Royal Capital LTD is authorized and regulated by the FSA Financial Services Authority and the National Bank Of Republic Of Belarus. This notice is provided in compliance with the requirements of the Financial Services Authority and the NBRB as you intend to enter into contracts for differences among other investment derivatives. This notice cannot and does not disclose or explain all the risks and other significant issues involved in trading CFDs. Joining these types of transactions can carry a high risk. You should not enter into these types of trades until you understand the nature of the trades and the true nature of the risk exposure. Your profit or loss will vary according to the extent of fluctuations in the price of the “underlying markets”.
For many members of the public, these transactions are not convenient; you should then carefully consider whether they are right for you in light of your circumstances and financial resources. If you consider joining this class of operation, you must agree to the following:
1. The high degree of leverage is a particular characteristic of this type of operation. The margin system applied to this type of trade, which generally involves a modest deposit or margin comparatively in terms of the value of the entire contract, implies that a small movement in the indicated market can have a dramatic effect on your trade. If the underlined market move is in your favour, you can make good profits, but even a small move against it can not only cost you the loss of your deposit, it can expose you to a big loss if you don't put a limit contract (put a guaranteed stop loss) with the signature.
2. Foreign markets may involve different risks than the OTC market. In some cases the risk will be higher. The potential for gains or losses in foreign markets or in markets denominated in a foreign currency will be affected by fluctuations in interest rates.
3. You may be required to deposit substantial additional margin, in short order, to maintain your trade. If you do not deposit within the required time your trade will be closed at a loss and you will be liable for any shortfall.
4. Trades made in CFDs will not take place on a recognized market or designated investment exchange. During normal market hours ROYAL CAPITAL LTD will execute Stock CFD orders at Market price or higher. Client orders executed outside normal market hours will be executed at ROYAL CAPITAL LTD prices. Client orders on CFD indices will always be executed at the ROYAL CAPITAL LTD price. ROYAL CAPITAL LTD acts as a “Broker Agency” on these CFD Indices in and out of normal market hours. (see Terms and Conditions for market hours). Close Trades will be traded at the price dictated by the spread quoted at the time of closing regardless of the spread at the opening of the trade, which may be higher or lower. The differential at closing time is not guaranteed. All CFD trades opened with ROYAL CAPITAL LTD must be closed with ROYAL CAPITAL LTD and cannot be closed by any other entity.
5. To enter into such transactions, ROYAL CAPITAL LTD must do so under a two-way agreement form (eg ROYAL CAPITAL LTD Terms and Conditions) in accordance with ROYAL CAPITAL LTD Business Conduct rules, unless you are exempt from doing so. You must be satisfied that the business is being conducted in strict accordance with the Client Agreement and you must report it to the Financial Services Authority if you have reason to believe that it is not.
6. Before placing orders, you should ensure that you understand all the charges to which you will be subject.
7. Investments in CFDs are investments with more risk than operations with ordinary shares, since the leverage can lead to unlimited losses. However, to limit potential losses, and give you peace of mind, clients trading through ROYAL CAPITAL LTD have access to two facilities, a simple Stop Loss or a guaranteed stop loss. Both plain and guaranteed are available only at the discretion of ROYAL CAPITAL LTD. For more details regarding Stop Loss please refer to the Market Information pages. A Stop Loss or Stop Loss order allows you to set a price which, if reached, automatically triggers a sell order (for long positions) or a buy order (for short positions) to close your current position. This facility is available at the discretion of ROYAL CAPITAL LTD when the order is placed either through the online platform or by telephone. With a simple Stop Loss, if the Stock or Index breaks your Stop Loss then your order will be executed when ROYAL CAPITAL LTD has a chance to do so. This could mean that the order is filled at less than your Stop Loss price for long positions or more than your Stop Loss price for short positions.
However, you can use a guaranteed Stop Loss on selected Stocks or Indices. As suggested, this is a Stop Loss Order that is guaranteed to be executed at the price you specify, even if the price of the underlying stock or index makes a sudden move and never touches the price you specified, your position will still be filled. will be closed at the chosen price. This could not be the case with a simple Stop Loss. The Stop Loss feature is available over the phone on most traded stocks (usually on the FTSE100) and indices at the discretion of ROYAL CAPITAL LTD. You also pay a premium for the Stop Your Loss benefit when you place your order, but many would consider this a small price to pay compared to the cost of an unpredictable loss.
It is important to remember that Royal Capital LTD allows you to trade Indices CFDs outside of normal market hours. Prices quoted for Indices CFDs are house prices and are based on market movements. Outside of normal market hours prices are based on the interpretation of how the market would move if it were open. This means that simple and guaranteed Stop Losses could be triggered outside of normal market hours based on movements in the price of the house for the index. Individual Stock CFDs can only be traded when the Underlying Market is open. For specific information about this trade and trading hours, please refer to the Market Information Pages which is part of the Terms and Conditions.
8. Under certain trading conditions it may be difficult or impossible to liquidate a position. This may occur, for example, at times of rapid price changes if the price rises or falls in a trading session so much that trading is restricted or suspended.
9. ROYAL CAPITAL LTD is required to hold your money in segregated accounts and in clearing with liquidity providers, in accordance with FSA and NBRB regulations, but this may not be fully protective.
10. If you deposit collateral as insurance with ROYAL CAPITAL LTD, you are assured that ROYAL CAPITAL LTD will keep it in a safe deposit fund exclusively for you.
11. ROYAL CAPITAL LTD's insolvency or default may lead to positions being liquidated or closed without your consent. In certain circumstances, you will not get back the actual assets you held as collateral and you will have to accept any available cash payments.
If you have reason to believe that ROYAL CAPITAL LTD is not acting in accordance with the representations that were made to you, the terms of Your Client Agreement or the rules of ROYAL CAPITAL LTD, you must complain in writing to the Compliance Officer. of ROYAL CAPITAL LTD and if your complaint is not resolved or you feel dissatisfied with the decision made by ROYAL CAPITAL LTD about your claim, you must report said situation to the Customer Help Line of the Financial Services Authority or to the NBRB.
We maintain our financial stability by hedging against long positions. In the unfortunate event that ROYAL CAPITAL LTD were to face liquidation, private clients are covered by the Financial Services Compensation Scheme.