Last updated: TBC — set the date this document takes effect.
1. What you are trading
A contract for difference is an agreement between you and us to exchange the difference between the opening and closing price of a position. You do not own the underlying instrument, and you acquire no rights in it.
Trading CFDs is speculative and carries a high degree of risk. These products are not suitable for everyone. Do not trade with money you cannot afford to lose, and do not treat trading income as a substitute for a salary.
2. Leverage
Leverage lets you control a position far larger than your deposit. It magnifies gains and losses equally. Velton Markets offers leverage up to the limits published in the trading terms — up to 1:500 on Standard, up to 1:2000 on Pro, and up to unlimited on Raw Spread and Swap Free, subject to the conditions set out there.
A worked example. On a $100 balance at 1:500, you can open a position with a notional value of $50,000. A move of 0.2% against you is a $100 loss — your entire balance. At higher leverage the move required is smaller still. Higher leverage does not increase your expected return; it shortens the distance between you and a stop-out.
Maximum leverage is adjusted automatically by reference to account equity and may be reduced around news events, market open and close, and public holidays, without prior notice to you.
3. Margin call and stop-out
You must keep enough margin to support your open positions. If equity falls to the stop-out level published in the trading terms, we may close your positions automatically, at market prices, without notifying you first.
You should not rely on receiving a margin call. We are not obliged to warn you before closing positions, and in a fast market there may be no opportunity to add funds.
4. Gaps, volatility and stop orders
Prices can gap — jump from one level to another with no trading in between — around news releases, at market open, and in thin liquidity. Under such conditions it may be impossible to execute an order at the displayed price.
A stop-loss order becomes a market order once triggered and is filled at the best price then available. It does not guarantee your loss is limited to the stop level and may fill materially worse.
5. Total loss
You can lose the entire balance of your account. Because margin covers only a fraction of the notional value of a position, small adverse moves produce large losses relative to your deposit.
[NEGATIVE BALANCE — state clearly whether you offer negative balance protection. If you do, say so here; it is a genuine selling point. If you do not, this section must warn that losses can exceed the deposited amount. Leaving it ambiguous is the worst option.]
6. We are your counterparty
Trades are not executed on a recognised exchange. They are executed on our platform, with us as counterparty, on terms we set. This exposes you to risks that do not arise on an exchange, including our own solvency. Prices we quote include a spread relative to prices we may obtain from our liquidity sources.
7. Technology
Online trading depends on hardware, software, connectivity and third-party infrastructure that can fail. An interruption may prevent you opening, modifying or closing a position at the moment you want to. Deposits and withdrawals are processed by third-party payment partners whose delays are outside our control.
8. Currency risk
Where your account currency differs from the currency of the instrument you trade, or from the currency you funded in, exchange-rate movements affect your result independently of whether the trade itself was right. If you fund in naira or in crypto, the value of your deposit may move before you have opened a single position.
9. Costs
Spread and commission apply to every trade and are a cost you must overcome before you are profitable. On small accounts, costs are large relative to the balance. Obtain the full cost figures for your account type from the trading terms before you begin, and if a cost is expressed as a spread, work out what it means in money for your intended trade size.
10. Tax
Your trading may be subject to tax or duty, and your position may change with legislation or your own circumstances. You are responsible for any tax arising. We do not give tax advice and do not warrant that none is payable.
11. No advice
Velton Markets provides execution only. Nothing on our website, in our educational material, or said by our staff, partners or introducing brokers is investment advice or a personal recommendation. If you are unsure whether these products suit you, take advice from an independent qualified adviser before trading.
[LOSS RATE — if your licence requires a retail client loss-rate disclosure, for example “X% of retail investor accounts lose money trading CFDs with this provider”, it must appear here and on the homepage once you have the figure.]
12. Client declaration
By entering into an agreement with us and each time you place an order, you acknowledge that you run a high risk of loss and that you are willing to accept that risk.
For many people, trading CFDs is not appropriate. Do not trade these products unless you understand how they work and accept that you may lose all of your money.
Contact
Questions about this document? Email help@veltonmarkets.com or see our contact page.