KEY INFORMATION DOCUMENT CFD s Generic

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1 KEY INFORMATION DOCUMENT CFD s Geeric

2 KEY INFORMATION DOCUMENT - CFDs Geeric Purpose This documet provides you with key iformatio about this ivestmet product. It is ot marketig material ad it does ot costitute a ivestmet advice. The Key Iformatio documet is required by the law to help you uderstad the ature, risks, costs, potetial gai ad losses of this product ad to help you compare it with other products. Product Product ame: Cotracts for Differece ( CFDs ). Distributor: Offered by APME FX Tradig Europe LTD (the Compay ), a compay registered i Cyprus with registratio umber HE ad authorised by Cyprus Securities ad Exchage Commissio ( CySEC ), with Licece Number 335/17. Alert You are about to purchase a product that is ot simple ad may be difficult to uderstad. What is this product? Type A cotract for differece ( CFD ) is a leveraged cotract, offered by the Compay o a bilateral executio basis. It allows you to obtai a idirect exposure to a uderlyig asset such as securities, idices ad other asset types. This meas you will ever ow the uderlyig asset, but you will make gais or icur losses because of price movemets i the uderlyig asset. You have the choice to buy the CFD to beefit from risig prices i the uderlyig market; or to sell the CFD to profit from the fallig prices. The price of the CFD is derived from the price of the uderlyig market price, which may be either the curret ( cash ) price or a forward ( future ) price. Example If a ivestor has opeed a buy positio ad the price of the uderlyig asset rises, the value of the CFD will icrease - at the ed of the cotract the Compay will pay the differece betwee the closig value of the cotract ad the opeig value of the cotract. Coversely, if a ivestor opeed a sell positio ad the price of the uderlyig asset rises, the value of the CFD will be icreased - at the ed of the cotract the ivestor will pay the Compay the differece betwee the closig value of the cotract ad the opeig value of the cotract. A CFD referecig the uderlyig future price works i exactly the same way except that such cotracts have a pre-defied expiry date a date upo which the cotract either automatically closes or must be rolled ito the ext period. The leverage embedded withi all CFDs has the effect of magifyig both profits ad losses. The exposure is leveraged because the CFD oly requires a small percetage of the otioal value of the cotract to be put dow i advace as iitial margi ad is oe of the key features of tradig CFDs.

3 Ivest or CF D Margi % Levera ge Market Quotatio A 1 1% 200: %x5000 B 1 1% 100: %x8500 C 1 1% 150: %x5500 Iitial Margi Directio Market Directio Loss/P rofit 50 BUY UP Profit 85 SELL UP Loss 55 BUY DOWN Loss Objectives The aim of the CFD is to allow a ivestor to take advatage from leveraged exposure to the movemet i the value of the uderlyig market/asset (up or dow), without the eed to buy or sell the uderlyig market. Whe free margi drops due to price movemet i the opposite directio of the trades, oe must either fud the accout i-order to keep margi level above stop out (automatic system close of ope order) level which is 30% free margi, or close positio(s) to avoid beig stopped out, i.e., automatic close of ope positios. Margi Call otificatio is commuicated through a durable media whe free margi percetage is at 100%. I the case of Futures Cotract CFD s, the ivestor has the optio to either close positio o the predetermied expiry date which is available o the website ad commuicated via durable medium or ca allow for the symbol to Rollover to the ew cotract. Depedig o the directio of the trade BUY/SELL ad the close price of the curret cotract to the ope price of the ew cotract the tradig accout will either receive a credit or debit to compesate the differece ad the system is automated. *With CFD s there is o delivery of the uderlyig asset i regards to commodities. The Compay also retais the ability to uilaterally termiate ay CFD cotract where it deems that the terms of the cotract have bee breached. Iteded Retail Ivestor Iteded Retail Ivestor CFDs are available for ivestors who have kowledge for the fiacial markets ad they are expected to have tradig experiece with leveraged products i the past. It is aticipated that the ivestors will have a uderstadig o how the prices of CFDs are derived, they key cocepts of margi ad how leverage works. Moreover, they must uderstad that tradig leveraged products might cause a loss of their etire ivested capital ad they must have the ability to bear losses. Risk Idicator Lower Risk Higher Risk The Risk The idicator risk idicator ca show assumes you the that risk you ivolved may ot i be these able to products buy or sell compared your CFD to at other price products. you wated It to shows due to how volatility possible of the it is market that the or you product may movemet have to buy ca or sell lead your to CFD fiacial at a price loss that for sigificatly the ivestor. impacts how much you get back.

4 The Risk idicator has bee set to the Highest level. The rate idicates the potetial losses from the product future performace. CFDs are leveraged ad risky products that ca cause losses. Losses caot exceed the amout ivested (egative balace), however you may lose your etire ivested capital. There is o capital protectio agaist market risk, credit risk ad/or liquidity risk. Currecy Risk It is possible to buy or sell CFDs i a differet currecy from the currecy of your accout. The fial pay-out that you might receive depeds o the exchage rate betwee the two currecies. Performace Scearios The below scearios were demostrated to provide you how a ivestmet ca perform. You ca compare them with other products scearios i order to idetify which product is more suitable for you. The scearios preseted are a approximatio of future performace based o evidece from the past performace o how the value of this ivestmet differs ad are ot a exact idicator. The outcome will be based o the market performace ad how log you hold the CFD. The stress sceario idicates the possible outcome i extreme market circumstaces. Sceario Opeig price Trade Size (per CFD): TS Margi %: M Margi Requiremet ( ): MR=P x TS x M Notioal Value of the trade ( ): TN=MR/M CFD % Table 1 BUY Performace Sceario Closig price (ic.spread) chage Profit/Loss SELL Performace Sceario Closig price (ic. spread ,5 609 chage Profit/Loss Favourable Moderate Ufavourable % 0.75% -1.5% 45 22,5-45 Favourable Moderate Ufavourable 1,50% 0,75% -1,50% 45 22,5-45 Stress 570-5% -150 Stress 630 5% -150 What happes if the Compay is uable to pay out The Compay segregates all its cliets fuds from its ow, i differet bak accouts, i accordace with the Law 87(I)2017 ad the related Directive of the Cyprus Securities ad Exchage Commissio for the Safeguardig of fiacial istrumets ad fuds belogig to cliets. Moreover, the Compay participates i the Ivestor Compesatio Fuds. The objective of the ICF is to secure claims of the covered Cliets agaist members of the ICF, through the paymet of compesatio i cases where the member cocered is uable to pay out. The total payable compesatio to each covered Cliet of the Compay may ot exceed the amout of twety thousad Euros (EUR 20,000). For further iformatio, please refer to Cyprus ad Securities ad Exchage Commissio website

5 What are the Costs? Oe-off Etry or exit Costs O-goig Costs Spread Miimum Commissio Swaps The Differece betwee the Sell ad Buy price The miimum fee charged for the service carryig out the trasactio (it refers to stocks ONLY) If you hold a buy or sell positio ope after the market close, you will be subject to Swap Fee. How log should I hold it, ad ca I take moey out early? CFDs have o recommeded holdig period. Provided that the Compay is ope for tradig you ca eter ad exit positios if the markets are available. How ca I complai? You may submit your complait i writig ad addressed to the Compliace Fuctio who is authorized to hadle ad ivestigate complaits that may be submitted to him from our Cliets. You are ecouraged to use the Complaits Form ad submit it i ay of the followig ways: A. By sedig by post or deliverig i perso the attached Complaits Form at the followig address: 67 Spyrou Kypriaou, Samos Ceter 2d Floor, Office 201, Germasogeia 4042 Limassol, Cyprus B. By submittig the Complaits Form electroically at the followig addresses: compliace@apmefx.com ad C) By Facsimile at If you feel that your complait has ot bee resolved satisfactory, you may file a complait through Cyprus ad Exchage Commissio website. Please read our Complaits Procedure for Cliets. Other Relevat iformatio We ecourage you to read the Terms of Busiess, Risk Disclosure ad Warig Notice ad the Best Iterest ad Order Executio Policy. You ca fid the metioed documets, uder the sectio Regulatio. Such iformatio is also available upo request.

Key Information Document CFDs Generic

Key Information Document CFDs Generic Purpose This document provides you with key information about this investment product. It is not marketing material and it does not constitute an investment advice.