introduction - nic housenichouse.net/downloads/proposal.pdf · the services provided by nefdm were...

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Introduction: The services provided by NEFDM were designed having you in mind. The services were also developed for both the beginner and the professional trader. NEFDM operates in a multilingual environment, and is maintained by a world-class support team that can assist you in multiple languages as well. Whether you’re an individual just starting out or a large company looking for a unique way to trade, the stability and flexibility of NEFDM will meet your needs. Here at NEFDM, we believe that integrity matters. We also believe that a crucial aspect of successful trading is having all the information and tools available to you when necessary. Straightforward, user-friendly presentation of resources is another important factor in your successful online activities. In terms of our platform, seamless operation is paramount to trading success. We therefore work hard to make your experience with NEFDM as smooth as possible. Our Platform Om technology platform is practical, efficient and flexible; all the tools and information you’ll ever need are available to you, at a single location! If you’re a trader on the go, NEFDM also offers a web based platform which can operate from various web browsers as well as the Apple Operating System, with Installation required. Both platforms possess the professional standards expected in today’s global marketplace. NEFDM professional services and benefits 1. 1:400 Leverage –Allows you to open positions with up to 400 times the amount you invest – this way your potential profits are not limited but you can never lose more than your investment. 2. Guaranteed Stop Loss – no slippage (you receive the exact price you set)

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Page 1: Introduction - NIC Housenichouse.net/downloads/proposal.pdf · The services provided by NEFDM were designed having you in mind. The services were also developed for both the beginner

Introduction:

The services provided by NEFDM were designed having you in mind. The services were also developed for both the beginner and the professional trader. NEFDM operates in a multilingual environment, and is maintained by a world-class support team that can assist you in multiple languages as well.

Whether you’re an individual just starting out or a large company looking for a unique way to trade, the stability and flexibility of NEFDM will meet your needs.

Here at NEFDM, we believe that integrity matters. We also believe that a crucial aspect of successful trading is having all the information and tools available to you when necessary. Straightforward, user-friendly presentation of resources is another important factor in your successful online activities. In terms of our platform, seamless operation is paramount to trading success. We therefore work hard to make your experience with NEFDM as smooth as possible.

Our Platform

Om technology platform is practical, efficient and flexible; all the tools and information you’ll ever need are available to you, at a single location! If you’re a trader on the go, NEFDM also offers a web based platform which can operate from various web browsers as well as the Apple Operating System, with Installation required. Both platforms possess the professional standards expected in today’s global marketplace.

NEFDM professional services and benefits

1. 1:400 Leverage –Allows you to open positions with up to 400 times the amount you invest – this way your potential profits are not limited but you can never lose more than your investment.

2. Guaranteed Stop Loss – no slippage (you receive the exact price you set)

Page 2: Introduction - NIC Housenichouse.net/downloads/proposal.pdf · The services provided by NEFDM were designed having you in mind. The services were also developed for both the beginner

3. Fixed spreads (Spreads you see will remain fixed regardless of market fluctuations)

4. Tight spreads – 5 and after then onwards pips starting from small accounts and onward

5. Access to 24 hours dealing room via phone (limited to 50k deal size and above) on working days

6. Personal Client Manager – to accompany each client in his daily trading activities

7. Free 1 on 1 online training session

8. Adjustable dealing lots

9. Excellent customer support

10. Negative balance Protection (margin call)

11. Three trading platforms (an internet based platform, a downloadable platform as well as a mobile platform, all of which can be accessed 24/7)

12. Deposit option (through your personal account)

NEFDM- Registration Confirmation

Dear Sir/Madam Client,

Welcome to the lucrative world of TRADING. You are still entitled to get the INVESTOR PACK:

● PERSONAL training with a NEFDM coach

● A demo account to practice ● Trading PDF Guides, which will serve as a basis to begin

The free training we propose is intended for people who wish to understand the market and take advantage of its opportunities. We put at your disposal a clientele manager who will take care of you

Page 3: Introduction - NIC Housenichouse.net/downloads/proposal.pdf · The services provided by NEFDM were designed having you in mind. The services were also developed for both the beginner

and introduce you to this exciting market (understanding graphs,

minimize risk, take positions ...)

Start trading from NEFDM

and take advantage of our training to understand how to invest

You can request to withdraw your deposit and your profits at any

time

In addition, benefit from practicing on a demo account: ● Quotes and charts in real time

● Evaluate strategies safely ● 24h/5d

Do not hesitate to contact us, we will be glad to assist you and answer all the questions you may have.

Yours Sincerely, The NEFDM Team

Contact Us

LALIT SAH (CEO)

+977-9801137395

[email protected]

NEFDM- Registration

To initiate the process and have your account ready for your 1-on-1 training session, please login and fund your account with your

preferred investment amount.

Simply choose your secure payment method on the screen once you have logged into your account.

Page 4: Introduction - NIC Housenichouse.net/downloads/proposal.pdf · The services provided by NEFDM were designed having you in mind. The services were also developed for both the beginner

During the 1-on-1 training session you will learn:

We would like to take this opportunity to thank you once again for

registering with us. We are proud of our customer service and strive to provide you with all the support you need.

Should you have any further questions feel free to contact us.

Yours Sincerely, The NEFDM Team

Contact Us

Lalit sah

Chief Executive Officer (CEO)

+977-9801137395

[email protected]

Banking Transaction Procedures

1. Trading Member should open the Current A/c with Nepal Investment Bank Ltd. (NIBL) or Bank of Kathmandu (BOK).

2. Trading Member should open the Member-Client A/c and Member Deposit A/c.

a. To open the Member-Client A/c and Member Deposit A/c Trading Member should take a copy of The Account Operation Agreement (AOA) conducted between Nepal Derivative Exchange Ltd. (NDEX) and Bank of Kathmandu (BOK) or Nepal Investment Bank Ltd (NIBL).

b. "ANNEXURE A" and "ANNEXURE B" of the "Account Opening Agreement" should enclose along the standard corporate account

The basics of the market including various trading terms

How to master our trading platform and manage your trades

About our advanced trading tools that can assist with your

market decisions

Page 5: Introduction - NIC Housenichouse.net/downloads/proposal.pdf · The services provided by NEFDM were designed having you in mind. The services were also developed for both the beginner

opening form provided by bank in the Letter Head of the Trading Member Company.

c. NDEX will provide a reference letter to bank to open the both M & C a/c and M D a/c.

3. After opening the Member-Client A/c and Member Deposit A/c:

a. All the Clients listed with under the Member-Client A/c.

b. All the Security Deposit goes to the Member Deposit A/c.

4. To list the client under the Member-Client A/c:

a. The Clearing Member (CM) generates a client code according to the Client Registration form and TM-Client Agreement document and the code provided to the Bank.

b. After receiving the client code the bank will generate the Bank A/c to the client for trading purpose under the specified Trading Member’s Client and Member. This A/c is different than other general bank A/c.

c. After generating and listing the client’s Bank A/c; bank will inform the Bank A/c number to the A/c holder Client, his/her Clearing Member (CM) and his/her Trading Member (TM).

5. The client can transfer the money from his/her Saving/Current A/c to his bank A/c listed under the Member-Client A/c for the trading purpose as the following way:

a. Through online internet banking, and

b. Through Cheque of NIBL or BOK itself.

c. Cash is not received directly in Member Deposit A/c and Member Client A/c. The client only able to trade after depositing the required money into his A/c listed under the Member-Client A/c. (Note: after deposition of required money into the client’s A/c listed under the Member-Client A/c, the Clearing Member (CM) transfers the money into the Software Terminal; then only the client can perform the trade.)

6. The Client can withdraw the money from his/her A/c listed under the Member Client A/c to his/her Saving/Current A/c as the following way:

Page 6: Introduction - NIC Housenichouse.net/downloads/proposal.pdf · The services provided by NEFDM were designed having you in mind. The services were also developed for both the beginner

a. Client should write the email from our Software Terminal to the Clearing Member (CM) with mentioning the subject of Withdraw the Amount they wanted. b. After the receiving the email/message from Client/Sub-TM/TM TWS with the subject of Withdraw the amount; CM checks the requested amount whether payable or not? And it will transfer the requested amount to client’s Saving/Current A/c if the CM finds the requested amount is payable.

Change in Margin

In terms of provision of the Rules and Byelaws of Exchange; our members are notifies as under:

Products contract/symbol Previous margin amount

Updated margin amount

Gold EXPGOL Rs. 25,000 Rs. 20,000

Silver EXPSIL Rs. 25,000 Rs. 20,000

Copper EXPCOP Rs. 25,000 Rs. 20,000

Crude oil EXPCRU Rs. 25,000 Rs. 20,000

Members are requested to take note on the above. All above reduced margin will be effective from Monday, August 31, 2015.

Kindly refer to Market Operation Department for any kind of confusion or email at [email protected].

(Note: Margin Amount is subject to change without prior notice as per the volatility of market)

Regards,

Lalit sah

+977-9801137395

Nepal future and Derivative Market Ltd. , Everest Marg, New Baneshwor, Kathmandu.

Instructions for Mark to Margin (Margin Call)

1. The Exchange will send the Margin Call Amount at End of the Day (EOD) by 3:00 AM on standard conditions.

Page 7: Introduction - NIC Housenichouse.net/downloads/proposal.pdf · The services provided by NEFDM were designed having you in mind. The services were also developed for both the beginner

2. Trading Member/Sub Trading Member/Client should pump the Margin Call Amount before/between by 3:00 PM on next trading day.

3. If the Client didn’t pump the Margin Call Amount till 3:00 PM on next trading day, the clearing member will square off (auto liquidate) the position till 3:00 PM at FIFO basis.

4. The Margin Call amount maintained only in these cases:

a. If the Amount of Margin Call deposited by client.

b. If the effective margin is positive at the time of 3:00 PM, on next trading day with positive favor of market towards client holding positions.

c. If the client or trading member or sub trading member themselves square off the position and the effective margin is positive.

Note: Margin call couldn't waived by hedging positions, minimum amount than margin call message (This is only applied if the effective margin is negative figure at 3:00 PM) and effective margin seen positive before the time of 2:55 PM and it again negative by 3:00 PM.

NEFDM offers its clients 24 hrs services, Precious Metals and CFD trading for Commodities. We are committed to

ensuring ease of bank transfers, tight spreads and no commissions. We pride ourselves on our excellent customer

support team and advise them with all their trading requirements.

Please feel free to contact us should you have any question via [email protected], or call us 24 hrs a

day on+977-9801137394/5/6.

The risk of losses involved in the transaction or speculations in the foreign commodity or other financial markets

can be considerable. Trading with stock or commodities isn't suitable for every investor based on the fact that the

stock markets or commodities are likely to fluctuate according to the market conditions. Please think carefully

whether such trading suits you, taking into consideration all the relevant circumstances as well as your personal

resources. Speculate only with funds that you can afford to lose. For more information please refer to our Risk

Disclosure.

This communication is to be treated as confidential and the information in it may not be used or disclosed except

for the purpose for which it has been sent. If you have reason to believe that you are not the intended recipient of

this communication, please contact the sender immediately.

No employee or agent is authorized to conclude any binding agreement on behalf of NEFDM, FIH and or their

affiliates with another party by e-mail without express written confirmation by an officer of FIH, with address at

baneshwor, ward no.10, Everest marg, Kathmandu, Nepal.

Risk Warning

NEFDM offers various financial products (“the Products”) allowing for inter alia,

the carrying out of transactions in Contracts for Difference including but not

Page 8: Introduction - NIC Housenichouse.net/downloads/proposal.pdf · The services provided by NEFDM were designed having you in mind. The services were also developed for both the beginner

limited to, commodities, futures and options and other financial assets (CFDs).

However owing to the fact that different regulations apply in different regions,

restrictions may apply and some of the financial product offered by NEFDM may

not be available to clients in certain regions. For example CFD’s may not be

offered in Romania. Therefore some of the products offered by NEFDM are not

intended and not available to certain clients within certain Jurisdictions and

territories and are therefore not offered within those in jurisdictions where the

prohibitions to offer and trade the products apply. Some of the products

mentioned in the risk warnings relate to products that are available to recipients

residing in countries where the provision of such products and services would not

constitute a violation of mandatory applicable legislation or regulations. This is a

general risk warning and the Information provided herein is of a general nature

dealing with all the products offered by NEFDM. This risk warning notice (the

“Risk Warning Notice”) cannot and does not disclose all of the risks of trading in

spot foreign exchange (“Spot Forex”) and foreign exchange contracts for

difference (“CFDs”). The purpose of this notice is to describe the major risks of

trading CFDs. General You should not engage in speculative CFD trading unless

you understand the basic aspects of such trading and its risks. – For example, how

positions are opened and closed, how profits and losses are made and the extent

of your exposure to risk and loss. Trading in CFDs is speculative and involves a

high degree of risk. In particular because it will be conducted using margin, price

changes in CFD can result in significant losses. Therefore, trading in these

contracts is appropriate only for persons who understand and are willing to

assume the economic, legal and other risks involved in such transactions. You

should be satisfied that CFD trading is suitable for you in the light of your financial

circumstances and attitude to risk. If you are in any doubt as to whether CFD

trading is suitable for you, please seek independent advice from financial services

professional. NEFDM does not provide such advice. Prices quoted to you by

NEFDM will include a spread, mark-up, or mark-down when compared to prices

that NEFDM may receive or expect to receive if it were to cover transactions with

you by a trade in the interbank market or with counterparty. Although dealing

spreads are common in the foreign exchange markets, the total impact of spreads

may be significant in relation to the size of the margin you post and may make it

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more difficult for you to realize a profit from your trading. The “gearing” or

“leverage” available in CFDs and spot trading (i.e. the funds NEFDM requires you

to provide when a position is opened compared to the notional size of trade you

can enter into) means that a small margin deposit can lead to large losses as well

as gains. It also means that a relatively small movement can lead to a

proportionately much larger movement in the size of any loss or profit which can

work against you as well as for you. You may lose all amounts you deposit with

NEFDM as Margin. The placing of certain orders (e.g. “stop-loss” or “limit” orders)

that are intended to limit losses to certain amounts may not always be effective

because market conditions or technological limitations may make it impossible to

execute such orders. Please also note that for all orders (including guaranteed

stop loss orders) you may sustain the loss (which your order is intended to limit)

in a short period of time.

NEFDM does not undertake any obligation to provide you with market or other

information we possess, nor to alter or refrain from our own trading.

Trading Risks

Slippage NEFDM endeavors to provide clients with the best pricing available and

attempts to get all orders executed at the requested rate. However, there are

times when, due to an increase in volatility or volume, orders may be subject to

slippage. This most commonly occurs during fundamental news events, trading

halts, weekends or other market gaps. The volatility in the market may create

conditions where orders are difficult to execute, since the price may fluctuate by

many pips in a short time due to the extreme market movement. Although the

client may request to execute at a certain price, the market may have moved

significantly such that it is impossible to execute the order at the requested price

and so the order will be executed at the best available price. Once a stop loss

order is triggered, it becomes an “at best market” order, and will be executed at

the nearest possible rate. There is no guarantee it will be executed at any

particular given price. Therefore, stop loss orders may incur slippage depending

on market conditions. It is important to note that slippage does not affect the

Page 10: Introduction - NIC Housenichouse.net/downloads/proposal.pdf · The services provided by NEFDM were designed having you in mind. The services were also developed for both the beginner

negative balance protection, and you will never lose more than the amount

invested, even if a slippage occurs.

Delays in Execution

A delay in execution may occur for various reasons, such as technical issues with

the trader’s internet connection to the Om technology servers, which may result

in “hanging” orders. The Trading Station on a trader’s computer may not be

maintaining a constant connection with the Om technology servers due to a lack

of signal strength from a wireless or dialup connection. A disturbance in the

connection path can sometimes interrupt the signal, and disable the Trading

Station, causing delays in transmission of data between the trader’s Trading

Station and the NEFDM server. If at any time you are unable to access the Trading

Station to manage your account, you may call the Trading Desk.

Hanging Orders

NEFDM provides its clients with no dealing desk execution. During periods of high

volume, hanging orders may occur. Generally, the order has been executed, but it

is simply taking a few moments for it to be confirmed. During periods of heavy

trading volume, it is possible that a queue of orders will form. That increase in

incoming orders may sometimes create conditions where there is a delay in

confirming certain orders. Depending upon the type of order placed, outcomes

may vary. Depending upon the order type, the position may in fact have been

executed, and the delay is simply due to heavy internet traffic. Keep in mind that

it is only necessary to enter any order once. Multiple entries for the same order

may slow or lock your computer or inadvertently open unwanted positions.

Grayed Out Pricing

NEFDM does not intentionally "gray out" prices; however, this is a condition that

occurs on the opening of markets, when liquidity decreases, on weekends or

when market makers that provide pricing are not actively making a market. At

times, a severe increase in the difference of the spread may occur due to a loss of

connectivity with or due to an announcement that has a dramatic effect on the

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market that dries out liquidity. Such graying out of prices or increased spreads

may result in margin calls on a trader’s account.

Hedging

The ability to hedge allows a trader to hold both buy and sell positions in the

same pair simultaneously. Traders have the ability to enter the market without

choosing a particular direction for a pair. While the ability to hedge is an

appealing feature, traders should be aware of the factors that may affect hedged

positions. This subject to the stop loss limitation set out below.

Stop loss

A Stop loss order is actually a limit order. The Stop Loss order executes a deal at a

relative loss, as determined by the client, at a rate inferior to the current market

rate. The client can decide on a stop loss rate for opening or closing a position –

increasing or decreasing his exposure. Using a Stop Loss order to open a position

(or an exposure) is an order to buy or sell one financial asset against another, at

an inferior rate to the market rate. Using a Stop Loss order to close a position or

to decrease an exposure, is an order which executes an opposite position to an

existing one/s (e.g. closing a position) at a rate inferior to the market rate. A Stop

Loss order is normally executed at the rate defined by the client, with the

exception of the occurrence of extreme rate volatility during market trading hours

(such as during dramatic news events), during trading halts or over the weekend,

when the first trading day after the trading halt or weekend starts with

considerably different opening rates to the market closing rates. In these

circumstances, the order will be executed at the nearest possible rate (i.e. market

rate during the execution (“at best market” order).Please note that some other

instruments (e.g. commodities and indices) which are not traded on a 24 hours

may experience a market gap on a daily basis, and are therefore more susceptible

to slippage. Therefore, these instruments may experience more incidents of

executing Stop Loss orders at best market rate.

Diminishing Margin

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A margin call may occur even when an account is fully hedged, since spreads may

widen, causing the remaining margin in the account to diminish. Should the

remaining margin be insufficient to maintain any open positions, the account may

sustain a margin call, closing out any open positions in the account. Although

maintaining a long and short position may give the trader the impression that his

exposure to the market's movement is limited, if insufficient available margin

exists and spreads widen for any period of time, it may certainly result in a margin

call on all positions.

Rollover Costs

This term refers to the interest either charged or applied to a trader's account for

positions held "overnight” or every 48 hours (depending on the account type),

meaning after Midnight (GMT) on NEFDM’s Trading Station. It is important to

note that the accumulative "overnight” rollover charges may be higher than the

forward outright. When all positions are hedged in an account, although the

overall net position may be flat, the account can still sustain losses due to the

spread that occurs at the time rollover occurs.

Prices Updating

Before the Open Shortly prior to the open, the Trading Desk refreshes rates to

reflect current market pricing in preparation for the open. At this time, trades and

orders held over the weekend are might be executed. Quotes during this time are

not executable for new market orders. After the open, traders may place new

trades, and cancel or modify existing orders.

Liquidity

Please be aware that when markets tend to be thinner than usual, these thinner

market conditions may result in wider spreads, as there are fewer buyers and

sellers and NEFDM cannot guarantee a fixed spread.

Gapping

Monday’s opening prices may or may not be the same as Saturday’s closing

prices. At times, the prices on the Monday open are near where the prices were

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on the Saturday close. At other times, there may be a significant difference

between Friday’s close and Sunday’s open. The market may gap if there is a

significant news announcement or an economic event changing how the market

views the value of Commodities. Traders holding positions or orders over the

weekend should be fully comfortable with the potential of the market to gap. One

of the great things about trading at NEFDM is that outside of announced major

holidays, the trading hours routinely close two days in a week, which corresponds

with the hours of major banks and financial institutions.

Weekend Risk

Traders who fear that the markets may be extremely volatile over the weekend,

that gapping may occur, or that the potential for weekend risk is not appropriate

for their trading style, may simply close out orders and positions ahead of the

weekend.

Margin Calls

The idea of margin trading is that your margin acts as a good faith deposit to

secure the larger notional value of your position. Margin trading allows traders to

hold a position much larger than the actual account value. NEFDM’s online

trading platform has margin management capabilities, which allow for this high

leverage. Of course, trading on margin comes with risk, since high leverage may

work against you as much as it works for you. If account equity falls below margin

requirements, the NEFDM Trading Station will trigger a Margin Call to close all

open positions. Please keep in mind that when the account's useable margin

reaches zero, all open positions will be closed. This process is entirely electronic,

and there is no discretion on NEFDM’s part as to the order in which trades are

closed. Such discretion would require NEFDM to actively monitor positions and

accounts.

Risks Associated with Binary Options

All Clients wishing to invest in Binary Options should carefully read this

document. However, it should be noted that the information in this document

cannot and does not disclose or explain all of the risks and other significant

Page 14: Introduction - NIC Housenichouse.net/downloads/proposal.pdf · The services provided by NEFDM were designed having you in mind. The services were also developed for both the beginner

aspects involved in dealing in Binary Options. The Client should not trade or invest

in Binary Options unless he/she knows and understands the features risks

involved and that he/she may lose entirely all of his/her money. Binary Options

are options that pay a pre-determined, fixed amount, depending on whether or

not an event occurs at the time the Binary Option expires. Binary Options can

have only one of two possible outcomes and allow you to take a simple “Yes or

No” approach. Like traditional options, Binary Options are based on an underlying

asset such as currencies, commodities, indexes or stocks, however one of the

most significant differences from traditional options, among others, is that there

can be only two outcomes for the option, either the client is paid the return upon

the occurrence of the event, or the client loses the investment amount as

determined in each option. Trading in Binary Options is speculative and involves a

high degree of risk that can result in the loss of your entire investment. Therefore,

trading in Binary Options is appropriate only for persons that understand and are

willing to assume the economic, legal and other risks involved in such

transactions. You should be satisfied that Binary Options trading is suitable for

you in light of your financial circumstances and attitude towards risk before

trading. You should not engage in speculative Binary Options trading unless you

understand the basic aspects of such trading and its risks. If you are in any doubt

as to whether Binary Option trading is appropriate and suitable for you, please

seek independent advice from a financial consulting professional. NEFDM does

not provide such advice. It is your responsibility, taking into account your personal

circumstances and financial resources, to take particular care and make careful

considerations independently, both prior to applying to engage in Binary Options

with the Company, as well as prior to making any individual order. Where you do

not understand the risks involved in applying for a trading account with NEFDM or

in making any individual order, you should seek advice and consultation from an

independent financial advisor. If you continue to not understand the risks

involved in trading in Binary Options, you should not trade at all. You are advised

that the Binary Options offered by the Company are not traded under the rules of

any recognized, designated or regulated exchange. Consequently, engaging in

Binary Option trading may expose you to substantially greater risks than

investments which are so traded. You are warned of the following risks: (a)

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Derivative financial instruments and related markets can be highly volatile. The

prices of the underlying instrument which a Binary Options refers to may

fluctuate rapidly and over wide ranges and may reflect unforeseeable events or

changes in conditions, none of which can be controlled by the Client or NEFDM.

(b) Trading in Binary options is speculative and involves a high degree of risk. In

particular because it involves in two possible outcomes, one of them may include

the loss of the entire investment amount. (c) Trading in Binary Options is

appropriate only for persons who: (a) understand and are willing to assume the

economic, legal and other risks involved in such transactions; and (b) are

financially able to withstand losses of their entire investment funds.

(d) NEFDM makes efforts that the quoted prices of each underlying asset that a

Binary Option refers to will be reasonably related to the actual prices of such

asset available in the market. NEFDM makes no warranty, expressed or implied

that the quoted prices represent prevailing market prices.

(e) NEFDM may have access to information that is not available to you, may have

acquired trading positions at prices that are not available to you, and may have

interests different from your interests. NEFDM does not undertake any obligation

to provide you with market or other information we possess, nor to alter or

refrain from our own trading.

(f) Information of the previous performance of any underlying asset does not

guarantee its current and/or future performance. The use of historical data does

not constitute a binding or safe forecast as to the corresponding future

performance of the underlying asset to which the Binary Options refers.

If there is anything you do not understand, please contact our Customer Services

Team on [email protected]