Contract For Difference Overview

The client has the responsibility to fully understand the Terms and Conditions of the transactions and the client's rights and obligations under any agreement, contract or confirmation that the client may enter into with LTS.

Before the Client begins to trade, the Client should obtain a clear explanation of all commissions, interests, fees and other charges for which the Client will be liable. These charges will affect the Client's net profit (if any) or increase the Client's loss. The Client is liable for all of these at the rates determined by LTS as may be amended from time to time.

The high degree of leverage that is often obtainable in margin trading can work against the Client as well as for the Client due to fluctuating market conditions. The Client may sustain large losses as well as gains in response to a small market movement. While the amount of the initial margin required to enter into a transaction may be small relative to the value of the transaction, a relatively small market movement would have a proportionately larger impact. Hence, in the event of unfavourable movements, the risk of loss can be significant. The Client may sustain losses in excess of the Client's cash and any other assets deposited as collateral with LTS. The Client will be liable without limit for all losses, including but not limited to interest charges.

The Client may be called upon at short notice to make additional margin deposits or interest payments of substantial amounts. The Client should be aware that the Client might not be given an extension of time when a margin call is made. If the required margin deposits or interest payments are not made within the prescribed time, the Client's collateral may be liquidated without his consent. Moreover the Client will remain liable for any resulting deficit in the Client's Account and interest charged on to the Client. The Client should be aware that LTS might liquidate the Client's collateral without contacting the Client. Further, LTS may be entitled to decide which collateral to liquidate in order to best protect LTS's interests.

If the Client does not provide the required additional funds or fail to make interest payments within the prescribed time or if the market moves against the Client further before the receipt by LTS of the additional funds, notwithstanding that the prescribed time has not elapsed, LTS at its sole discretion may (but is not obligated to) close all or any of the Client's positions that the Client may have and liquidate the Client's collateral in any event without the Client's consent or prior notice.

If the amount is still not adequate to meet the Client's obligations to LTS, the Client should be aware that the Client would be liable to LTS for the difference. Thus the Client should not commit to any transaction that is beyond the Client's means and should carefully consider whether such trading or financing arrangement is suitable in light of the Client's financial position and investment objectives.

Market conditions and the rules and regulations, which govern the relevant markets are beyond the control of LTS. These market conditions and/or rules may give rise to events and/or circumstances (including but not limited to illiquidity, or suspension or restriction on trading) which may make it difficult or impossible to effect transactions and/or liquidate or offset positions and/or take any steps which the Customer may otherwise wish to take.

Transactions in markets of other jurisdictions whether or not linked to the Singapore market may expose the Client to additional risk. These markets in other jurisdictions may be subject to rules and regulations which have different or diminished investor protection. LTS undertakes no responsibility and/or liability as to the Client's awareness and/or understanding or otherwise of these rules and regulations. The Client is assumed to be aware and to understand these rules and regulations of the foreign jurisdictions. Notwithstanding existence of these rules and regulations, neither LTS nor the Singapore regulatory authorities can compel the enforcement and/or adherence to the same.

The profit or loss arising from transactions in markets of other jurisdictions and/or foreign currency denominated securities will be affected by fluctuations in foreign exchange rates.

LTS's trading facilities are supported by computer-based systems which deal with all aspects including but not limited to order-routing, execution, matching, registration and clearing of trades. There are inevitable risks in such systems including but not limited to the failure of hardware and/or software which could result in the Client's instructions not being executed accurately or at all. The Client should also be aware that the Internet may not always be a reliable transmission medium and hence there may be unexpected delays or stoppages in service provisions.

In providing a liquid market and prices for CFD transactions, LTS hereby notifies and the Client hereby consents that LTS may act as market-maker for the Client's CFD transactions. Unless otherwise specified or agreed, LTS shall act as principal to the Client for CFD transactions.

The client's buy and/or sell order goes through LTS's CFD platform and the client gets access to the market directly in which the price paid is determined by the market of the underlying shares.

LTS CFD is an Over-the-Counter ["OTC"] product. LTS shall act as principal to the client for CFD transactions.
LTS does not engage external counter party to provide CFD trading to clients.

LTS shall have the right, at its discretion, to close or terminate the CFD contract and cash-settle the contract at such
price(s) which LTS shall determine. There will be no share delivery for the settlement of such CFD contracts.