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Terms & Conditions for Spread Betting (supplemental Terms and Conditions for Binaries below) Capital Spreads is a brand name of London Capital Group Ltd November 2007 Warning Wins and losses when spread betting can be many times your original stake. Depending on your bet, the market you are betting on and the general market condition prevailing at that time your losses may be unlimited. You should only bet if you are prepared to accept this degree of risk and if spread betting matches your investment objectives. The nature of spread betting makes it a high-risk form of gambling. We strongly recommend that you read the risk warning notice that accompanies these terms and conditions and may be found on our website. Likewise we strongly recommend that if you are unable to understand any part of either these Terms and Conditions or the Risk Warning Notice you should contact London Capital Group with your questions before agreeing to them. Terms and Conditions – GeneralLondon Capital Group Ltd is a financial/spread betting bookmaker and is authorised and regulated by the Financial Services Authority (‘FSA’). The terms and conditions agreement does not affect London Capital Group’s obligations to you under the Financial and Markets Act 2000 or the rules of the FSA which will take precedence in the event of any conflict between them and these Terms and Conditions. The following Terms and Conditions form the agreement, which governs your contract with London Capital Group Ltd. These terms and conditions may be altered from time to time by London Capital Group by notice to you; such notice may take the form of an electronic message. If, subsequent to receiving this electronic message, you make any new opening trades, London Capital Group take this as acceptance of the new terms and conditions. If you do not accept any proposed change in these terms and conditions, you must inform London Capital Group Ltd who will reserve the right to close your account. In this eventuality London Capital Group will give you 7 (seven) days notice. By completing and signing the application form or by ticking the relevant, ‘I agree’, box online you are stating that that you agree to said Terms and Conditions. 1.0 Introduction 1.2 We do not provide investment advice and none of the information provided on our website or in any promotional literature should be construed as investment advice. Any comments or statements made by employees of London Capital Group Ltd are not, in any way, a recommendation to enter into, or close out, a bet. 2.0 Definitions “Available Margin” see “Trading Resources” "Client", "you", “customer” and "your" a person or company who has opened an account with London Capital Group Ltd and has agreed to be bound by these Terms and Conditions. “Electronic Confirmation Message” an email or other form of electronic message sent by London Capital Group Ltd to confirm receipt and acceptance by London Capital Group Ltd of your spread bet contract “Expiry Date” means the expiry date and time of a spread bet contract " 2000 Act" The Financial Services and Markets Act 2000 "FSA" the Financial Services Authority “IMR” refers to Initial Margin Requirement. This number represents the minimum available funds required to place an opening bet of £1/$1/€1 in each market. i.e. if the IMR is 15 you must have at least £15 in your account to make a £1 bet. “Limit” Order refers to an instruction to take a profit on an open bet if our quote reaches the level requested or as an ‘if done’ instruction on a ‘new order’. "London Capital Group " “London Capital Group Ltd” “LCG” “LCG Ltd” "we" "us" "our" the spread betting division of London Capital Group Limited. "Margin" a term that describes the cash required/being used on your account to either open a new bet or run your existing bets. See clause 9 "Margin Call" a request for payment of Margin as referred to in clause 9. “Market” An Indices/share/forex/commodity or any other product that may be quoted by London Capital Group Ltd from time to time "Minimum (‘Min’) IMR" determines the minimum amount of money required to open a new bet when multiplied by the stake. “New Order” an instruction to open a new bet at a possible future ‘Quote’ “OTP” Online Trading Platform, London Capital Group Ltd website and interactive dealing system as managed under the URL www.capitalspreads.com or any other online division of London Capital Group Ltd. “Quote”, “Our Quote” The price quoted by London Capital Group Ltd via its online trading platform or over the telephone. This quote may differ from the ‘underlying market’ due to interest rates, expected dividends, stock splits or scrip issues. “Trading Resources”, “Available Margin” the amount of money available on your account that may be apportioned to new bets or to moving current stop levels. "Terms" the terms and conditions set out herein, the Product Information Sheets and any amendments 3.0 Your Account 3.2 London Capital Group Ltd requires that you must fill out and send to us an application form either electronically online or on the printable form available on www.capitalspreads.com or the one available with these terms and conditions. All mandatory sections must be filled out and any information supplied must be true and correct to the best of your knowledge. Any incorrect or unclear information supplied will result in either an outright rejection of the application or at the very least a delay in the opening of the customer account. There is no other allowable form of application. 3.3 In signing, or electronically remitting to us, the application form you are authorising London Capital Group Ltd to make such searches as it sees fit to certify that the information that you have supplied is full and correct. Such searches will include, but may not be restricted to, information from the electoral register and any credit agencies approached by London Capital Group Ltd. 3.4 London Capital Group Ltd will make periodic checks of your details to verify that the details supplied by you have not changed. 3.5 You must immediately inform London Capital Group Ltd in writing as to any material change in your financial circumstances or any change to the information given on your Application Form (including change of employment, address, contact details and e-mail). In London Capital Group Ltd’s absolute discretion it may accept such notification over the telephone or by electronic messaging system. Any losses that may be incurred by misdirection of contract details due to incorrect or out of date e-mail addresses are entirely your responsibility 3.6 London Capital Group is not obliged to open an account for any customer and may refuse any application for any reason. London Capital Group is under no obligation to inform a client as to the reason for any refusal of an application form. 3.10 It is your sole responsibility to inform London Capital Group Ltd as to whether information concerning your account transactions should be reported to your employer (under the FSA 2000 Act), including its compliance officer and to send contract notes and statements of your account to that compliance officer or to any other person authorised by your employer to receive such information. 3.11 Insolvency Event 3.11.2 in the event of your insolvency London Capital Group Ltd may (but is not compelled to): 3.12 In accordance with the Financial Services Client Money Regulations 1991 ("CMRs") we hereby inform you that London Capital Group does not pay any interest on any monies held by us. London Capital Group Ltd is required, under the CMRs, to segregate 'Client money' (as defined in such regulations). 3.13 In agreeing to these Terms and Conditions you authorise London Capital Group Ltd to telephone or otherwise contact you at any time whatsoever in order to discuss any aspect of your account with London Capital Group Ltd or any aspect of London Capital Group Ltd or its associated companies business. 3.14 Client Refunds 4.0 Mechanics of making a Bet 4.3 London Capital Group Ltd quotes a two-way market in a stake size acceptable to London Capital Group Ltd involving a spread between the buy and the sell price. Customers may 'buy' at the higher price or 'sell' at the lower price. 4.5 Before access is permitted to the Online Trading Platform area you will be obliged to enter your account number and Password. When placing a bet via the Online Trading Platform your confirmation will be via an e-mail contract note. The contract is binding on both parties except for instances of “Pricing Error” (2.1 and 12.1). London Capital Group Ltd will treat bets placed via the Online Trading Platform as active on receipt of such an instruction and of its acceptance. Bets placed via the Online Trading Platform will normally be confirmed at the time of the transaction by electronic means. 4.10 London Capital Group Ltd recognises that in some circumstances it may be necessary or desirable for you to authorise someone to manage your account. You do so at your own risk and both you and the person you wish to authorise to operate your account will be required to execute and deliver to London Capital Group Ltd a letter in the form of a signed Power of Attorney document authorising and appointing such person ("an Authorised Third Party") to operate your account. If you have opened an account electronically, and we do not have an original of your signature, you will not be able to appoint an Authorised Third Party until such time as you furnish us with an independently verified example of your signature (i.e. photocopy of your passport/driving licence) You will be held fully responsible for all actions of the Authorised Third Party. London Capital Group Ltd shall be entitled to accept instructions from such Authorised Third Party until receipt of a written notice from you stating that the authority of the Authorised Third Party is revoked. Such written notice (to be effective) must be sent to London Capital Group Ltd Customer Services Department by registered mail or by personal delivery countersigned by an officer of London Capital Group Ltd. Upon receipt of this instruction London Capital Group Ltd shall change your account number and any passwords attributable to it. Notwithstanding any of the aforementioned London Capital Group Ltd shall be entitled, and without notice to you, to refuse to accept instructions from any Authorised Third Party and to treat the appointment of any such Authorised Third Party as terminated. 4.11 All customers are advised to keep their own written records of all transactions that they have entered into with us whether over the telephone or over the Online Trading Platform. 4.13 A bet with London Capital Group Ltd can only be made during London Capital Group Ltd Market Hours for the market in question and within the permissible minimum/maximum stake sizes (unless otherwise agreed by London Capital Group Ltd). 5.2 Each bet you place has a Margin Requirement associated with it. The minimum margin requirement is determined (save for certain markets such as binaries and special markets) by multiplying the bet stake by the relevant contract minimum IMR figure. 5.3 Each contract Minimum IMR may be changed from time to time by London Capital Group Ltd without notice to you (for example during volatile market conditions or due to the illiquid nature of any market) and this new minimum IMR multiplier will be applied to all your existing open bets as well as any new bets. Most contract's minimum Initial Margin Requirements (IMR) are set out in the Product Information Sheets which are correct at the time of publication. Minimum IMR multipliers which are not set out in the Product Information Sheets or which have changed since the date of publication of the Product Information Sheets will be quoted on request or posted on the Website. It is your responsibility to ensure that you are using the most recent minimum IMR applicable. 5.4 Occasionally new or 'one off' markets are created, these markets attract their own minimum IMR that may not be published but will be available on demand. 6.0 Contract Specifications
London Capital Group Ltd has to the best of its ability insured that the Product Information Sheets are correct but London Capital Group Ltd reserves the right to amend any part of the Product Information Sheets at any time. 6.3 Current spreads on contracts will be quoted to you on request. London Capital Group Ltd has the right to vary spreads on any contract without notice especially in, but not limited to, volatile market conditions and/or illiquidity of the underlying market. At London Capital Groups’ discretion quoted spreads made via the telephone may differ from the spreads available on the online trading platform. 7.0 Your Bet 7.2 Trading Resources (commonly called ‘available margin’) on Deposit Accounts - In the case of Deposit Accounts the Trading Resources are a calculation of the Account Balance less the margin used on any open bets. 7.4 Notwithstanding any other provision of these Terms, London Capital Group Ltd is, entitled in its absolute discretion, to permit stakes which are above the recognised maximum stake for a particular market 7.5 London Capital Group Ltd is entitled in its absolute discretion to close (on London Capital Group Ltd ‘s current quote for that market) any bet placed in excess of any recognised maximum stake for a particular market notwithstanding that London Capital Group Ltd may previously have accepted that bet. 8.0 Opening and Closing of Bets 8.2 London Capital Group Ltd will only accept bets, whether opening or closing, via the telephone by talking directly to an authorised dealer of London Capital Group Ltd or via the London Capital Group Ltd online trading platform. London Capital Group Ltd has no obligation to transact orders received via any other medium (specifically via e-mail or via letter or via verbal conversations over non recorded telephone lines (i.e. dealers personal mobile phones) or via instructions given in a personal conversation). 8.3 You are not required to close a bet prior to the Expiry Date provided that your Account is not in deficit. However, in certain circumstances and in accordance with the Terms and Conditions, London Capital Group Ltd shall be entitled or may be required to close your spread bet contracts prior to their Expiry Date notwithstanding that your Account is not in deficit. 8.4 Unless market conditions dictate otherwise, all spread bet contracts still open upon their Expiry Date will be automatically closed at the London Capital Group Ltd Settlement Price details of which may be found in the Product Information sheets which form part of these terms. 8.5 If the Expiry Date on a contract/bet is not a recognised Business Day of the relevant underlying market, then the Business Day immediately preceding that stated will be considered as the Expiry Date unless an alternative is specifically stated in the Product Information Sheets or London Capital Group Ltd notifies you otherwise. 8.6 Open spread bet contracts will automatically close on their Expiry Date and at their Expiry Time and any subsequent closing of any such spread bet contract by you (whether or not accepted in error by London Capital Group Ltd) will be void. 8.7 London Capital Group Ltd will treat all bets as a Buy or a Sell without reference to whether such actions open a new bet and/or close (or part close) an existing one. 8.8 You may not hold two opposing bets in the same market at the same time. Any bet taken in the opposite direction to an existing bet will close out either in part or in whole the existing bet. 8.9 In certain market conditions it may not be possible to close single share spread bet contracts with sizable market consideration in full at one price. Such spread bet contracts may instead be closed at a price reflecting the price at which London Capital Group Ltd is able to transact any relevant underlying hedge but only during the trading hours of the underlying market (whether or not the relevant spread bet contract was opened during or outside the underlying market trading hours). 8.10 London Capital Group Ltd may at its sole discretion close and/or cancel any or all spread bet contracts and any associated bets upon the occurrence of: 8.11 All Account Balances that are in debit are immediately due for payment by whatever means is available to you. 9.0 Margin Payments 9.2 London Capital Group Ltd is not obliged to make Margin Calls of you at all or within any specific time period. We shall not be liable to you for any failure by us to contact you or attempt to contact you. It is your responsibility, and not London Capital Group Ltd to monitor your open bets and all other relevant factors used to calculate Margin payable. 9.3 Margin Calls may be made in person, by telephone, telephone answering machine message, voice mail, letter, fax, email or any other means of electronic communication. If the contact details provided by you change in any way you must immediately contact London Capital Group Ltd to provide new or alternative contact details to ensure you can be notified of Margin Calls. A margin call is deemed to have been made if London Capital Group Ltd has endeavoured to contact you using the details supplied by you for that purpose. The margin call will be deemed to have been made at the first time that such attempts have been made. Any message left on any electronic medium either mobile and telephone answering machine using the designated numbers supplied by you will be deemed as evidence of a margin call having been made. Any FAX requesting a margin payment will be deemed received by you upon our receipt of a successful transmission confirmation. Any e-mail sent to you will be deemed received upon receipt by London Capital Group Ltd of a successful delivery notice. 9.4 Any request that you make contact with London Capital Group Ltd for whatever reason should be regarded as vital and should be acted upon immediately. 9.5 You must pay Margin immediately in the form of cleared funds in pounds sterling, US dollars or euros or such other currency as may be acceptable to London Capital Group Ltd by not later than 4.00pm London time on the first Business Day immediately following the day on which the Margin Call is made or deemed to have been made. 9.6 London Capital Group Ltd may at its sole discretion alter the margin requirements on your account 9.7 If you fail to pay Margin in accordance with paragraph 9.5 London Capital Group Ltd may, but is not obliged to, close any or all of your open bets on the basis of London Capital Group Ltd current market quotation(s) or if the market is closed the next available when it does open and/or close your Account and not open any further spread bets contracts for you. 9.8 Notwithstanding that a Margin Call has not been met, London Capital Group Ltd may at it’s sole discretion allow your open spread bet contracts to run and allow you to open further spread bet contracts. This will not affect London Capital Group Ltd’s rights at any subsequent time to take any action under paragraph 9.7. 9.9 London Capital Group Ltd may, at its sole discretion, close all open bets if a Margin Call is not met within five Business Days of the receipt by you of the Margin Call or of our deemed receipt by you of the Margin Call as per paragraph 9.3, whichever is the earlier. 9.10 Notwithstanding any movements in the market that may reduce the Margin Call on your account you are still liable to pay the full margin as originally requested assuming you still have the same or similar bets open. London Capital Group Ltd may upon failure to pay this full margin take action under clause 9 and close all your bets. London Capital Group Ltd may take tardy margin payments as indicative of client risk and at its sole discretion may alter the margin call parameters or close the account. 9.11 Margin can be paid by telegraphic transfer or by approved debit or credit card, direct debit or any other method of immediate/electronic funds transfer acceptable to London Capital Group Ltd. 9.12 If a Margin Call or other request for payment is made to a Client who is at the time of the call resident outside the UK and is unable to make payments as per paragraph 9.11 that Client is entitled to make the Margin payment concerned by way of bank draft drawn on a UK clearing bank provided that the said bank draft must be delivered to London Capital Group Ltd by 4.30pm on the next business day after the day on which the Margin Call (or other request for payment) was made. 9.13 The Margin charged to your account is not the total extent of your financial liability to London Capital Group Ltd, as you must make good in accordance with these Terms and Conditions any losses you suffer and any other payments due hereunder. 10. Limit Orders, Stop Orders and Other Orders 10.1 It is a requirement that all London Capital Group Ltd customers place stops on every bet opened (unless otherwise informed in writing). On the Online Trading Platform the London Capital Group Ltd systems will return a stop that will either reflect the CGSL of the contract involved or be based upon the funds available in your account. This stop can be found on your deal ticket and also in the confirmation e-mail. Telephone trades will receive confirmation of any relevant stop solely via an e-mail confirmation. These stops are binding and unless altered by you will be activated on an “Our Quote” basis. 10.2 No orders are guaranteed, London Capital Group Ltd may fill orders when it is reasonably able to do so. In certain circumstances the stop level may be altered due to conditions beyond the control of London Capital Group Ltd. For example, if the relevant underlying market is open and trades through or has opened through the level of an order, commonly known as 'gapping', such order will be executed at the London Capital Group Ltd quote based upon the first price London Capital Group Ltd are reasonably able to obtain in the underlying market. In respect of markets quoted by London Capital Group Ltd outside the trading hours of the relevant underlying market, all orders are basis LONDON CAPITAL GROUP LTD QUOTE / OUR QUOTE and may be filled at the London Capital Group Ltd quote based on a price which is in London Capital Group Ltd opinion fair and reasonable in light of prevailing world markets at that time. It is your sole responsibility to ensure that you are aware of the risks involved in non-guaranteed stops and the potential liability that you may incur should the markets gap on open or should the markets encounter a Force Majeure situation. 10.3 Any orders placed as stops on open bets shall (a) be deemed "good until cancelled" ("GTC") (see paragraph 10.10) or until the contract expires or until such time as you close the relevant bet;(b) be at levels and on terms acceptable to London Capital Group Ltd; (c) be deemed to be "LONDON CAPITAL GROUP LTD QUOTE"/"OUR QUOTE"; (d) be valid in respect, solely, of the market in respect of which London Capital Group Ltd accepted the order and not for any other. For example an order instruction accepted in relation to the Daily FTSE Future contract will not apply to the next Daily FTSE Future contract (or any subsequent day) once the designated Daily FTSE Future contract on which you placed the order has expired. 10.4 During the hours when London Capital Group Ltd does not offer a spread betting service no stops or orders of any kind will be activated except by agreement with London Capital Group Ltd. Upon the opening of any market quoted by London Capital Group Ltd any currently actionable Stop, Limit or New Order will be filled at the first ‘Quote’ for the relevant market that London Capital Group Ltd are reasonably able to obtain with reference to the underlying market and the size of the bet order in question. 10.5 Orders will be subject to the maximum stake size applicable at the time of execution of the order irrespective of the maximum stake size applicable at the time of placing the order. London Capital Group Ltd reserves the right to alter the maximum stake size of any market as it sees fit. Orders that on implementation would be in excess of the maximum stake size applicable on execution may be transacted in tranches of the applicable maximum stake size until the order is filled. Clients should be aware that in volatile markets the price applicable to each tranche might differ considerably. 10.6 London Capital Group Ltd will only accept instructions in relation to orders either over the online dealing platform or over the main dealing telephone lines. London Capital Group Ltd is not obliged to accept any other instruction in relation to orders whether via e-mail, FAX or any other form of communication. When placing a stop or limit order you must ensure that you are complying with all terms and conditions relevant to your placing that order, London Capital Group Ltd at its sole discretion may refuse to take any order. 10.7 It is solely your responsibility to cancel any order you have placed which, unless you do so, may be filled by London Capital Group Ltd and may therefore cause losses to which you will be liable. In the case of stop loss orders if the related bet is closed by you the stop loss order will be deemed automatically cancelled. 10.8 London Capital Group Ltd is not obliged to inform you if an order is filled, it is solely your responsibility to ensure that you know at all times as to whether any order has been filled or is still active. 10.9 "LONDON CAPITAL GROUP LTD QUOTE" (otherwise known as "OUR QUOTE") means that (subject to all other provisions of this clause 10) an order will be executed when the London Capital Group Ltd current quote reaches the price specified in your order or trades through the price specified. All quotes are based upon an ‘underlying market’ that is sourced from either a recognized global exchange (LSE, NYSE, LIFFE etc) or from a wholesale counterparty (a quoting bank or market maker). ‘Our Quote’ may be higher or lower than the ‘underlying market’ due to interest rate costs, dividends, scrip issues, stock splits, competitor (another spread betting company) quotes or weight of Client business. For Markets quoted by London Capital Group Ltd outside the trading hours of the relevant underlying market all orders are basis LONDON CAPITAL GROUP LTD QUOTE / OUR QUOTE and may be filled at the London Capital Group Ltd quote based on a price which is, in London Capital Group Ltd’s opinion, fair and reasonable in light of prevailing world markets at that time. 10.10 Good Till Cancelled (GTC) means that the order will remain in effect until the order is filled or you cancel the order or the contract expires or in the case of a stop loss, until you close your related open bet. Having left your GTC order basis, "LONDON CAPITAL GROUP LTD QUOTE"/"OUR QUOTE", the relevant order will be valid from the market open until the market close at the end of each daily trading session during the lifetime of your order (i.e., London Capital Group’s Quoting Hours for the market concerned). If there is any form of gap between the close of the market as quoted by London Capital Group Ltd and its reopening either on the next day or, in the case of a force majeure, whenever the market officially reopens the customers stop will be executed at the London Capital Group Ltd quote based upon the first price that London Capital Group Ltd are reasonably able to obtain in the underlying market. 10.11 Good For Day (GFD) means that the order will remain in effect until London Capital Group Ltd ceases to quote the relevant market for that day. Orders on Daily markets that close and reopen during the course of a single business day will refer to the market open at the time that the relevant order was given or, in the case where the previous days market has expired but the next days market has yet to open, will refer to the next business days market. For example, an order on the Daily FTSE future given before 16.30 will refer to the current days Daily FTSE future but an order given after 16.30 will refer to the next business days Daily FTSE future. All GFD orders are based on a ‘London Capital Group Ltd Quote’ basis. 10.12 Good Until Orders mean that the order will remain in effect until the time and date stated when the client placed the order or until London Capital Group Ltd ceases to quote the relevant market (whichever is the sooner). All Good Until orders are based on a ‘London Capital Group Ltd Quote’ basis 10.13 Once a stop, limit or new order level is hit London Capital Group may at its sole discretion allow a client to amend this order before it has been actioned by London Capital Group. Your receipt of an e-mail confirmation of an order amendment is not binding on London Capital Group. London Capital Group may at its sole discretion decide to activate the original order if the activation of that order occurred before the amendment was made. London Capital Group shall not be liable for bets generated by client’s assumption of non-activation of a fairly executed order. 10.14 When a new order is activated London Capital Group will fill this order so long as your available resources are greater than the minimum IMR for the whole order. Any ‘If Done’ stop loss level specified by you, that requires more margin than that available, will be cancelled and a Stop Loss will be applied conforming to the CGSL. Any new order for which you have insufficient available margin for the entire stake will be cancelled in its entirety and will not be part filled.. 10.15 If a series of new orders may be filled to close existing positions and/or open ‘new’ positions then these orders will be filled by London Capital Group in any sequence determined by London Capital Group. If this results in subsequent orders having insufficient trading resources for activation, then these orders will be cancelled. London Capital Group will not look at an order filling sequences that may result in one order being filled and another failing, London Capital Group will fill orders as and when they are seen by their dealers and at their sole discretion. 10.16 If a ‘new order’ is slipped on activation and the order is actioned at a price that would also have activated any associated ’limit’ orders, then the bet will immediately be closed with a loss to the client of the prevailing London Capital Group quoted spread for that market. 10.17 '24 hour' Trading If a 24 hr market is not available for trading for whatever reason clients will not be able to add ‘new’ or amend ‘existing’ orders. If a 24-hour market is not available to trade for whatever reason any orders, which may have been eligible for activation, had the market been open will NOT be filled unless they are still subject to activation upon reopening of the market. If the order is still subject to activation they will be filled at the first available quote on our platform upon reopening of the market. If a market is unavailable for trading, clients will be unable to make any trades in that market until such time as the market reopens. Out of hours trading is restricted to much smaller stakes than those available in normal business hours, although clients may close out existing positions of whatever size. Clients will also be unable to build stakes in out of hours markets as, in general, the maximum single stake available will also be the total allowable open position. If a client already has a total open position greater than the maximum allowable stake he/she will not be able to increase that position. If a ‘new’ order is activated in ‘24hr’ market time that order is subject to the trading limits permissible during ’24 hr’ trading. (i.e. if the trading limit in a ‘24 hour’ market is £10 a point but a client has placed a £20 a point ‘new’ order (even if the order was placed in normal market hours) then that order will be cancelled if activated during hours outside of London Capital Groups’ normal hours of business and no position will be created). This order limit does not apply to stops. 11. Roll-Over Daily Rolling Bets are available in a variety of markets. Each market has its own conditions and spread, which may vary at the discretion of London Capital Group. Rolling bets incur a charge (or a refund) for each day that the bets are open at the close of London Capital Group’s normal hours of business. This charge (refund) is calculated on the total equivalent market value of each bet held overnight. London Capital Group will charge (or pay) interest on this market value for each day that the bet is held open overnight. London Capital Group will charge the relevant funding rate plus 2% for long bets (buy bets) and will pay the relevant funding rate minus 2% for short bets (sell bets). These bets will remain open so long as the client has funding available to support the Minimum IMR for each market. London Capital Group reserves the right to unilaterally move stop levels on any open rolling bet such that the client remains in a positive ‘available funds’ position. Should the client be unable to support any rolling bet due to the ongoing cost of the daily rolling charge (and the constraints of the minimum IMR) London Capital Group reserves the right to close part or all of any bet sufficient to bring the client into a positive available funds position. A rolling bet has, nominally, no expiry date but may be closed by London Capital Group in situations of Force Majeure (clause 13) or in situations where the cost of rolling the bet has used more than the client’s available margin. When bets are closed by London Capital Group the price will be at the full spread quoted by London Capital Group at that time or at a price that in the opinion of London Capital Group fairly reflects the price at that time. All other terms and conditions apply to Daily Rolling Bets. 12. Errors 13.2 If we conclude in our reasonable assessment that a Force Majeure Situation exists then we may in our absolute and sole discretion: 13.2 In the absence of fraud or bad faith, London Capital Group Ltd shall not be liable to you for any losses you may suffer by reason of any action it may take in accordance with Clause 13. 14. Account Settlement 14.3 Any client resident outside the UK may make payment by bankers draft drawn on a UK clearing bank and delivered to London Capital Group Ltd by 4.30pm on the same business day that the debit Account Balance became due. 14.6 London Capital Group Ltd has the right to debit from your Account or any other account in which you hold an interest any costs, interest or expenses incurred in recovering said debt. All Debts to London Capital Group Ltd are recoverable in law; London Capital Group will actively pursue any sum (whatever the size) that is due. 14.9 Set Off/Netting Provisions (b) Without prejudice to any par of these Terms and Conditions London Capital Group Ltd shall be entitled to require the settlement of all open spread bet contracts at any time and with immediate effect. Such settlement shall be made at the market quote for each bet at the time of settlement or at the first such time that such a settlement may be practicably made. The settlement amount in respect of each open spread bet contract shall be calculated by London Capital Group Ltd at its sole discretion as the difference between the opening value of each bet and its value on the settlement price. 14.10 A Default Event shall be deemed to have occurred if: 14.11 If a Default Event occurs London Capital Group Ltd may (but is not obliged to): 14:12 Due to fraud prevention and money laundering regulations London Capital Group will only refund monies back from where they came. When monies have been deposited by card the funds will be returned to that card where possible and where not possible London Capital Group may require sight of original bank statements showing original fund transfer to London Capital Group before refunding to said bank account. Where monies have been deposited by bank transfer London Capital Group may require sight of the original bank statement showing said deposit transfer before refunding. 15. Confirmations, Queries on Accounts and Complaints 15.4 If you receive a contract note for a bet or filled order that you allege has not been transacted by or for you, London Capital Group Ltd must be notified immediately. If you do not receive a contract note for a bet you have placed (or believe you have placed) you must notify London Capital Group Ltd immediately. 15.7 London Capital Group Ltd may at its discretion immediately close, at the prevailing London Capital Group Ltd quote or the first such quote available, any bet that is in dispute. No matter what the subsequent result of the dispute, London Capital Group Ltd will not reopen or reinstate any such closed trade. 16.0 Betting on Equities/Shares 16.3 On expiry of equity bets of less than £100 a penny/cent movement and/or of less than £30,000 total virtual value, i.e. a £1 bet on a UK share is the equivalent to buying (or selling) 100 shares so that a £50 bet on a share priced at £2.00 would have a virtual value of £10,000 (50 x 2 x 100) whichever is the least the settlement price will be based on the closing bid or offer price of the bet plus or minus the London Capital Group Ltd spread on that bet depending on the client position (if the client has an Up Bet on expiry the settlement price will be the bid of the share in the market at expiry time minus the spread and if he has a down bet on expiry the settlement price will be the offer of the share in the market at expiry plus the spread). 16.4 On expiry of equity bets of greater than £100 per penny/cent movement and/or of total virtual value greater than £30,000 London Capital Group Ltd shall settle the bet at either the average price of the underlying share in the last hour of trading of the last dealing day on a fair and reasonable, in the assessment of London Capital Group Ltd, bid/offer spread plus or minus the relevant London Capital Group Ltd spread or at the price achieved by London Capital Group Ltd in removing its hedge on the relevant bet during the course of the final business day of the relevant expiry date plus or minus the relevant London Capital Group Ltd spread. 16.5 If a spread bet is made by you in a contract that is found to be illiquid in any fashion either leaving London Capital Group Ltd unable to purchase sufficient shares to cover your bet or unable to borrow the same in the open market, London Capital Group Ltd reserves the right to cancel your bet at the opening price. London Capital Group Ltd will endeavour to inform you as soon as is possible to this event. 16.6 If a spread bet that has been made by you, in a share or contract, subsequently becomes illiquid London Capital Group Ltd reserves the right to close all or part of any such bet at the current London Capital Group Ltd quote. 16.7 If a share become subject to a take-over offer London Capital Group Ltd reserves the right to close any or all bets at any time during the take-over process or to adjust the opening price of your bet to reflect any cash portion of the offer and/or to close the existing bet and reopen a new bet reflecting the new security that is created by the take-over. 16.8 If a share is suspended London Capital Group Ltd is entitled to ask for additional margin to cover any liability to the extent that London Capital Group Ltd considers a fair and reasonable price in the circumstances. If a share remains suspended for more than four business days London Capital Group Ltd at its sole discretion may close the bet with reference to the last official price at the time of suspension. 16.9 Assuming no fraud or bad faith London Capital Group Ltd shall not be liable to any losses howsoever caused in relation to this clause 16. 16.10 You are referred to the Product Information Sheets for the further terms and conditions relating to equity bets and associated options. 18.2 London Capital Group must notify all clients as to the reason for any change to the terms and conditions. 19. Notices 20.2 In agreement with you London Capital Group Ltd may waive or relax any of these Terms and Conditions from time to time. In particular but without limitation, where these Terms and Conditions specify certain limits or parameters to your betting activities and/or Margin requirements, London Capital Group Ltd may, but only on agreement with you, allow you to breach such limits. Any liability accrued due to such permission is your sole responsibility. Any agreement to waiver or failure to enforce any part of these Terms and Conditions shall not constitute a waiver by London Capital Group Ltd to enforce such rules at a subsequent time. 20.8 London Capital Group Ltd shall be entitled to assign, transfer, charge, sub-contract or deal in any manner with all or any of its rights and/or liabilities hereunder including by way of transfer of the same to an associated company. 22.0 Market Abuse 23.0 Taxes 24.0 Promotions Promotions are not open to employees of London Capital Group or employees of any other company engaged in direct competition with London Capital Group Ltd. Any offer which states that a credit will be made to your account means that an equivalent cash deposit will be made to your spread betting account. Customers are only permitted to apply for one cash/credit offer for spread betting and one for binary betting. London Capital Group reserve the right to withdraw these offers at any time. London Capital Group Ltd is authorised and regulated by the Financial Services Authority (FSA).
Supplementary Binary Betting Terms and Conditions The terms and conditions below encompass the rules for the use by a client of the Binary Betting trading platform and price systems as offered by London Capital Group Holdings plc (LCG) or any of its subsidiaries through any of its or their various delivery vehicles. Such terms and conditions shall be read in conjunction with the Binary Betting Offering terms and conditions (‘BBO’), which can be found on www.capitalspreads.com and together constitute an agreement (the “Terms”) between London Capital Group and you. The expression ‘the Agreement’ includes the Terms. 1. AgreementBy placing a binary bet you agree to be bound by this Agreement and you agree to make payments to us in each case in accordance with this Agreement. You agree to use the Binary Betting Offering only in accordance with this Agreement. 2. Account Suspension 3. Account security You acknowledge that we will rely on your account number and/or password to identify you and agree that you will not disclose these details to any unauthorized person.
Markets that are described as up or down on the day/hour/mid-day etc. If the market closes unchanged are defined as being UP. For ranges closing up the settlement level is defined as the higher range in the case of a cusp settlement. For example a market that closes up exactly 10 is in the up 10-20 range not the up 0-10 range. For ranges closing down the settlement level is defined as the lower range in the case of a cusp settlement For example a market that closes down exactly 10 is in the down 10-20 range not the down 0-10 range. If the closing price is unchanged on a range market the settlement is defined as up 0-10 not down 0-10 5.0 Deposit Payments/Margin Calls 5.1 Deposits can be paid by telegraphic transfer or by approved debit or credit card, direct debit or any other method of immediate/electronic funds transfer acceptable to London Capital Group. Deposits may incur charges depending on the method you select. Deposits made by UK debit card or by cheque currently incur no charges. The charges imposed on us may change from time to time and you acknowledge that we may impose charges or revise existing charges to reflect such changes. Your bank may independently charge you for bank transfers. Money paid to you by us will be paid using the same method of payment you used to deposit funds with us (e.g. where you deposit funds with us by debit card, we will credit payment to you back to that debit card). You will fulfill all commitments made on your account in the event of any Binary Betting activity. You may subject to acceptance by London Capital Group give third party access to your account by the action of the formal signing of a Power of Attorney authorization. You are responsible for any activities of a duly authorized individual. You agree that if any other person uses the Binary Betting Trading Platform or in any other way uses your account you will (subject to us taking reasonable precautions against fraud and computer hacking) be bound by such use as if it was your use, and you fully indemnify us in respect of any failure by such third party to fulfill any commitments made by such use. 7.Limitation of liabilityYou agree that your use of the Binary Betting Trading Platform is solely at your own risk and you accept that the information contained on the Binary Betting Trading Platform may contain limitations as to its accuracy or availability. 7.2 We do not warrant in any event that the information that is accessible from the Website or any other delivery mechanism is accurate, complete, current or available for betting. The contents of the Website or any other delivery mechanism are provided on an ‘as available’ basis only without warranties, representation or undertakings of any kind. 7.3 It is your responsibility to maintain the confidentiality of your password and account number. We accept no liability resulting from the unauthorised use, whether fraudulent or otherwise, of your password and/or account number. 7.4 In no event will we accept any liability for any losses you may incur as a result of placing bets on our Binary Betting Trading Platform. 7.5 Under no circumstances will our liability under these terms and conditions or in any other instance exceed £1,000. 7.6 You acknowledge that the Binary Betting Offering is provided over an open network, the internet. While the internet is generally a reliable way to communicate, no electronic system is entirely reliable or always available. We are not liable to you for any loss or damage, howsoever caused, arising directly or indirectly out of a failure or delay for your instructions to reach us over the internet, or for our communications to reach you. Further, you acknowledge and accept that, while we take reasonable steps to avoid information transmitted between us being intercepted and read by third parties, by use of techniques such as encryption, it is not always possible to avoid someone other than you or us gaining access to information about you and your dealings with us. 8. Force Majeure 8.2 If we conclude in our reasonable assessment that a Force Majeure Situation exists then we may in our absolute and sole discretion: (b) close any or all open bets; (c) refuse to take any further bets even if such bets would be closing bets; (e) cancel or fill any orders in each case at such levels as we consider in good faith and in our sole discretion to be fair and reasonable in the circumstances (g) vary (by this we mean widen) any spreads quoted by London Capital Group; 8.3 In the absence of fraud or bad faith, London Capital Group Ltd shall not be liable to you for any losses you may suffer by reason of any action it may take in accordance with Clause 8. 9. Manifest Errors 9.2 We reserve the right to void from the outset or to amend the terms of any bet containing or based upon a manifest error. A "Manifest Error" is any error that we reasonably believe to be obvious or palpable. In deciding whether an error is a Manifest Error, we may take into account any relevant information, including the state of any underlying market or event that is the subject matter of the bet at the time of the error. In making such a decision we will act reasonably and in good faith. London Capital Group’s decision shall be conclusive and binding upon you. 9.3 London Capital Group will be not be responsible for losses or potential losses sustained by you in trading on a rejected or cancelled bet. London Capital Group is in no way responsible or liable for losses made with other companies on bets taken in reference to a rejected or cancelled bet. 9.4 In the absence of fraud or bad faith, London Capital Group shall not be liable to you for any losses you may suffer by reason of any action it may take in accordance with any activity relating to a Manifest Error. 10.0 Personal Statements 11.1 We reserve the right at our absolute discretion to refuse, or decline to accept, any bet or transaction in respect of or in connection with your use of the Binary betting platform and you agree that we will not be liable to you in any way for any loss or damages that may result from any such refusal. It is your responsibility to ensure that you understand and fully comply with any laws or regulations that are relevant to you in the country in which you are resident or from which you are making use of our services. The Website does not constitute, and may not be used for the purposes of, an offer or solicitation of anyone in any jurisdiction in which such offer or solicitation is not authorised or to any person to whom it is unlawful to make such offer or solicitation. If any of the Terms shall be found to be unenforceable or invalid, such unenforceability or invalidity shall not affect any other part of the Terms (or the remaining portion of the affected part as the case may be), which shall remain in full force and effect. 14. Assignment and entire agreement You may not assign or transfer the Agreement in any way. You agree that the Agreement is the complete and exclusive agreement between you and us regarding your placing of any binary bet with us. 15. Governing lawYou agree that this Agreement will be treated as having been executed and performed in England and governed in all respects by and construed in accordance with the laws of England and Wales. The Contracts (Rights of Third Parties) Act 1999 does not apply to these terms and conditions. 16. Dispute resolution In the event that a situation arises that is not covered by the Agreement or the Rules, we will resolve the matter on the basis of good faith and fairness and, where appropriate, by taking such action as is consistent with market practice. In the event of a dispute arising our customer services staff will attempt to reach an agreed resolution. 17. Use of information The privacy policy forms part of the terms and conditions. 18. Amendments to this agreementYou agree that we may revise the terms and conditions of the Terms and amend the ‘Rules’ at any time. Any such revision or change will be binding and effective immediately upon our amendment and without reference to you.
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