QUESTIONNAIRE     Reference No: 2018-06-23-12-01-58-eOd

1.

Have you invested in securities or derivatives in the past?
Yes
No

2.

Leverage involves the use of borrowed capital, to gain exposure to a larger investment than the initial deposit, which results in gains or losses being magnified. Leverage allows an investor to take on a high degree of market risk with only a relatively small deposit.
True
False

3.

How does leverage differ from a margin requirement?
They do not differ. They are the same.
Margin is the initial amount invested. Leverage refers to the strategy of using an initial investment to gain exposure to a larger investment.

4.

When a financial instrument you invest in has a high volatility and you use leverage (ie, only place a margin deposit to acquire it), it means your investment returns will register a:
higher profit or higher loss
higher profit or lower loss
lower profit or higher loss
All of the above

5.

Which of the statements below is not an accurate description relating to a Contract for Difference ("CFD")?
A CFD is a contract between two parties, typically described as "buyer" and "seller". The contract stipulates that the seller will pay to the buyer, or vice versa, the difference between the current value of an asset and its value at a time agreed upon in the future.
With a CFD arrangement, differences in the price of a goods or securities are made in settlement through cash payments, rather than the delivery of physical goods or securities.
CFDs provide investors with interests or rights in the underlying asset over which a position is taken.
Under a CFD arrangement, the buyer does not own the underlying assets. Nor is the seller obliged to deliver the underlying securities.

6.

When are you at risk of having your position closed off due to failing to satisfy a margin call?
All the time
When you have no open position(s)
When you have open position(s) and your equity position is below 130% of margin level and falling (and certainly when it is approaching 100%)

7.

How often should I monitor and manage my account for margin call?
As often as possible so long you have open position(s)
As and when you are free
No need to monitor at all

8.

What should you do when your account is at margin call?
Do nothing, but just continue to monitor
Wait until the market rebound then decide what to do next
Make arrangements to immediately top up or add additional margin into your account

9.

What happens when you do not add further margin or top up your account for margin call?
Nothing
The market will rebound and bring Equity back to where it first begins.
Your equity could deteriorate further to stop out level and the company may liquidate all of your positions.

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