’s name, account number and nature of the complaint. If the client is unhappy with the Company’s response to its complaint, it may refer the complaint to the Financial Ombudsman of the Republic of Cyprus.

    Other relevant Information: This key information document does not contain all information relating to the product. For other information about the product and the legally binding terms and conditions of the product, please refer to iCFD’s website at www.iforex.eu.


    † The figures do not take into account your personal tax situation, which may also affect how much you get back
    ‡ Due to negative balance protection the client cannot lose more than client’s available funds

    For a downloadable version, click here

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