PRODUCT DISCLOSURE STATEMENT

MARGIN FX AND CFDS

1TradeMarket Ltd.

TABLE OF CONTENTS

INTRODUCTION …………………………………………………………………………………………………………………….. 4

1TradeMarket GENERAL INFORMATION…………………….………………………………………………………….…………. 4

PERSONAL FINANCIAL POSITION DISCLAIMER………………………………………………………………………………… 4

NOTICE OF RISK……………………………………………………………………………………………………………………… 4

TAX IMPLICATIONS DISCLAIMER……………………………………………………………………………………………………..4

FINANCIAL ADVICE……………………………………………………………………………………………………………………. 4

MODIFICATION OF PDS………………………………………………………………………………………………………………. 4

JURISDICTION…………………………………………………………………………………………………………………………...5

TERMS OF BUSINESS……………………………………………………………………………………………………………………5

USE OF THIRD PARTY MONEY MANAGERS, SOFTWARE OR PLUGINS………………………………………………………… 5

ESTABLISHING YOUR ACCOUNT………………………………………………………………………………………………….. 6

FUNDING YOUR ACCOUNT………………………………………………………………………………………………………… 6

CONFIRMATIONS OF TRANSACTIONS………………………………………………………………………………………….…6

CLIENT MONIES………………………………………………………………………………………………………………………..6

COUNTERPARTY RISKS-HEDGING…………………………………………………………………………………………………..7

COUNTERPARTY RISK-FINANCIAL RESOURCES………………………………………………………………………….……… 7

SUSPENDED OR HALTED UNDERLYING ASSETS………………………………………………………………………………… 8

MARGIN CALLS…………………………………………………………………………………………………………………………8

LIQUIDATION .…………………………………………………………………………………………………………………………. 8

RATES, FEES AND COSTS…………………………………………………………………………………………………………….. 8

FINANCING CHARGES………………………………………………………………………………………………………………… 9

DISPUTE RESOLUTION………………………………………………………………………………………………………………… 9

COOLING-OFF ARRANGEMENTS…………………………………………………………………………………………………….10

TRADING HOURS………………………………………………………………………………………………………………………..10

WHAT IS AN OTC CONTRACT……………………………………………………………………………………………………….. 10

MARGIN OBLIGATIONS TO 1TradeMarket……………………..……………………………………………………………………. 10

MARGIN FX CONTRACT………………………………………………………………………………………………………………..10

SIGNIFICANT RISKS OF MARGIN FX CONTRACTS EXPLAINED………………………………………………………

CONTRACTS FOR DIFFERENCE (“CFDs”)………………………………………………………………………………………….. 16

SIGNIFICANT RISKS OF CONTRACTS FOR DIFFERENCE CONTRACT EXPLAINED………………………………..……….. 17

GENERAL RISKS OF PRODUCTS……………………………………………………………………………………………………. 18

CYBER SECURITY RISK AND DISCLAIMER OF LIABILITY...………………………………………………………………….…… 20

GLOSSARY……………………………………………………………………………………………………………………………… 20

PRODUCT DISCLOSURE STATEMENT

2 | Product Disclosure Statement | 1TradeMarket

The information and any general advice in this PDS

INTRODUCTION

does not take into account your personal

objectives, financial situation and needs. Before

This Product Disclosure Statement (PDS) is dated

trading in the products referred to in this PDS, you

May 10th, 2018 and was prepared by 1TradeMarket

should read this PDS and be satisfied that any

Ltd. who is required to

trading you undertake in relation to these products

give you this PDS because it is deemed to be the

is appropriate in view of your objectives, financial

issuer of financial products which are derivatives.

situation and needs as well as considering the risks

This PDS document seeks to explain to you the

associated with dealing in these products. You

significant features of our financial products,

should read all sections of this PDS before making

including their risks, benefits and costs, in a clear

a decision to acquire the financial products

and concise manner. Through reading this PDS

described herein. This PDS is subject to the

we hope to provide you with sufficient information

provisions of the Terms and Conditions. Before

to make an informed decision regarding acquiring

making a decision about acquiring our financial

our financial products.

products you should also read our Financial

Services Guide (“FSG”) and Terms and Conditions

This document is our PDS for Margin Foreign

in their entirety.

Exchange Contracts (“Margin FX Contracts”) and

Contracts for Difference (“CFD”).

NOTICE OF RISK

If you have any questions regarding our products

or this PDS, please contact us, or visit our website

Margin FX Contracts and CFDs are considered

at www.1trademkt.com.

speculative products which are highly

leveraged and carry significantly greater risks

than non-geared investments, such as shares.

1TradeMarket GENERAL

You should not invest in Margin FX or CFD

INFORMATION

products unless you properly understand the

nature of these products and are comfortable

1TradeMarket Ltd. registered in St. Vincent and the

with the attendant risks. You should obtain

Grenadines,

financial, legal, taxation and other professional

(“1TradeMarket”,

advice prior to entering into a Margin FX or CFD

“1TradeMarket” “we” or “us”), is an issuer of

contracts to ensure this is appropriate for your

Derivatives: Exchange traded and Over the

objectives, needs and circumstances.

Counter

(OTC) Margin FX Contracts and CFD

products.

TAX IMPLICATIONS DISCLAIMER

Contact Information

We recommend that you obtain independent

taxation and accounting advice in relation to the

Address:

Griffith Corporate

impact of Margin FX or CFD gains and losses on

Centre Beachmont, Kingston,

your particular financial situation. Trading in

St. Vincent and the Grenadines

Margin FX and CFD products has the potential

for generating substantial profits and the

Phone (UK):

potential for generating substantial losses.

Email:

support@1trademkt.com

FINANCIAL ADVICE

compliance@1trademkt.com

OTC and exchange traded contracts can be

Website:

www.1trademkt.com

highly leveraged and speculative with a high

degree of risk. Potential investors and traders

should be experienced in Margin FX and CFD

PERSONAL FINANCIAL POSITION

products or understand and accept the risks of

DISCLAIMER

investing in OTC contracts.

We recommend that you consult your financial

3 | Product Disclosure Statement | 1TradeMarket

adviser or obtain other independent advice before

trading in the products referred to in this PDS.

1TradeMarket accepts Margin FX and CFD order

1TradeMarket does not and will not give you personal

instructions via the electronic trading platform(s)

financial product advice and this PDS does not

You are required to access the electronic trading

constitute a recommendation or opinion that the

platform(s) on a daily basis to confirm that any

products referred to in this PDS are appropriate

order instructions you submitted have in fact

to you.

been received by us, to re-confirm all orders that

you placed with us, to review order confirmations

we provided to ensure their accuracy and

MODIFICATION OF PDS

monitor your Margin obligations. Any order

discrepancies identified must be reported to us

The information in this PDS is subject to change

immediately.

from time to time and is up to date as of the date

of this document. If there is any material change

1TradeMarket will provide all clients, via the electronic

to this information, we will issue a new or

trading platform, with access to both daily and

supplementary PDS with the new information.

historical account statements allowing you to

You will be able to find the updated information

check your open positions, Margin requirements

on our website at www.1trademkt.com or by

and cash balances, and trading confirmations.

contacting us.

Should you have any queries relating to your

statements we encourage you to contact us.

JURISDICTION

1TradeMarket does not guarantee the performance, return

The offer to which this PDS relates is available only

of capital from, or any particular rate of return of

to persons receiving the PDS in 1TradeMarket registered

a Margin FX or CFD product. You may lose more

jurisdictions. This PDS does not constitute an offer

than the amount of funds in your account and

or invitation in any place which, or to any person to

should only invest risk capital you can afford to

whom, it would not be lawful to make such an offer

lose. Please note that the historical financial

or invitation. The distribution of this PDS

performance of any Margin FX or CFDs or

(electronically or otherwise) in any jurisdiction

underlying instrument/market is no guarantee or

outside 1TradeMarket registered jurisdictions may be

indicator of future performance.

restricted by law and persons who come into

possession of this PDS should seek advice on

The act by 1TradeMarket of deducting fees from a Client

and observe any such restrictions. Any failure to

Account on behalf of a third party or referring to a

comply with such restrictions may constitute a

third-party asset manager, software vendor or

violation of applicable laws.

plugin on 1TradeMarket website or elsewhere, is not an

endorsement of that third party or its software. 1TradeMarket

takes no responsibility whatsoever for any losses

TERMS OF BUSINESS

incurred by the Client on behalf of third party,

Money Manager or assigns, in connection with a

This PDS is an important legal document and its

third party or its software.

terms are binding on you. Additional legal terms

governing our relationship are detailed in the 1TradeMarket

1TradeMarket reserves the right in its absolute discretion to

“Terms and Conditions”.

cancel, unwind, close out, repair, reinstate if in 1TradeMarket

view, there has been an actual, suspected or

1TradeMarket Terms and Conditions must be read and

potential breach of this Agreement, or 1TradeMarket

agreed to before a contract is entered into. When

believes acting in such a way is necessary to protect

you use our services, you will be bound to our

its own interests, or the interests of clients.

Terms and Conditions.

In order to open an account, you are required to

USE OF THIRD PARTY MONEY

complete, sign, and return an online Application.

MANAGERS, SOFTWARE OR

Your Application to open an account must be

PLUGINS

approved by 1TradeMarket. 1TradeMarket reserves the right to

refuse to open an account for any person.

The Client acknowledges and agrees, and will

4 | Product Disclosure Statement | 1TradeMarket

ensure that each Authorised User acknowledges

and agrees, that:

The Client is wholly responsible for managing the

risks (including the risk of financial loss) associated

1TradeMarket is authorised to deduct fees from the Client

with using third party payment processors, software

Account, upon receipt by 1TradeMarket of confirmation that

or plugins, however they are characterized.

the Client has elected to subscribe to a particular

third-party payment processors, software or plugin.

1TradeMarket does not authorize or endorse any third-

party payment processor(s), software or

1TradeMarket is entitled to refuse to allow or terminate,

plugins. The Client is aware of the risks associated

refuse access or otherwise impose limitations on

with third party payment processors, software or

certain third-party payment processors, software or

plugins, all of which may result in substantial

plugins at any time, without reason.

financial loss. Risks include: loss of control of

trades; loss of money, loss due to latency, loss due

1TradeMarket does not accept

―cash equivalents as

to technical error, potentially misleading claims

opening collateral (e.g. no securities as deposits).

made by Money Managers, software vendors;

software not working with 1TradeMarket Online Platform(s);

All deposits must be cleared funds before they will

being subject to a Margin Call or Forced

be available to you for trading. This can take up to

Liquidation; and fraudulent or other illegal activity

48 hours, or longer over non-banking days.

by Money Manager or software vendor.

When transferring funds to 1TradeMarket you must ensure

that the funds are appropriately referenced with

ESTABLISHING YOUR TRADING

your account number to enable us to easily identify

ACCOUNT

your funds and apply them to your account

promptly.

You need to establish an Account by completing

the application form on t h e C L M website or by

1TradeMarket will only act on funds that have cleared, so

contacting 1TradeMarket directly.

we recommend that you maintain a sufficient

Margin in your account at all times to maintain your

By opening an Account, you agree to the Account

open positions.

Terms.

1TradeMarket does not accept funds transferred from third

Before you enter into a transaction, 1TradeMarket will

parties, so it is your obligation to ensure that all

require you to deposit an Initial Margin. This is

funds transferred to us are an account under your

paid to 1TradeMarket (and is not held on your behalf).

name. We may, in our absolute discretion,

After you make a transaction, Confirmation of the

without creating an obligation to do so, return

transaction will be given (such as being reported

any funds transferred or received from a third

online or in an online account statement or

party, back to the account from which it was

record).

transferred.

FUNDING YOUR ACCOUNT

1TradeMarket will not accept any liability or responsibility

for any losses that you may suffer as a result of,

or arising out of, or in connection with, us

Once your application has been approved you

returning any transfer of moneys from a third

may fund your account in a number of ways.

party, including any losses incurred by banks or

payment processors.

Clients may deposit funds, as opening and

ongoing collateral. 1TradeMarket accepts the following

CONFIRMATIONS OF

forms of payments:

TRANSACTIONS

• credit cards

• debit cards

The confirmation of your transactions, may be

• bank transfer

obtained by accessing the daily statement online,

• electronic wallets

which you can print. Once you have entered an

order into the online trading platform, the system

5 | Product Disclosure Statement | 1TradeMarket

may report the main features of your transaction in

counterparties and other organizations 1TradeMarket hold

“pop-up” window. This is a preliminary

client monies with. If 1TradeMarket or its counterparties

notification for your convenience and is not

financial condition deteriorates then this place at

designed to be a Confirmation.

risk the ability to return client monies and you may

suffer unrecoverable losses.

If you provided 1TradeMarket with an e-mail or other

electronic

address,

you consent to

As client funds are co-mingled with funds from

Confirmations being

sent electronically,

other clients in the segregated client account there

including by way of the information posted to

is a likelihood that your funds may be used to cover

your Account in the online trading platform. It is

payment obligations of other clients and you may

your obligation to review the Confirmation

suffer losses due to defaults by other clients.

immediately to ensure its accuracy and to report

any discrepancies within forty-eight hours.

1TradeMarket does not accept payments from or make

payments to any third parties.

CLIENT MONIES

1TradeMarket is entitled to retain all interest earned on

client moneys held in segregated accounts with a

1TradeMarket maintain and apply a clear policy in

bank or approved deposit-taking institution. The

relation to the use of client money. Please be

rate of interest earned by 1TradeMarket on this account is

aware that any money deposited into your

determined by the provider of the deposit facility.

trading account is deposited with other client

moneys in our segregated client account and

co-mingled with other client deposits. This

COUNTERPARTY RISK - HEDGING

money is applied to client or settlement

obligations to pay for agreed fees, margins and

1TradeMarket maintains a written policy to manage its

other clearing costs.

exposure to market risk from clients’ open

positions. This includes a risk management and

You should be aware that, for client accounts

compliance system in place to manage (hedge)

1TradeMarket may use client moneys in the account to

our trading exposure and assessing any new

meet obligations in connection with margining,

and current hedge counterparties.

guaranteeing, securing, transferring, adjusting or

settling dealings in derivatives

(not just these

Given that you are dealing with 1TradeMarket as

Margin FX, Binaries, and CFDs) by 1TradeMarket, including

counterparty to every OTC transaction, you will

dealings on behalf of people other than the client

have an exposure to us in relation to each

whose moneys were deposited into the account.

transaction. This is common to all OTC financial

market products. You are reliant on 1TradeMarket ability to

Monies deposited into your trading account to

meet its counterparty obligations to you to settle

meet margins, deposits, fees, transactions

the relevant contract. 1TradeMarket may choose to limit this

settlement, or other costs may be forwarded (if

exposure by entering into opposite transactions as

applicable) to our licensed third party clearing

principal in the wholesale market in relation to

and execution providers, and a p p l i e d against

its exposures with clients.

your margin, exchange, fee and settlement

obligations.

With respect to FX Contracts, the hedging

Client monies held for future transactions will be

counterparty is reliant on the performance of

kept in the segregated client account. Although

counterparties

(“liquidity providers”) with which it

funds are kept in a segregated account you may not

offsets its exposure. An assessment of the hedge

be afforded absolute protection.

counterparty takes into account the risks involved

when dealing with them and ensures that the

1TradeMarket enter into arrangements with third party

hedge counterparty is of creditable financial

execution and clearing providers to facilitate

standing, licensed by a comparable regulator, and

transactions and settlements and uses monies

are of sound reputation. The hedging

received for Margin Calls and settlements for this

counterparty will use only liquidity providers which

purpose. Clients need to be aware that they are

are substantial banks or substantial counterparties.

indirectly exposed to the financial risks of these

1TradeMarket do take on the risk that our counterparties may

6 | Product Disclosure Statement | 1TradeMarket

become insolvent or fail to meet their obligations to

financial requirements are maintained include,

1TradeMarket.

but are not limited to, monthly monitoring of

adjusted surplus liquid funds calculation,

1TradeMarket deal with some of the most respected

conducting a daily client cash segregation

institutions in the industry as liquidity providers

calculation and transferring money owed to clients

to limit the counterparty risks. Currently our

to segregated client accounts if needed.

liquidity providers are Goldman Sachs, Morgan

Stanley, HSBC, Commerzbank, Credit Suisse,

The credit risk which you have on 1TradeMarket depends

Lucid, UBS AG, Barclays, Citibank, JP Morgan,

on its solvency generally as well as on the

and Deutsche Bank. Our Providers may change

amount (and kind) of its capitalization, its cash

on a regular basis.

flow, all of its business risks, its client and

financial product concentration risks, its

It is possible that 1TradeMarket hedging counterparty may

counterparty risks for all of its business and

become insolvent or it is possible that other

transactions, its risk management systems and

clients of the hedge counterparty may cause a

actual implementation of that risk management.

default which reduces the financial resources or

capacity for the hedge counterparty to perform its

Your credit risk will fluctuate throughout the day

obligations owed to 1TradeMarket under the hedge

and from day to day, including due to the implied

contracts.

credit risk on hedging counterparties, whose

credit risk to 1TradeMarket (and so indirectly to you) cannot

If 1TradeMarket defaults on its obligations, investors may

be assessed or verified on a continuous basis or

become unsecured creditors in an administration

perhaps at all.

or liquidation and will not have recourse to any

underlying assets in the event of 1TradeMarket insolvency.

We receive input and reviews from our external

accountants and legal providers, our accounts

It is therefore possible that 1TradeMarket might not fully

are independently audited at the end of the

recover from its hedge counterparty due to reasons

financial year.

not arising from your own positions, or it may incur

costs in seeking the recovery or choose to

SUSPENDED OR HALTED

terminate recovery efforts early, thereby reducing

UNDERLYING ASSETS

the proceeds available to 1TradeMarket to allocate in its

discretion to you under the contract issued to you.

It is important to understand that you have no rights

1TradeMarket do not permit the opening of any new

positions where there is trading halt over the

or beneficial interest in any contract which 1TradeMarket has

underlying asset or trading in the underlying asset

with its hedge counterparty and you cannot force

has been suspended on the relevant Exchange

1TradeMarket to make any decision about seeking recovery

against its hedge counterparty. You are dependent

upon which the underlying asset is listed.

on 1TradeMarket taking that action to seek recovery and how

You will not be able to enter into any new

it pursues that action, although 1TradeMarket would act

honestly, fairly and efficiently in deciding if and how

transactions where there is a trading halt or

suspension in the underlying asset:

to pursue that recovery action.

If trading in the underlying asset is suspended or

halted by the relevant Exchange (or the relevant

COUNTER PARTY RISK - FINANCIAL

index is suspended), the position, where possible,

RESOURCES

will be valued by 1TradeMarket for your account.

1TradeMarket maintain and apply a written policy to

Foreign exchange markets trade continuously.

ensure the ongoing maintenance of adequate

They open at 05:00pm American EST Sunday

financial resources. We further maintain a

evening and close at 05:00pm, American EST on

detailed Risk Register, in which key risks of our

Friday. They are open

24 hours during this

business are identified, reviewed and controls

period. Prices are continuously streamed during

implemented.

this period. Because foreign exchange is not an

exchange-traded product, it is not possible to

Steps taken on a daily basis to ensure 1TradeMarket

suspend or halt the streaming of these prices.

7 | Product Disclosure Statement | 1TradeMarket

The calculation of the price to be paid (or the

payout to be received) for Margin FX or CFD

MARGIN CALLS

products offered by 1TradeMarket, at the time the contract

is purchased or sold, will be based on our best

1TradeMarket has a written policy that outlines how we

estimate of market prices and the expected level of

margin our clients. There are two types of

interest rates, implied volatilities and other market

margin calls:

conditions during the life of the financial contract

and is based on a complex arithmetic calculation.

Initial Margin. This is the initial deposit required

The calculation will include a spread in favor of

by 1TradeMarket to cover our risk and will be used to meet

1TradeMarket. The contract prices

(or the payout

the client’s obligation before opening a new

amounts) offered to clients hedging, trading or

position.

speculating on market prices may differ from

prices available in the primary or underlying

Variation Margin. This is the margin that has to

markets where contracts are traded. This is due

be met by the client should there be adverse

to the spread favoring 1TradeMarket in the price

market movements. If the client wishes to keep

calculation. Different spreads are used depending

the position open, then the variation margin call

on the currency pair traded.

MUST be met to avoid 1TradeMarket from exercising its

right to close the open position.

1TradeMarket earns its income from the business spread (or

Maintenance Margin - to maintain the margin cover

margin) that we apply to our Margin FX Contracts,

in light of adjustments to the percentage of value of

and CFD products. This is the difference between

the underlying allowed as margin cover or other

the rate at which we buy and sell the financial

trading platform adjustments not related to the

instruments

(i.e. between the wholesale price

price movements of the financial products.

achieved by 1TradeMarket and your trade price). This

spread is incorporated into the rates quoted to

1TradeMarket monitors all open positions of its clients on

you and is not an additional charge or fee

mark to market basis. In case of adverse

payable by you. These spreads will differ

movements in the markets that cause a loss to a

depending on the currency pairs traded or value of

client, the client will be notified to fund the

the CFD’s underlying asset. Accordingly, the

account by phone, email or WhatsApp

decision to transact at a particular rate will always

message to the client. Our MT4 sends

be your decision. However, once you agree to a

electronic notification to all clients who trade

particular exchange rate that is the total amount

on it.

payable by you to 1TradeMarket.

LIQUIDATION

1TradeMarket offers several different trading accounts that

feature different spreads and charges:

1TradeMarket first warning is sent when client equity falls

below 80% of required margin, to notify clients that

Standard Accounts - Standard accounts

they are getting close to automatic trade

feature spreads from 1 pip without a commission.

liquidation. Clients are stopped out if their account

Plus Accounts

- Plus accounts feature

balance falls below 50% of margin requirements

spreads from 0.0 pip with a commission of $4.00

and their positions may be liquidated without

per 100,000 traded.

further reference to the client.

Pro Accounts - Pro accounts feature spreads

When a margin call is triggered o n an account

from 0.0 pip with a commission of $2.50 per

then individual positions will be liquidated until the

100,000 traded.

remaining equity is sufficient to support existing

position(s). In deciding what positions will be

By using or continuing to use our services, you

individually liquidated the largest losing position

agree that:

will be closed first during liquidation.

Fees must be paid to us immediately upon

execution of the trade and will be deducted from

RATES, FEES AND COSTS

your account in accordance with the Application

Terms & Conditions.

8 | Product Disclosure Statement | 1TradeMarket

by debiting or crediting the client’s trading

All fees and charges received by 1TradeMarket as described

account with the amount calculated in accordance

in this PDS and the FSG (other than third party fees

with the Rollover/Interest fees. During the rollover

and charges) are a benefit given to us by you, in

period trading will be disabled to prevent widened

exchange for the market making and dealing

spreads caused by the “end of day” in New York.

services provided by 1TradeMarket.

This can last for 5 to 10 minutes and you will not be

able to trade at this time. You may suffer financial

1TradeMarket do not charge volume-based or asset-based

loss or gain as a result. 1TradeMarket does not accept or

fees for any advice we provide.

bear any liability whatsoever in relation to the

rollover period.

1TradeMarket does not provide a market amongst or

between clients for investments or speculations.

The swap that is applied will also be tripled for

As stated above, each product purchased (or sold)

positions held on the Wednesday rollover. Due to

by you is an individual agreement made between

the settlement structure within the spot market,

you and 1TradeMarket and is not transferable, negotiable

trades that are open on Wednesday will be settled

or assignable to or with any third party.

on the following Monday and therefore there is a

need to account for interest earned/charged over

1TradeMarket reserves the right to pass on administration

this period.

charges such as (but not limited to) credit card

merchant fees, electronic wallet fees and bank wire

transfer fees. Full details on such fees are available

from our website.

Your privacy is important to us. The information

you provide 1TradeMarket and any other information

Bank charges and fees imposed on 1TradeMarket to clear

provided by you in connection with your

your funds or in respect of your payments will also

account will primarily be used for the

be charged to your Trading Account.

processing of your account. We may use this

information to send you details of other services

FINANCING CHARGES/SWAPS

or provide you with information that we believe

may be of interest to you. Full details of our

In the event of you holding a Margin FX Contract,

or CFD position overnight you may be paid or

www.1trademkt.com

have to pay interest depending upon your

position.

DISPUTE RESOLUTION

For example, if you are

“long” a foreign

1TradeMarket has an internal dispute resolution process in

exchange contract overnight you may receive

place to resolve any complaints or concerns you

an interest payment whereas if you are “short” a

may have, quickly and fairly. Any complaints or

foreign exchange contract overnight you will be

concerns should be directed to the Complaints

charged interest.

Officer to compliance@1trademkt.com.

If you are “long” an index CFD overnight, you will be

charged interest whereas if you are “short” an index

We will provide acknowledgement of receipt of

CFD overnight you may be paid interest.

written complaints within

3 business days and

seek to resolve and respond to complaints within

Interest calculations are based on the total

30 business days of receipt. We will investigate

notional value of your open position and are

your complaint, and provide you with our

calculated at LIBOR (London Interbank Offer Rate)

decision, and the reasons on which it is based, in

or LIBID (London Interbank Bid Rate) plus or minus

writing.

a margin. Interest is calculated daily and posted

to your account at the end of each day.

If you are dissatisfied with the outcome, you have

the right to engage legal counsel.

All the positions which remain open until 23:59

(Server time) will be subject to interest

COOLING-OFF ARRANGEMENTS

earned/charged. The positions will be rolled over

9 | Product Disclosure Statement | 1TradeMarket

subject to margin requirements and clients must

deposit funds for security / margining purposes.

There are no cooling-off arrangements for the

Accordingly, you are responsible to meet all margin

Margin FX or CFDs offered by 1TradeMarket. This means

requirements required by 1TradeMarket. When you place a,

that when you enter a transaction with 1TradeMarket you do

CFD or FX transaction and while that transaction

not have a right to return the product and you do

remains open you need to have sufficient free

not have the right to request 1TradeMarket to repay the

margin in your account to satisfy the margin amount

money you have paid to acquire the product.

for the relevant number of contracts, FX Contracts

Should you change your mind after entering into

or CFDs you hold. Margin requirements may vary

a transaction with 1TradeMarket, you should close out your

between customers and 1TradeMarket reserves the right to

position by entering into an offsetting and

change margin requirements on a per customer

opposite transaction.

basis. Margin requirements can be changed for

regulatory reasons, changes in your account size,

TRADING HOURS

currency pair or position traded, volatility, acts of

God, or any unknown factors that 1TradeMarket may

1TradeMarket provides trading facilities via its Trading

presume in the marketplace that could negatively

Platform from

05:00pm American EST Sunday

impact its current margin risk assessment. Please

evening and close at 05:00pm, American EST on

note that an increased margin requirement may

Friday. In the event that the Trading Platform is

mean that you are required to transfer additional

unavailable due to a systems disruption, then the

funds into your account before an order for a,

services will be provided by us via the telephone.

Foreign Exchange or CFD contract will be accepted

by the 1TradeMarket platforms. Also, please note that the

This means that you are able to view live prices and

increased margin requirement may result in a

place live orders during these hours. Outside

margin call or possible liquidation.

these hours, you may still access the Trading

Platform and view your account, market

1TradeMarket currently offers one trading platform:

information, research and our other services.

Metatrader. The trading platform will calculate in

However, there will not be any live prices quoted

real time both the margin requirement and the

and thus, you will not be able to enter into

remaining free margin in your account. For

transactions. Any changes to operating hours will

Metatrader 4 you can see the margin requirements

be displayed on the website.

and remaining free margin in the “Trade” section of

the “platform” under the columns “Margin” (Used

What is an OTC Contract?

Margin), and “Free Margin” (Usable Margin).

Unlike financial products traded on an exchange,

Margin requirements can fluctuate from intraday, to

Margin FX contracts, Binaries and CFDs are Over-

overnight, to over the weekend.

the-Counter

(OTC) contracts which are not

standardized but are individually tailored to the

MARGIN FX CONTRACTS

particular requirements of the parties involved in

the contract—in this case, you and 1TradeMarket — but

What is a Margin FX Contract (“Margin FX

subject to minimum contract values.

Contract”)?

The terms involved in the negotiation of the

contract (or transaction) are:

A Margin FX Contract is a product offered by

1TradeMarket based on the exchange of one currency for

another. An exchange rate is the price of one

the underlying assets to be traded;

the amount of such assets;

currency in terms of another currency. For

the maturity date of the contract; and,

example; if the exchange rate for the Australian

the price at which the asset is to be traded.

Dollar against the Japanese Yen is AUD 1/JPY

83, this means that one Australian Dollar is

equal to, and can be exchanged for, 83 Japanese

Margin Obligations to 1TradeMarket

Yen.

FX contracts, and CFDs offered by 1TradeMarket will be

A Margin FX Contract does not result in the

10 | Product Disclosure Statement | 1TradeMarket

physical delivery of the currency. The foreign

where 1TradeMarket is the market maker will be entered

exchange products offered by 1TradeMarket are closed

into on a “matched book” basis or “back to back”

out by either you or us in certain circumstances,

basis.

(See below Important Features of Margin

FX Contracts) by taking an offsetting position.

How are orders executed and confirmed?

The profit or loss that results from the position

being closed out will be credited to or debited

Prior to entering into a transaction, you must open

from your account. If a transaction is held until

an account with us and deposit a minimum of $100.

the nominated maturity date, it will be cash

adjusted or cash settled according to the

When you propose to enter into a transaction, you

closing price of the applicable currency, as

will access the MetaTrader 4 Platform (“Trading

quoted by us.

Platform”) and determine which Margin FX

Contract you wish to trade and consider the prices

How do the Margin FX Contracts work?

being quoted by us. Should you decide to accept

our price you will follow the steps on the Trading

A Margin FX Contract is a rolling spot foreign

Platform. You must have sufficient money in your

exchange contract between you and 1TradeMarket in

account to meet the relevant initial margin for the

relation to an agreed currency pair. When you

proposed transaction.

propose to enter into any Margin FX Contract you

will be asked to nominate an amount and the two

What Margin is Required?

currencies to be exchanged. In every Margin FX

Contract there are two currencies as follows:

Each Margin FX Contract product requires you to

pay an initial margin. In addition, you may also be

1 fixed unit of a currency = X variable units of

required to pay (or be entitled to receive from

another currency.

1TradeMarket) Variation Margin, which is the unrealised

loss or profit on your open Margin FX Contract

The fixed currency is called the “base” currency

position.

and the variable currency is called the “terms”

What is the Initial Margin?

currency. Together, these are known as the

currency pair. The currencies involved in any

The Initial Margin is the up-front deposit you are

Margin FX Contract must be currencies which are

required to provide to 1TradeMarket when you enter into

offered by 1TradeMarket. As at the date of this PDS, 1TradeMarket

a transaction with us and which must be

offers forty-nine different currency pairs. To find

maintained throughout the term of the relevant

out more about the different currency pairs 1TradeMarket

transaction. The amount of the Initial Margin

offers,

please

view our website

applicable to each transaction is determined by

www.1trademkt.com.

1TradeMarket in its sole discretion and current levels for

each FX product are available

There is always a long (bought) and a short

www.1trademkt.com. It is typically 2% to 5 % of the

(sold) side to a trade, which means that you are

transaction value but may be as high as 100%

speculating on the prospect of one of the

depending on the volatility of the relevant

currencies increasing in value and one of them

underlying market and the liquidity of the

decreasing in value.

underlying asset. 1TradeMarket may vary the Initial Margin

rate at any time in its sole discretion.

The Margin FX Contracts offered by 1TradeMarket do not

result in the physical delivery of the currency. The

Adjustment of Differences/Variation

Margin FX Contracts are closed out by either you or

Margin

us by taking an offsetting position or are cash

adjusted or cash settled at the maturity date.

In addition to your Initial Margin, you may have

to deposit an additional margin, called Variation

What exchange rate will apply?

Margin. Open positions are accounted for in real

time on a mark-to-market basis to account for any

1TradeMarket prices will be the same price at which it is

market movements and to determine the current

offered by its counterparty, so all transactions

value of the Margin FX Contract on which the

11 | Product Disclosure Statement | 1TradeMarket

underlying currency is normally quoted.

provide notification and this service is provided to

you on a best endeavors basis. 1TradeMarket reserves the

Based on this determination, your account will

right to change accounting practices at any time

either be debited in relation to any unrealised

and it also reserves the right to offer different

losses or credited in relation to any unrealised

accounting practices.

profits.

It is your responsibility to actively monitor and

If you hold a long (or bought) position and the

manage your open positions and your obligations,

current value increases, 1TradeMarket will credit an amount

including ensuring that you meet your margin

equal to the increase in value. If the current value

requirement and that your Free Margin exceeds “0”.

decreases, 1TradeMarket will debit you an amount equal to

It is also your responsibility to ensure you are

the decrease in value.

aware of any changes in the margin requirements

or when the Free Margin is approaching “0”. 1TradeMarket

If you hold a short (or sold) position and the

is under no obligation to contact you in the event

current value increases, you will be debited an

of any change to the margin requirement.

amount equal to the increase in value to 1TradeMarket.

If the current value decreases 1TradeMarket will credit

1TradeMarket will attempt to notify you via email, but 1TradeMarket

your account with an amount equal to the

is under no obligation to notify you when:

decrease in value.

1. Your account becomes insufficiently

These amounts owing by you to us in order to

margined, and/or

“top up” the Initial Margin are what is known as

2. Your account is close to liquidation.

the variation margin.

1TradeMarket can close your open positions and cancel all

Margin calls

orders with or without giving you notice. You must

ensure that you maintain an e-mail address at all

During the period your contract remains open with

times and keep us up to date and informed of your

1TradeMarket, you must maintain your Initial Margin

current email address. 1TradeMarket will not use any other

means of communication to tell you when your

Requirement. If your account is not properly

margined, 1TradeMarket may Liquidate All Open Positions

account reaches these risk levels unless otherwise

in the account without further notice, which may

agreed upon. You must monitor your account so

that you know whether or not your Account is in

mean you will suffer losses.

risk of being liquidated. All the information you

If you open a position with Initial Margin, and the

need in order to make these calculations is

position moves against you and your Free Margin

available on our trading platform.

falls to “0”, your account will be placed on Margin

Call and all positions will be triggered for

You may increase the amount of Free Margin

liquidation or closing out by 1TradeMarket at the next

available in your account by:

available price. If the account equity falls below

margin requirements, the MT4 system for instance

Closing out or reducing one or more of your open

will trigger an order to close some or all of the

position(s) in order to reduce your Used Margin

open positions. If the Free Margin column reaches

amount; and/or depositing additional funds into

your account. If you choose to deposit additional

zero, the positions with the largest losses will

typically be closed first in order to free up

funds into your account, these additional funds

additional margin. In normal circumstances 1TradeMarket

must be cleared funds before they will be

available. These steps may not be necessary if

will endeavor to notify you of margin call by email

when you are close to receiving a margin call. This

there is an increase in the value of your open

email serves as a notice that your account has

positions due to a further market fluctuation.

breached the minimum required level of funds and

any open positions are at risk of being closed out.

1TradeMarket does not represent or warrant or give any

You are responsible for monitoring your own

assurance that your open positions will be closed

account and ensuring adequate funds are

out at any particular level. Accordingly, your

maintained at all times. We have no obligation to

losses may be higher than what they would have

been had 1TradeMarket exercised its right to place a

12 | Product Disclosure Statement | 1TradeMarket

liquidation order. Furthermore, you will be liable

or wait for 1TradeMarket to automatically close out or force

for all l o s s e s incurred, despite 1TradeMarket having had

liquidate the trade. 1TradeMarket has a

“no negative

the right to close out your position at a time before

balance policy” which is intended to ensure that

you i n c u r r e d those additional losses. Any

your position is closed out before the value of a

such loss may result in you losing all moneys that

trade declines below the required Margin to hold

you have deposited in your account with 1TradeMarket,

the position. 1TradeMarket enables you to manage both

but you will not be liable for debit balances in

adverse and favorable movement by using Stop

your account in excess of the moneys that you

Loss Order and Stop Limit Orders as part of their

have deposited that is not directly resulting from

risk-management strategy.

trading activity.

Why Would I Use a Margin FX Contract?

While 1TradeMarket will endeavor to notify you when

your account is close to receiving a margin

Margin FX Contracts are generally used for one

call, it is nonetheless your responsibility to

of two purposes

- hedging or speculating.

ensure that your Free Margin does not fall

Margin FX Contracts can provide those who are

below the margin call liquidation trigger level

dependent on overseas trade (and are therefore

of “0”, and to ensure that you do not rely on

exposed to currency risk) with a tool for managing

1TradeMarket to close out your positions should they

the risks associated with changing prices for those

be nea r in g , or exceed, the Margin Call level.

currencies. This strategy is known as hedging.

You may do this by reviewing your account

Margin FX Contracts are also traded by

detail on the 1TradeMarket platform(s) with a view to

speculators, who trade in the anticipation of

monitoring your Free Margin, bearing in mind

profiting purely from changing relative values in

that any additional funds that you d e p o s i t

the currency pairs.

into your account will not contribute towards

your account equity balance until those funds

Generally, trading Margin FX Contracts allows

become c l e a re d funds. You may also contact

you to leverage your positions to take a much

our Support staff should you have any queries

greater exposure than if you had to pay the full

about your current margin

requirement

price of holding the physical currency. Trading

obligations.

in Margin FX Contracts does, however,

involve significant risk. Traders and investors

When a margin call is triggered o n an account

must understand the nature of the risks

then individual positions will be liquidated until the

inherent in such transactions prior to entering

remaining equity is sufficient to support existing

into these transactions.

position(s). In deciding what positions will be

individually liquidated the largest losing position

How is the Foreign Exchange Rate

will be closed first during liquidation.

Determined?

How are profits and Losses on Margin FX

The calculation of the price to be paid (or the

Contracts Calculated?

payout to be received) for Margin FX Contract

offered by 1TradeMarket at the time the product is

The amount of any profit or loss made on the

purchased or sold will be the same as the price

Margin FX Contract will be calculated by

1TradeMarket is quoted from its hedging counterparty.

keeping the units of one of the currencies

Price quotes are based on, and with reference

constant (the Base Currency) and determining

to, the underlying foreign exchange market on

the difference in the number of units of other

which the Margin FX Contract is based.

currency (the Terms Currency). The profit or

loss is given in the units of the base currency.

1TradeMarket cannot predict future market prices of

underlying currencies and our quotations are not

What Happens if the Market is Adverse?

a forecast of what we believe an underlying

currency’s value will be at a future date. The

Where Clients experience adverse market

decision to transact at a particular rate will always

movements against their open positions, they can

be your decision.

close out the open position, “ top up” the account,

13 | Product Disclosure Statement | 1TradeMarket

Significant Risks of Margin FX Contracts

markets. The volatility in the market may create

conditions where orders are difficult to execute,

Explained

since the price might be many pips away due to the

extreme market movement or Gapping. Execution

You should be aware that trading in the foreign

is subject to available liquidity at any and all price

exchange products offered by 1TradeMarket involves risks.

levels. Although you may be looking to execute at

It is important that you carefully consider whether

a certain price, the market may have moved

trading our products is appropriate for you in light

significantly or liquidity exhausted, in which

of your investment objectives, financial situation

instance your order would be filled at the next best

and needs.

price or the fair market value.

Substantial or Total Losses - Despite trying to

Execution Risk - Delays in Execution - A delay in

close out open positions, your loss on a

execution may occur for various reasons, such as

transaction could be very substantial, or even

technical issues with your internet connection to

total.

If the price or value of one of the

the 1TradeMarket servers, which may result in hanging

underlying currencies moves against your Margin

orders. The Trading Platforms on your computer

FX Contract position, you will be required to “top

may not be maintaining a constant connection with

up” your account with sufficient funds to maintain

the 1TradeMarket servers due to a lack of signal strength

your position. The amount required may be

from a wireless or dialup connection. A

substantial. If you fail to maintain the required

disturbance in the connection path can sometimes

account balance, your position may be closed out

interrupt the signal, and disable the Trading

by 1TradeMarket.

Platforms, causing delays in transmission of data

between your Trading Platform and 1TradeMarket servers.

Market Risk - There is a risk that the value of your

Margin FX Contract position will change as a result

Automated Trading Strategies

- The use of

of a movement in the underlying currency price.

Automated Trading Strategies (Expert Advisors)

You will suffer a loss if the price of the underlying

on the 1TradeMarket Trading Platforms is high risk. 1TradeMarket has

currency moves unfavorably. Prices of currencies

no control over the logic or code used by these

(from which the value of the Margin FX Contract

systems to determine orders to trade. Trading with

is derived) depend on a number of factors

any system that you leave to run and trade your

including for example, interest rates, supply and

account without being present may cause

demand and even the actions of governments.

significant financial loss and 1TradeMarket does not accept

This will directly affect the Margin FX Contract

or bear any liability whatsoever in relation to the

value. Given the potential levels of volatility in the

operation of the Automated Strategies on the 1TradeMarket

markets, it is recommended that you closely

Trading Platforms.

monitor your open positions at all times.

Stop orders and limit orders are not guaranteed

Unregulated Market - The Margin FX Contract

- The placing of a stop order can potentially limit

products offered by 1TradeMarket are OTC derivatives and

your loss; however, we do not guarantee that a

are not covered by the protections for exchange-

stop order will do so. Similarly, a limit order can

traded derivatives arising from any domestic or

maximize your profit but there is also no guarantee

international exchange rules (such as guarantee or

of this. Foreign exchange markets can be volatile

compensation

funds).

Contingent-liability

and unforeseeable events can occur which mean

transactions which are not traded on or under the

that it is possible that stop orders and limit orders

rules of a regulated or designated exchange may

may not be accepted or may be accepted at a price

expose you to substantially greater risks.

different to that specified by you. You should

anticipate being stopped out at or limited at a

Execution Risk - Slippage - 1TradeMarket aims to provide

price worse than the price you set. You may suffer

you with the best pricing available and to get all

losses as a result.

orders filled at the requested rate. However, there

are times when, due to an increase in volatility or

Credit or Counterparty Risk: - Given that you are

volume, orders may be subject to what is referred

dealing with 1TradeMarket as counterparty to every

to as

“slippage”. This most commonly occurs

transaction, you will have an exposure to us in

during fundamental news events or gapping in the

relation to each transaction. This is common to all

14 | Product Disclosure Statement | 1TradeMarket

OTC financial market products. You are reliant on

account surplus will tend to cause a currency to

1TradeMarket ability to meet its counterparty obligations to

depreciate, while a shrinking current account

you to settle the relevant contract. 1TradeMarket may

deficit will tend to cause the currency to

choose to limit this exposure by entering into

appreciate. However, in practice exchange rates

opposite transactions in the wholesale market in

do not always move to reflect current account

relation to its exposures with clients.

figures. While over time the relationship holds

true there may be sustained periods during which

Leverage - The Margin FX Contracts offered by

exchange rates move in the opposite direction.

1TradeMarket carry a substantial leverage risk. The high

degree of leverage that is obtainable in trading the

Inflation Rates - These impact upon the ability

foreign exchange products offered by 1TradeMarket

to purchase goods and services. Over a period

because of the small margin requirements can

of time, the inflationary impact on prices tends

lead to large losses as well as large gains. The

to result in price increases for goods and

impact of leverage is that even a slight fluctuation

services to offset the impact of inflation. This

in the market could mean substantial gains when

means that exchange rates should change so as to

these fluctuations are in your favor, but that could

reflect the relative purchasing power of two

also mean considerable losses if the fluctuations

currencies.

are to your detriment. Trading in the foreign

exchange products offered by 1TradeMarket may result in

Interest Rates - How interest rates affect the

the total loss of the amount you deposited with

forward rates has already been described.

1TradeMarket. Leverage could lead to large losses greater

They can also affect the flow of currencies

than the clients initial deposit and margin

between countries. Over a period of time it is

payment. Given the possibility of losing an entire

possible for currencies with a trend towards

investment speculation in Margin FX Contracts

high local interest rates to attract capital inflow

should be conducted only with risk capital that,

and vice versa.

if lost, will not significantly affect your financial

stability.

CONTRACTS FOR DIFFERENCE

Margin risk -You could sustain a loss, greater than

(“CFDs”)

and not limited to, an initial Margin that you have

paid to us to establish or maintain a trading

What is a Contract for Difference?

position. If the Reference Security’s value moves

against

your trading position, you are

A Contract for Difference (“CFD”) is a contract

responsible for monitoring and meeting the

whereby you make a profit or take a loss from

Margin cover requirements. If you fail to provide

market price changes in the underlying asset.

those additional funds within the required time,

However, you do not own or have any interest in the

your entire position may be liquidated at a loss and

underlying asset. A CFD is a derivative asset in that

you will be liable for any shortfall in your Account

the value of the CFD is derived from the value of the

resulting from that failure. If a position is Closed

underlying asset. A CFD allows you to receive many

Out, all of it may be closed not just a proportion

of the benefits of owning the underlying asset

of it. There is no limit on the amount of Margin

without actually owning it.

which may be called in order to meet a revised

valuation of your transaction.

1TradeMarket offers CFD products on commodities such as

gold, silver and crude oil. 1TradeMarket may offer

Current account balance - This is an important

additional CFD products based on other

determinant of exchange rates. Currencies with

commodities or market indices in the future. If

increasing current account surpluses or

1TradeMarket offers such additional products, we may

decreasing current account deficits tend to

amend this PDS and FSG or we may notify

strengthen against currencies with decreasing

customers electronically, on our website, or

current account surpluses or increasing current

otherwise, as required by regulatory bodies.

account deficits. It is the change in the current

account deficit or surplus which is relevant.

A CFD is an agreement between 1TradeMarket and you to

trade the difference in changes in the price or value

Current account surplus - A diminishing current

15 | Product Disclosure Statement | 1TradeMarket

of an underlying asset. CFDs have no fixed size

underlying market and the liquidity of the

or expiration dates. When you enter into a CFD,

underlying asset. 1TradeMarket may vary the Initial Margin

you will be paid the amount of money (profit) or

rate at any time in its sole discretion.

be required to pay the amount of money (loss)

arising from the change in value of the underlying

Adjustment of Differences/Variation

asset.

Margin

Trading a CFD does not mean that you are the

In addition to your Initial Margin, you may have

owner of the underlying asset. Understand that

to pay an additional margin, called Variation

you have none of the rights to the underlying

Margin. Open positions are accounted for in real

asset that an owner would have.

time on a mark-to-market basis to account for any

market movements and to determine the current

CFDs can be traded only during the operating

value of the CFD on which the underlying asset is

hours for the market upon which that underlying

normally quoted. Based on this determination,

asset is traded.

your account will either be debited in relation to

any unrealised losses or credited in relation to

How Are Orders Executed and Confirmed?

any unrealised profits.

Prior to entering into a transaction, you must open

If you hold a long (or bought) position and the

an account with us and deposit a minimum of

current value increases, 1TradeMarket will credit an amount

$100.

equal to the increase in value. If the current value

decreases, 1TradeMarket will debit you an amount equal

When you propose to enter into a transaction, you

to the decrease in value.

will access the MetaTrader 4 Platform (“Trading

Platforms”) and determine which CFD product you

If you hold a short (or sold) position and the current

wish to trade and consider the prices being quoted

value increases, you will be debited an amount

by us. Should you decide to accept our price you

equal to the increase in value to 1TradeMarket. If the current

will follow the steps on the Trading Platform. You

value decreases 1TradeMarket will credit your account with

must have sufficient money in your account to meet

an amount equal to the decrease in value.

the relevant Initial Margin for the proposed

transaction.

These amounts owing by you to us in order to “top

up” the Initial Margin are what is known as the

What Margin is Required?

Variation Margin.

Each CFD product requires you to pay an Initial

How are profits and losses on CFDs

Margin. In addition, you may also be required to

calculated?

pay (or be entitled to receive from 1TradeMarket) Variation

Margin, which is the unrealised loss or profit on

The amount of any profit or loss made on the

your open CFD position.

CFD will be calculated by reference to the

difference between the price or value of the CFD’s

What is the Initial Margin?

underlying asset when the CFD is opened and the

price or value of the CFD’s underlying asset when

The Initial Margin is the up-front deposit you are

the CFD is closed out, multiplied by the number of

required to provide to 1TradeMarket when you enter into

the CFDs held. The calculation of profit or loss is

a transaction with us and which must be

also affected by funding charges and any other

maintained throughout the term of the relevant

charges.

transaction. The amount of the Initial Margin

applicable to each transaction is determined by

What Happens if the Market is Adverse?

1TradeMarket in its sole discretion and current levels for

each CFD product are available on

Where Clients experience adverse market

www.1trademkt.com It is typically 2% to 5% of the

movements against their open positions, they can

transaction value but may be as high as 100%

close out the open position, “ top up” the account,

depending on the volatility of the relevant

or wait for 1TradeMarket to automatically close out or force

16 | Product Disclosure Statement | 1TradeMarket

liquidate the trade. 1TradeMarket has a

“no negative

balance policy” which is intended to ensure that

Significant Risks of CFD Products

your position is closed out before the value of a

Explained

trade declines below the required Margin to hold

the position. 1TradeMarket enables you to manage both

You should be aware that trading in the CFD

adverse and favorable movement by using Stop

products offered by 1TradeMarket involves risks. It is

Loss Order and Stop Limit Orders as part of their

important that you carefully consider whether

risk-management strategy.

trading our products is appropriate for you in light

of your investment objectives, financial situation

Stop Limit Order

and needs.

A stop limit order is a particular kind of stop loss

order. A stop limit order means that the Order will

Substantial of Total Losses–Despite trying to close

not get filled at all below the limit of the Order.

out open positions, your loss on a transaction could

This means that if the new or opening price gaps

be very substantial, or even total. If the price or

beyond your stop limit order, your Order will not

value of the underlying asset moves against your

be filled at all.

CFD position, you will be required to “top up” your

account with sufficient funds to maintain your

Stop Loss Order

position. The amount required may be substantial.

You would generally choose to place a stop-loss

you fail to maintain the required account

order to provide some risk protection. For

balance, your position may be closed out by 1TradeMarket.

example, i f your open position moves towards

making a loss based on a level chosen by you,

Market Risk - There is a risk that the value of your

the stop loss order would be triggered in order

CFD position will change as a result of a movement

to try to close your open position or to open a

in the underlying market price. You will suffer a loss

position, depending on the CFD transaction y o u

if the price of the underlying asset moves

have.

unfavorably. Prices of assets (from which the value

of the CFD is derived) depend on a number of

These orders work in very similar ways as the limit

factors including for example, interest rates, supply

order, except in the opposite direction. These

and demand, and even the actions of governments.

orders are seldom used to enter a trade, and

This will directly affect the CFD value. Given the

some brokers do not have this feature, but 1TradeMarket

potential levels of volatility in the markets, it is

does. Most stop orders are used to exit an existing

recommended that you closely monitor your open

trade.

positions at all times.

Why Would I Invest Using CFDs?

Unregulated Market - The CFD products offered

by 1TradeMarket are OTC derivatives and are not covered

CFDs are generally used for one of two purposes -

by the protections for exchange-traded derivatives

hedging or speculating. CFDs can provide those

arising from any domestic or international

who deal in the underlying asset with a tool for

exchange rules

(such as guarantee or

managing the risks associated with changing

compensation funds). Contingent liability

prices for those investments. This strategy is

transactions which are not traded on or under the

known as hedging. CFDs are also traded by

rules of a regulated or designated exchange may

speculators, who trade in the anticipation of

expose you to substantially greater risks.

profiting purely from changing prices in the

underlying asset.

Credit or Counterparty Risk - Given that you are

Generally, trading CFDs allows you to leverage

dealing with 1TradeMarket as counterparty to every

your positions to take a much greater exposure

transaction, you will have an exposure to us in

than if you were to purchase the underlying asset.

relation to each transaction. This is common to all

Trading in CFDs does, however, involve

OTC financial market products. You are reliant on

significant risk. Traders and investors must

1TradeMarket ability to meet its counterparty obligations

understand the nature of the risks inherent in

to you to settle the relevant contract. 1TradeMarket may

such transactions prior to entering into these

choose to limit this exposure by entering into

transactions.

opposite transactions as principal in the wholesale

17 | Product Disclosure Statement | 1TradeMarket

market in relation to its exposures with clients. In

isbased.

addition, 1TradeMarket must comply with the financial

requirements imposed under its AFS License.

1TradeMarket cannot predict future market prices of

underlying assets and our quotations are not a

Leverage - The CFD products offered by 1TradeMarket

forecast of what we believe an underlying asset’s

carry a substantial leverage risk. The high degree

value will be at a future date. The decision to

of leverage that is obtainable in trading the CFD

transact at a particular rate will always be your

products offered by 1TradeMarket because of the small

decision.

Margin requirements can lead to large losses as

well as large gains. The impact of leverage is

GENERAL RISK OF PRODUCTS

that even a slight fluctuation in the market could

mean substantial gains when these fluctuations

1TradeMarket strongly recommends that, if you are not

are in your favor, but that could also mean

fully familiar with

Derivatives, you obtain

considerable losses if the fluctuations are to your

independent legal, financial and taxation advice

detriment. Trading in the CFD products offered by

before proceeding with a transaction. Further,

1TradeMarket may result in the total loss of the amount

1TradeMarket recommends that you should consider the

you deposited with 1TradeMarket. Leverage could lead to

following:

large losses greater than the clients’ initial deposit

and margin payment. Given the possibility of

•

It is your responsibility to understand the nature

losing an entire investment speculation in CFDs

and risks associated with each transaction.

should be conducted only with risk capital that, if

•

In entering into any transaction, neither 1TradeMarket

lost, will not significantly affect your financial

nor any of its representatives will advise you, or

stability.

is to be taken as advising you, as to any strategy,

risk profile or financial result.

Margin risk -You could sustain a loss, greater than

•

Derivatives trading is highly speculative and

and not limited to, an initial Margin that you have

volatile. There is no guarantee or assurance

paid to us to establish or maintain a trading

that you will make profits, or not make losses,

position. If the Reference Security’s value moves

or that unrealized profits or losses will remain

against

your trading position, you are

unchanged.

responsible for monitoring and meeting the

•

Past performance of markets and currencies in

Margin cover requirements. If you fail to provide

particular, is never an assurance of future

those additional funds within the required time,

performance.

your entire position may be liquidated at a loss

•

The value of your account may fluctuate

and you will be liable for any shortfall in your

according to exchange rates and interest rates,

Account resulting from that failure.

as well as other market conditions which are

outside of your control and which cannot be

If a position is Closed Out, all of it may be closed

forecast.

not just a proportion of it.

•

Information about prices or rates may come

from several sources and may not be current at

There is no limit on the amount of Margin which

the time given to you. 1TradeMarket does not take

may be called in order to meet a revised valuation

responsibility for information about rates or

of your transaction.

other financial market data or statements and

1TradeMarket relies on your acknowledgment that you

How is the CFD Value Calculated?

do not rely on any such information given to

you or discussed with you. 1TradeMarket only

The calculation of the price to be paid (or the

undertakes to perform the transaction agreed

payout to be received) for CFD products offered

with you at the price or rate for that

by 1TradeMarket at the time the product is purchased or

transaction, and not at any other price or rate

sold will be the same as the price 1TradeMarket.

available in the market.

•

The CFDs and Margin FX are valued by 1TradeMarket.

Trading is quoted from its hedging counterparty.

Typically, this is by direct reference to the

Price quotes are based on, and with reference to

market value (or, if relevant, index level) of the

the underlying contract on which the CFD product

relevant Reference Security on the relevant

18 | Product Disclosure Statement | 1TradeMarket

Exchange. If the Exchange f a i l s to provide

delays in telecommunications systems, connection

that information (for example, due to a failure

or system failures, network downtime, interrupted

in the Exchange’s trading system or data

service, data supply errors, and security breaches.

information service) or trading in the

A disruption to the MetaTrader

4 Trading

Reference Security is halted or suspend, 1TradeMarket

Platform(s) could mean you are unable to trade in a

may e xe rci se its discretion to determine a

product offered by 1TradeMarket and that you may suffer a

value. Due to the nature of products, in

financial loss or an opportunity loss as a result. The

common with industry practice for such

occurrence of disruptive events is outside the

financial

products, 1TradeMarket discretion is

control of 1TradeMarket and, accordingly, you will have no

unfettered and so has no condition or

recourse against 1TradeMarket relating to losses sustained

qualification. You therefore have the risk of

as a result of software disruptions.

relying on whatever value is determined by

1TradeMarket in the circumstances permitted by the

Use and Access to the Website - You are

Account Terms & Conditions.

responsible for providing and maintaining the

means by which you access the MetaTrader 4

Our powers on default, indemnities and

Trading Platform, which may include without

limitations on liability - If you fail to pay, or

limitation a personal computer, modem and

provide collateral for, amounts payable to 1TradeMarket

telephone or other access line. While the internet

or fail to perform any obligation under your

and the World Wide Web are generally reliable,

transactions, 1TradeMarket has extensive powers under

technical problems or other conditions may delay

the Account Terms & Conditions with you to take

or prevent access. If you are unable to access the

steps to protect our position including, for

Internet and thus, the Trading Platform, it will mean

example, the power to Close Out positions and to

you may be unable to trade in the products offered

charge default interest. Under the Account Terms

by 1TradeMarket and you may suffer a loss as a result.

and Conditions, you also indemnify 1TradeMarket for certain

1TradeMarket cannot be held responsible for losses

losses and liabilities, including, for example, in

resulting from such service disruptions.

default scenarios.

Furthermore, in unforeseen and extreme market

Further, 1TradeMarket liability to you is expressly limited (to

situations, 1TradeMarket reserves the right to suspend the

the extent permitted by law) to performing its

operation of the Trading Platform. In such an

obligations. You should read the Account Terms

event, 1TradeMarket may, at its sole discretion

(with or

and Conditions carefully to understand these

without notice), close out your open positions at

matters.

prices or values it considers fair and reasonable at

such a time and is not responsible for any loss that

Volatility

- Under certain conditions, it may

arises from such actions.

become difficult or impossible for you to close out

a position. This can happen when there is a rapid

When Markets Are Closed - Due to the dynamic

change in the price or value of the underlying

nature of our products and the underlying

asset over a short period of time. This may result

assets, it is possible that the value of your open

in large losses, however your loss is generally

positions will change outside trading hours, while

limited to the net amount deposited with 1TradeMarket to

the trading function of our Trading Platform is

establish or maintain a contract, as 1TradeMarket maintains

closed, and various markets may be closed, for

a “no negative balance policy” (on OTC product

example during weekends. In this case, you will

offerings).

not be able to trade in a product offered by 1TradeMarket

(e.g. Open a new transaction or close out an

Electronic Trading Platforms - You should be

open transaction) until trading hours resume and

aware that there are a number of risks associated

the trading function o f the Trading Platform and

with using internet-based trading platforms. These

the relevant market re-opens. You may suffer a

risks are not exclusive to our MetaTrader 4 Trading

financial loss or opportunity loss as a result.

Platform

(“Trading Platform”) but also apply to

other providers of trading platforms. Such risks

Illiquid Markets - A liquid market is generally one

include, but are not limited to, risks related to the

in which there is sufficient trading activity to satisfy

use of software and/or telecommunications

both buyers and sellers. An illiquid market is

systems such as software errors and viruses, bugs,

generally one in which it is difficult to find bids and

19 | Product Disclosure Statement | 1TradeMarket

offers. Some commodity markets are extremely

the applicable terms and conditions as

illiquid, and hence 1TradeMarket reserves the right to

amended, supplemented or updated from time

postpone offering a price for a product until a more

to time. You must complete, sign and return an

liquid market develops.

Account Application Terms & Conditions, and

have your account approved by 1TradeMarket before you

No Cooling Off

can set up an account with 1TradeMarket to deal in

There are no cooling-off arrangements for

products issued by 1TradeMarket.

Derivatives. This means that when 1TradeMarket arranges for

the execution of a product, you do not have the

Application - Your request to 1TradeMarket to establish an

right to return the product, nor request a refund of

Account made using the Account Application

the money paid to acquire the product.

Terms & Conditions.

Prices - Under certain market conditions the prices

Base Currency - Your account is maintained in the

of contracts may not maintain their usual

currency you have nominated, that is, the base

relationship with the underlying asset. 1TradeMarket will

currency. In relation to quoting of currency pairs,

select closing prices to be used in determining

the base currency is the first currency of the pair.

Margin requirements and in marking to market the

When quoting AUDUSD, then AUD is the base

positions in your account. Prices used may vary

currency. When quoting USDJPY, then USD is the

from those available to other participants in the

base currency.

market, and consequently 1TradeMarket may exercise

considerable discretion in setting Margin

Business Day - A day (other than a Saturday or

requirements.

Sunday or public holiday) on which trading banks

in important markets are open for business.

CYBER SECURITY RISK &

Call Option - An Option Contract which gives the

DISCLAIMER OF LIABILITY

buyer the right, but not the obligation, to buy the

Underlying Instrument from the seller at or before, a

1TradeMarket cannot guarantee against third party

future point in time at a pre-defined price.

interference to our website and trading facility or

to the technology provided by third parties upon

Client or Customer or You - (which terms are used

which we rely. This means that you may be

interchangeably) means the party who accepts

exposed to issues arising from any third-party

the terms of and agrees to the Client Agreement

interference which may occur. Examples include:

and PDS.

un-authorized access to our or your IT systems or

devices, data breaches, business interruption,

Close Out, Closed Out - in relation to a CFD

errors in pricing feeds or inability to access your

transaction mean discharging or satisfying the

account or close positions. In the worst-case

obligations of the parties under the CFD

scenario, financial loss may occur. We take this risk

transaction and this includes:

seriously and manage it by ongoing monitoring of

by delivering the amount or value of the Reference

our IT systems, protection and back up measures

Security (including a dollar multiple of an index)

(including virus protection software). You can limit

required in accordance with the Account Terms,

your risk by ensuring you have up to date software

as a result of the matching up of the CFD

for the devices that you use to access our trading

Transaction with a CFD Transaction of the same

facilities and ensuring that you use strong

kind under which you have assumed an offsetting

passwords which are kept confidential and secure.

opposite position; and making adjustments for

fees and charges.

GLOSSARY

Close Out, in relation to and options: To close out

Account - Account of the client dealing in the

an existing open position by entering into an equal

products issued by 1TradeMarket, which is established in

and opposite offsetting position. To close out a

accordance with the Terms & Conditions.

bought or long position requires selling and closing

out a sold or short position requires buying.

Account Application Terms & Conditions - The

agreement provided to you by 1TradeMarket, detailing

Confirmation - means any confirmation of a CFD or

20 | Product Disclosure Statement | 1TradeMarket

FX Margin Contract transaction issued by us or on

a specified price. A sell limit order allows traders

our behalf to you and includes an electronically

and investors to specify the price that they are

transmitted confirmation.

willing to sell a contract for, such as a currency pair

or a CFD. By using a sell limit order, the investor

Contract for Difference (“CFD”) - means an

is guaranteed to receive that price or better,

agreement between you and 1TradeMarket to trade the

meaning that he or she will sell the contract at the

difference arising from movements in the price or

specified price or higher.

value of an underlying asset.

While the price is guaranteed, the filling of the

Exercise Price - The price at which the buyer of an

order is not. In other words, if the specified price

Option Contract may buy or sell the Underlying

is never met, the order will not be filled, and the

Instrument, as defined in the terms of the Option

investor may miss out on the trading

Contract.

opportunity.

Expiry Date - In relation to an Option Contract, the

Margin - The Initial Margin or Variation Margin or

date on which the Option Contract expires or

both.

matures. This is also referred to as the Maturity

Date.

Margin Call - A demand for additional funds

made to the client by 1TradeMarket to meet any

FSG - 1TradeMarket

“Financial Services Guide” as

additional margin requirement.

amended, supplemented or updated from time

to time.

Margin FX- Margin foreign exchange.

FX - Foreign Exchange

Margin Foreign Exchange Contract (“Margin

FX Contract”) - means a rolling spot foreign

Initial Margin - An amount required to be

exchange contract between a Client and 1TradeMarket in

deposited by the client with 1TradeMarket to open a Margin

relation to an agreed currency pair.

FX position or establish a position in a Contract.

Over the Counter (“OTC”) contract- means a

LIBID - LIBID stands for London Interbank Bid Rate.

contract (or product) that is traded off-market as

The rate charged by one bank to another for a

opposed to on an exchange such as a stock

deposit in the wholesale money markets in London.

exchange or exchange.

LIBOR - LIBOR stands for London Interbank

PDS- Product Disclosure Statement.

Offer Rate. It's the rate of interest at which banks

offer to lend money to one another in the

Put Option- An Option Contract where the buyer

wholesale money markets in London.

has the right, but not the obligation, to sell the

Underlying Instrument at or before a future point in

Limit to Buy - An order to purchase a contract

time at a predefined price.

at or below a specified price. A buy limit order

allows traders and investors to specify the price

Reference Security- means the reference

that they are willing to pay for a contract, such as

security, other financial product, currency,

a currency pair or a CFD. By using a buy limit

commodity, index or other item

(or any

order, the investor is guaranteed to pay that

combination of one or more of those) which

price or better, meaning that he or she will pay

is used as the basis for the calculations for your

the specified price or less for the purchase of the

CFD or Margin FX Contract.

contract.

Stop Limit Order- is a particular kind of Stop

While the price is guaranteed, the filling of the

Loss order. A stop limit order means that the

order is not. In other words, if the specified price

order will not get filled at all below the limit of

is never met, the order will not be filled, and the

the order.

investor may miss out on the trading opportunity.

Stop Loss Order- is an order that you place which

Limit to Sell - An order to sell a contract at or above

allows you to set a price at which you would like

21 | Product Disclosure Statement | 1TradeMarket