P R O D U C T D I S C L O S U R E S T A T E M E N T B I N A R Y O P T I O N S GO MARKETS

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1 P R O D U C T D I S C L O S U R E S T A T E M E N T B I N A R Y O P T I O N S GO MARKETS first choice for forex

2 TABLE OF CONTENTS 1. IMPORTANT INFORMATION... 1 NOTES AND DISCLAIMER... 1 HOW TO CONTACT US... 1 ELECTRONIC VERSION OF THE PDS... 1 UPDATED INFORMATION... 1 TREATMENT OF OVERSEAS APPLICANTS... 1 RESTRICTIONS ON THE DISTRIBUTION OF DOCUMENTATION... 1 APPLICATIONS... 1 PRODUCTS COVERED IN THIS PDS... 2 CALL RECORDINGS TERMS AND CONDITIONS ADVICE SUMMARY TABLE KEY FEATURES OF GO MARKETS BINARY OPTIONS... 4 BINARY OPTIONS... 4 CALCULATING PROFIT AND LOSS BENEFITS OF TRADING GO MARKETS BINARY OPTIONS RISKS OF TRADING BINARY OPTIONS... 6 DERIVATIVES RISK... 6 MARKET VOLATILITY... 6 FOREIGN EXCHANGE RISK... 6 GO MARKETS RISK/COUNTERPARTY RISK... 7 DEPOSIT... 7 CLIENT S MONEY... 7 CREDIT RISK... 7 POSSIBLE ILLIQUIDITY OF THE MARKET... 8 TERMINATION OF BINARY OPTIONS BEFORE THE EXPIRY TIME... 8 OPERATIONAL RISKS... 8 CONSEQUENCES OF YOUR DEFAULT... 8 OUR RIGHT TO EXERCISE CERTAIN DISCRETIONS... 8 INFORMATION WE MAKE AVAILABLE... 8 EXECUTION RISK... 8 ELECTRONIC TRADING PLATFORM RISK... 9 REGULATORY RISK... 9 NO COOLING OFF... 9 SUPERANNUATION FUNDS BINARY OPTION S TRANSACTION EXAMPLES... 9 GO MARKETS PTY LTD ABN AFSL i

3 CALL BINARY OPTIONS... 9 PUT BINARY OPTIONS ASIC REGULATORY GUIDE 227 DISCLOSURE BENCHMARKS OPENING AN ACCOUNT THE BINARY OPTION S ACCOUNT WHAT IS A BINARY OPTION S ACCOUNT? HOW ARE THE FUNDS YOU DEPOSIT WITH US HELD? HOW DO YOU GET FUNDS IN AND OUT OF YOUR BINARY OPTION S ACCOUNT? DO YOU GET INTEREST ON YOUR BINARY OPTION S ACCOUNT BALANCE? OPERATING AN ACCOUNT HOW DO YOU OPEN A BINARY OPTION S POSITION? ACCEPTANCE OF ORDERS HOW DO YOU CLOSE OUT A BINARY OPTION S POSITION? GO MARKETS TRADER PLATFORMS DEPOSIT REQUIREMENTS WHAT IS DEPOSIT?...16 INITIAL DEPOSIT...16 YOU ARE RESPONSIBLE FOR SATISFYING THE DEPOSIT REQUIREMENTS FEES AND OTHER COSTS ASSOCIATED FEES...16 CURRENCY CONVERSION CALCULATION FEE...16 DEPOSIT INTEREST ON ACCOUNT BALANCES INTERNATIONAL TRANSFER FEES OTHER FEES AND COSTS TAXATION TAXATION ADVICE DISCLOSURE OF INTEREST PRIVACY POLICY DISPUTE RESOLUTION FINANCIAL OMBUDSMAN SERVICE CONTACT DETAILS ( FOS ) ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING CLIENT AGREEMENT GLOSSARY GO MARKETS PTY LTD ABN AFSL ii

4 1. IMPORTANT INFORMATION NOTES AND DISCLAIMER Glossary Product Disclosure Statement PDS support@gomarkets.com.au ELECTRONIC VERSION OF THE PDS GO Markets Pty Ltd ABN GO we us GO Markets Financial Services Guide FSG Binary Option general information UPDATED INFORMATION TREATMENT OF OVERSEAS APPLICANTS Australian Securities and Investments Commission ASIC RESTRICTIONS ON THE DISTRIBUTION OF DOCUMENTATION HOW TO CONTACT US GO Markets Pty Ltd / Level Collins Street Melbourne VIC 3000 APPLICATIONS GO MARKETS PTY LTD ABN AFSL PAGE 1

5 PRODUCTS COVERED IN THIS PDS OTC over-the-counter Yes No in-the-money out-of-the-money Yes No CALL RECORDINGS 3. ADVICE 2. TERMS AND CONDITIONS FSG Financial Services Guide GENERAL ADVICE Client Agreement 4. SUMMARY TABLE toxic trading GO MARKETS PTY LTD ABN AFSL PAGE 2

6 ISSUE SUMMARY GO Markets Binary Options over-the-counter OTC Derivative Digital Option Yes No All-or-Nothing Option Position Over-the-Counter OTC AUD$500 ONLY Call Expiry Price Put Price Power of Attorney Strike Price Expiry Time HIGHER up Strike Price Expiry Time LOWER Expiry down Total Equity Free Equity LESS Deposit GO MARKETS PTY LTD ABN AFSL PAGE 3

7 Requirement Deposit Requirement Initial Deposit Total Cleared Funds DOES NOT 6 Section Section 7 Financial Ombudsman Scheme FOS Section 18 Section 15 GO Markets Trading Hours GO Markets Office Hours support@gomarkets.com.au Section KEY FEATURES OF GO MARKETS BINARY OPTIONS BINARY OPTIONS Binary Options over-the-counter OTC tradable Yes Derivative No Call Price Strike GO MARKETS PTY LTD ABN AFSL PAGE 4

8 Put Strike Price European American Options Expiry Time American European Options ONLY Expiry Time 6. BENEFITS OF TRADING GO MARKETS BINARY OPTIONS Speculation Hedging 1. Limitation of Loss Section 8 CALCULATING PROFIT AND LOSS Fixed Nothing at All 2. Hedging Investment Payout Specific Percentage Payout 3. Speculation payout Call Binary Option Long Short Put Binary Option TIME EXPIRY PAYOUT RATE 4. Trade in Small Amounts GO MARKETS PTY LTD ABN AFSL PAGE 5

9 DERIVATIVES RISK 5. Market Positions and Strategies MARKET VOLATILITY 6. Profit Potential in Flat Markets 7. Access to Markets in Real Time 8. Real-time Streaming Quotes and Tradable Prices All or Nothing 7. RISKS OF TRADING BINARY OPTIONS DOES NOT ALL FOREIGN EXCHANGE RISK GO MARKETS PTY LTD ABN AFSL PAGE 6

10 Unrealised Profit/Loss free-of-charge DEPOSIT GO MARKETS RISK/COUNTERPARTY RISK Market Maker CLIENT S MONEY Counterparty Credit Licence AFSL Australian Financial Services CREDIT RISK over-the-counter OTC unsecured obligations GO MARKETS PTY LTD ABN AFSL PAGE 7

11 OUR RIGHT TO EXERCISE CERTAIN DISCRETIONS POSSIBLE ILLIQUIDITY OF THE MARKET Liquid Illiquid TERMINATION OF BINARY OPTIONS BEFORE THE EXPIRY TIME closed out sold INFORMATION WE MAKE AVAILABLE OPERATIONAL RISKS EXECUTION RISK CONSEQUENCES OF YOUR DEFAULT GO MARKETS PTY LTD ABN AFSL PAGE 8

12 ELECTRONIC TRADING PLATFORM RISK 8. BINARY OPTION S TRANSACTION EXAMPLES The examples below are for illustrative purposes only. The rates and figures quoted are hypothetical and do not represent actual rates or figures. CALL BINARY OPTIONS Up REGULATORY RISK $43.75 ($25 plus (75% of $25)) USD NO COOLING OFF draw SUPERANNUATION FUNDS PUT BINARY OPTIONS Down GO MARKETS PTY LTD ABN AFSL PAGE 9

13 9. ASIC REGULATORY GUIDE 227 DISCLOSURE BENCHMARKS $43.75 ($25 plus (75% of $25)) USD why not if not, draw BENCHMARK DESCRIPTION HOW DOES GO MARKETS MEET THIS BENCHMARK? RELEVANT SECTIONS IN THE PDS Section 2 Section 3 Section 5 Section 20 Client Qualification Cleared Funds Section 2 Section 11 Section 12 Section 13 Opening Collateral GO MARKETS PTY LTD ABN AFSL PAGE 10

14 Cleared Funds straight through Processing STP Straight through Section 7 hedged Counterparty Risk Hedging Hedging/Hedged Liquidity Partner Client Risk Counterparty Risk Section 7 RG166 Counterparty Risk Financial Resources AFSL Australian Financial Services Licence ASIC RG166 Compliance Officer GO MARKETS PTY LTD ABN AFSL PAGE 11

15 CFO Chief Financial Officer Section 7 Section 7 Section 11 National Australia Bank NAB Client Money Out System Automated Stop GO MARKETS PTY LTD ABN AFSL PAGE 12

16 Section 2 Section 12 Section 20 Suspended or Halted Underlying Assets There are NO margin calls associated with Binary Options. Section 6 Margin Calls 10. OPENING AN ACCOUNT Section 20 Cleared Funds Cleared Funds AUSTRAC GO MARKETS PTY LTD ABN AFSL PAGE 13

17 11. THE BINARY OPTION S ACCOUNT WHAT IS A BINARY OPTION S ACCOUNT? Section 7 Section 9 Section 10 Free Equity Deposit HOW ARE THE FUNDS YOU DEPOSIT WITH US HELD? HOW DO YOU GET FUNDS IN AND OUT OF YOUR BINARY OPTION S ACCOUNT? GO MARKETS PTY LTD ABN AFSL PAGE 14

18 Free Equity PLUS MINUS LESS his summary is NOT a confirmation Trades Booked Trades Booked IS standing facility Trades Booked EXAMPLE Free Equity HOW DO YOU CLOSE OUT A BINARY OPTION S POSITION? DO YOU GET INTEREST ON YOUR BINARY OPTION S ACCOUNT BALANCE? DO NOT 12. OPERATING AN ACCOUNT HOW DO YOU OPEN A BINARY OPTION S POSITION? Section 7 Section 8 GO MARKETS TRADER PLATFORMS long short Real time prices Section 12 ACCEPTANCE OF ORDERS Real time news feeds Technical analysis Account summaries Support A secure website GO MARKETS PTY LTD ABN AFSL PAGE 15

19 13. DEPOSIT REQUIREMENTS WHAT IS DEPOSIT? Deposit Requirement Section FEES AND OTHER COSTS ASSOCIATED FEES INITIAL DEPOSIT money Put Call out of the out of the money Initial Deposit Initial Deposit YOU ARE RESPONSIBLE FOR SATISFYING THE DEPOSIT REQUIREMENTS CURRENCY CONVERSION CALCULATION FEE There are NO margin calls for Binary Options. EXAMPLE Conversion Calculation Fee GO MARKETS PTY LTD ABN AFSL PAGE 16

20 15. TAXATION TAXATION ADVICE Please note that GO Markets DOES NOT provide any taxation advice. DEPOSIT 13 Section GENERAL INTEREST ON ACCOUNT BALANCES INTERNATIONAL TRANSFER FEES Depositing Funds GENERAL Withdrawing Funds Profit or Loss OTHER FEES AND COSTS Credit Card payments PayPal payments Telegraphic Bank Transfer payments GO MARKETS PTY LTD ABN AFSL PAGE 17

21 Taxation of Financial Arrangements 17. PRIVACY POLICY Arrangements TOFA Taxation of Financial NOT Capital Gains Tax CGT Capital Gains Tax DISPUTE RESOLUTION Goods and Services Tax ( GST ) supplies financial 16. DISCLOSURE OF INTEREST GO Markets Support Team Account Manager Section 1 Service FOS Financial Ombudsman GO MARKETS PTY LTD ABN AFSL PAGE 18

22 Ombudsman Service FOS Financial DOES NOT CLIENT AGREEMENT FINANCIAL OMBUDSMAN SERVICE CONTACT DETAILS ( FOS ) G.P.O. Box 3 Melbourne VIC info@fos.org.au Australian Securities and Investments Commission ASIC Section 1 GO Markets Pty Ltd / Level Collins Street Melbourne VIC 3000 (03) (03) compliance@gomarketsaus.com ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING discrepancies illegal activities GO MARKETS PTY LTD ABN AFSL PAGE 19

23 GLOSSARY Please find the terms used throughout the PDS below. FEATURE DESCRIPTION Account AEST or AEDT AFSL ASIC Binary Option Call Binary Option Put Binary Option Cleared Funds Client Agreement Corporations Act Deal or Dealing Deposit Derivative Section 13 European Style Option Expiry Price Expiry Time Free Equity GO Markets, GO, us or we Free Equity Hedging In the Money Margin Call Margin Call Opening a Binary Option s Position OTC Derivatives Providers Out of the Money PDS Position Position Put Binary Option Call Binary Option Strike Price Total Deposit Requirements atthe-money Toxic Trading GO MARKETS PTY LTD ABN AFSL PAGE 20

24 Trading Day Underlying Instrument Underlying Instrument Unrealised Profit/Loss Unrealised Profit/Loss You or Client THIS PDS IS PREPARED ON APRIL 8, 2015 AND ISSUED BY GO MARKETS PTY LTD ABN AFSL NO GO MARKETS PTY LTD ABN AFSL PAGE 21