Alfa Capital Markets Ltd complies with all requirements of MiFID and local legislations relating to risk management. In regards to the obligation to inform clients about the risks associated with various financial instruments, our risk management department has created a document identifying risks that relate to specific financial products. This document is distributed to clients during the set-up process. A summary table describing the risks associated with each financial instrument can be found in this section. Upon request, we can provide you with the consolidated report. Kindly note that this summary does not cover all financial instruments and is intended to be used only for informational purposes.
Summary table of financial instruments (not exhaustive) traded by Alfa Capital Markets Ltd with their associated risks
|Financial Instruments||Financial commitments and other additional obligations||Volatility||Leverage (and its effects)||OTC product/ exchange traded||Complexity level||Credit risk||Liquidity risk/ limitations on available market||Currency risk||Interest rate risk||Market risk||Risk related to external factors|
|Equity: developed markets||possible||H||N/A||Both||1||L to H||L to H||L||L||H||H|
|Equity: ADR, GDR||possible||H||N/A||Both||1||L to H||L to H||L||L||H||H|
|Equity: emerging markets||possible||H||N/A||Both||1||L to H||L to H||L||L||H||H|
|Developed markets sovereign bonds||possible||L to H||N/A||Both||1||L||L||L||M||M||M|
|Emerging markets sovereign bonds||possible||M to H||N/A||Both||1||M to H||M||M||M||M||M|
|Municipal bonds||possible||L to M||N/A||Both||1||L to H||L to H||L||M||M||M|
|Corporate bonds||possible||L to M||N/A||Both||1||L to H||M||M||M||M||M|
|Equity option||possible||L to H||M||Both||2||L to H||M to H||L||L||L to H||H|
|Commodities option||possible||L to H||M||Both||2||L to H||M to H||L||L||L to H||H|
|Currency option||possible||L to H||M||Both||2||L to H||L||H||H||L to H||H|
|Index option||possible||L to H||M||Both||2||L to H||L to H||L||L||L to H||H|
|FRA (Forward Rate Agreement)||possible||H||H||OTC||2||L to H||L||L||H||N/A||M|
|Currency Forward||Yes||M to H||M to H||OTC||2||L to M||M||H||H||H||M|
|Equity Forward||Yes||M to H||M to H||OTC||2||L to H||H||L||H||H||H|
|Bond Forward||Yes||M to H||M to H||OTC||2||L to H||H||L||H||H||H|
Futures (on index, precious metals, commodities, fuel etc.)
|Yes||H||H||Exchange||2||L||L to H||L to H||L to H||H||H|
|Credit Default Swap||possible||M||M||OTC||2||L to H||M to H||N/A||L||M||H|
|Total return swap||possible||M||M||OTC||2||L to H||M to H||N/A||M||M||H|
|Cross currency Swap||Possible||H||M||OTC||2||L to H||M to H||H||H||H||M|
|Repos on Equities||Yes||M to H||M to H||OTC||2||L to H||H||L||H||H||H|
|Repos on Bonds||Yes||M to H||M to H||OTC||2||L to H||H||L||H||H||H|
|Structured Notes||No||L to H||L to H||OTC||2||L to H||H||N/A||L to H||L to H||L to H|
|Promissory Notes||No||L to H||L to H||OTC||2||L to H||H||N/A||L to H||L to H||L to H|
Investing in financial instruments is not suitable for all investors; it contains significant risks that might put your capital at risk. Make sure you fully understand the risks involved and ensure that they are in line with your own risk appetite and economic profile.
Do not use money you cannot afford to lose. When trading in margin, you could lose much more than your investment amount.
You should only consider trading in complex products such as derivatives, repurchase transactions, structured products etc. if:
- you have extensive experience of trading in such financial instruments and in volatile markets;
- you fully understand how they operate, including all the risks and costs involved;
- you understand that your positions can be closed in case you fail to cover your margin call requirements under margin trading;
- you have sufficient time to manage your investment on an active basis, especially in cases where you have received personal advice in relation to the investment.
The information contained in this table is solely for informational purposes only and it is not and should not be construed as an offer or a solicitation of an offer, to buy or sell any securities and other financial instruments and cannot be relied upon as a representation that any particular transaction necessarily could have been or can be effected at the stated price.
The Company's full description of risks document will be provided to you during your on-boarding process. You reserve the right to request the said document any time before or after your registration. For such requests, you may contact our customer support at firstname.lastname@example.org.