Synthetic Derivatives are complex and risky products due to the complex methodology behind their price calculation. Synthetic Derivatives are subject to Corporate Events which may occur under the following circumstances:
– If the value reaches below 50 then a reverse split is carried out on the product.
– If the value closes at greater than 10,000 then a split is carried out on the product.
In case of a reverse split after the adjustment of any transaction, if the position size will be equal to or less than 0.01, then the Company will close the relevant transaction at the last available market rate and will realise the Profit & Loss.
The maximum exposure for each symbol of the Synthetic Derivatives is 1.5 million.
You must read our Key Information Document on Synthetic Derivatives for information related to this product’s methodology, performance scenarios and risks involved.
The spread of Synthetic Derivatives is determined by calculating the mid – market price of the instrument at the time the transaction is opened, multiplied by the applicable spread percentage and the position size. Please note that since the spread percentage is based on the market price, it will fluctuate in response to market movements.
Cryptocurrencies
The maximum exposure for each symbol of the Cryptocurrencies is 1 million.
Exchange-Traded Funds (ETFs)
The maximum exposure of the symbols “iShares Bitcoin Trust” and “Global X Uranium ETF” is 1 million.