Key Information Document CFDs...

1 Siafi Street +357 2503 0299

Porto Bello BLD, 3rd Floor, Office 303 [email protected]

3042 Limassol, Cyprus www.goldenburggroup.eu

Goldenburg Group Limited is licensed and regulated by CySEC, CIF Licence Number 242/14

Key Information Document

CFDs Generic

Purpose

This document provides you with key information about this investment product. It is not

marketing material and it does not constitute an investment advice. The Key Information

Document is required by the law to help you understand the nature, risks, costs,

potential gain and losses of this product and to help you compare it with other products.

Product

Product name: Contracts for Difference (“CFDs”).

Distributor: Offered by Goldenburg Group Limited (the “Company”), a company

registered in Cyprus with registration number HE 328474 and authorised by Cyprus

Securities and Exchange Commission (“CySEC”), with Licence Number 242/14.

Alert

You are about to purchase a product that is not simple and may be difficult to

understand.

What is this product?

Type

A contract for difference (“CFD”) is a leveraged contract, offered by the Company on a

bilateral execution basis. It allows you to obtain an indirect exposure to an underlying

asset such as securities, indices and other asset types. This means you will never own

the underlying asset, but you will make gains or incur losses because of price movements

in the underlying asset.

You have the choice to buy the CFD to benefit from rising prices in the underlying

market; or to sell the CFD to profit from the falling prices. The price of the CFD is derived

from the price of the underlying market price, which may be either the current (“cash”)

price or a forward (“future”) price.

Example

If an investor has opened a buy position and the price of the underlying asset rises, the

value of the CFD will increase - at the end of the contract the Company will pay the

difference between the closing value of the contract and the opening value of the

contract. Conversely, if an investor opened a sell position and the price of the underlying

asset rises, the value of the CFD will be increased - at the end of the contract the

investor will pay the Company the difference between the closing value of the contract

and the opening value of the contract. A CFD referencing the underlying future price

1 Siafi Street +357 2503 0299




works in exactly the same way except that such contracts have a pre-defined expiry date

– a date upon which the contract either automatically closes or must be rolled into the

next period. The leverage embedded within all CFDs has the effect of magnifying both

profits and losses.

Objectives

The aim of the CFD is to allow an investor to take advantage from leveraged exposure to

the movement in the value of the underlying market/asset (up or down), without the

need to buy or sell the underlying market.

The exposure is leveraged because the CFD only requires a small percentage of the

notional value of the contract to be put down in advance as initial margin and is one of

the key features of trading CFDs.

Investor CFD Margin %

Leverage Market Price

Quotation Initial Margin

Direction Market Direction

Profit/Loss

A 1 10% 10:1 5000 10%x5000 x1

500 BUY UP Profit

B 1 10% 10:1 8500 10%x8500 x1

850 SELL UP Loss

C 1 10% 10:1 5500 10%x5500 x1

550 BUY DOWN Loss

*Margin as of 1st August 2018:

5 % for Gold, DAX, S&P 500, Dow Jones

10 % for other Commodities and Other Indices

20 % for Equity CFDs

When free margin drops due to price movement in the opposite direction of the trades,

one must either fund the account in-order to keep margin level above stop out

(automatic system close of open order) level which is at 50% of margin level, or close

position(s) to avoid being stopped out, i.e., automatic close of open positions. Margin Call

notification is communicated through a durable medium when margin level falls below

100%.

In the case of Futures Contract CFD’s, the investor has the option to either close position

on the pre- determined expiry date which is available on the website and communicated

via durable medium or can allow for the symbol to ‘Rollover’ to the new contract.

Depending on the direction of the trade BUY/SELL and the close price of the current

contract to the open price of the new contract the trading account will either receive a

credit or debit to compensate the difference and the system is automated. With CFD’s

there is no delivery of the underlying asset in regard to commodities.

The Company also retains the ability to unilaterally terminate any CFD contract where it

deems that the terms of the contract have been breached.

1 Siafi Street +357 2503 0299




Intended Retail Investor

CFDs are available for investors who have knowledge for the financial markets and they

are expected to have trading experience with leveraged products in the past. It is

anticipated that the investors will have an understanding on how the prices of CFDs are

derived, they key concepts of margin and how leverage works. Moreover, they must

understand that trading leveraged products might cause a loss of their entire invested

capital and they must have the ability to bear losses.

Risk Indicator

The Risk indicator can show you the risk involved in these products compared to other

products. It shows how possible it is that the product movement can lead to financial loss

for the investor.

The Risk indicator has been set to the Highest level. The rate indicates the potential

losses from the product future performance. CFDs are leveraged and risky products that

can cause losses. Losses cannot exceed the amount invested (negative balance),

however you may lose your entire invested capital. There is no capital protection against

market risk, credit risk and/or liquidity risk.

Currency Risk

It is possible to buy or sell CFDs in a different currency from the currency of your

account. The final pay-out that you might receive depends on the exchange rate between

the two currencies.

Performance Scenarios

The below scenarios were demonstrated to provide you how an investment can perform.

You can compare them with other products scenarios in order to identify which product is

more suitable for you. The scenarios presented are an approximation of future

1 Siafi Street +357 2503 0299




performance based on evidence from the past performance on how the value of this

investment differs and are not an exact indicator. The outcome will be based on the

market performance and how long you hold the CFD. The stress scenario indicates the

possible outcome in extreme market circumstances.

Scenario

CFD

Opening price: P 600 Trade Size (per CFD): TS 5 Margin %: M

Contract Size: K 10% 50

Margin Requirement (€): MR= P x TS x M x K 15000 Notional Value of the trade (€): TN=MR/M 150000

Table 1

BUY Performance Scenario

Closing price (inc.spread)

Price change

Profit/Loss SELL Performance Scenario

Closing price (inc. spread

Price change

Profit/Loss

Favourable Moderate Unfavourable

609 604.5 591

1.5% 0.75% -1.5%

€2,250 €1,125 €-2,250


591 595,5 609

1,50% 0,75% -1,50%

€2,250 €1,125 €-2,250

Stress 570 -5% €-7,500 Stress 630 5% €-7,500

What happens if the Company is unable to pay out

The Company segregates all its clients’ funds from its own, in different bank accounts, in

accordance with the Law 87(I)2017 and the related Directive of the Cyprus Securities

and Exchange Commission for the Safeguarding of financial instruments and funds

belonging to clients. Moreover, the Company participates in the Investor Compensation

Funds. The objective of the ICF is to secure claims of the covered Clients against

members of the ICF, through the payment of compensation in cases where the member

concerned is unable to pay out. The total payable compensation to each covered Client of

the Company may not exceed the amount of twenty thousand Euros (EUR 20,000). For

further information, please refer to Cyprus and Securities and Exchange Commission

website www.cysec.gov.cy.

What are the Costs?

One-off Entry or exit Costs

Spread The Difference between the Sell Price and Buy price

Minimum Commission The minimum fee charged for the service carrying out the transaction (it refers to stocks ONLY)

On-going Costs Swaps If you hold a buy or sell position open after the market close, you will be subject to Swap Fee.

How long should I hold it, and can I take money out early?

1 Siafi Street +357 2503 0299




CFDs have no recommended holding period. Provided that the Company is open for

trading you can enter and exit positions if the markets are available, please check all the

financial instruments trading hours.

How can I complain?

You may submit your complaint in writing and addressed to the Compliance Function who

is authorized to handle and investigate complaints that may be submitted to him from

our Clients. You are encouraged to use the Complaints Form and submit it in any of the

following ways:

A. By sending by post or delivering in person the attached Complaints Form at the

following address: 1 Siafi Street, Porto Bello BLD, 3042 Limassol, Cyprus

B. By submitting the Complaints Form electronically at the following email addresses:

[email protected]

C. By Facsimile at +357 2403 0076. If you feel that your complaint has not been

resolved satisfactory, you may file a complaint through Cyprus and Exchange

Commission website. Please read our Complaints Procedure for Clients .

Other Relevant information

We encourage you to read the Terms of Business, Risk Disclosure and Warning Notice

and the Best Interest and Order Execution Policy. You can find the mentioned

documents, under the section Regulation. Such information is also available upon

request.

1 Siafi Street +357 2503 0299





FOREX

Purpose

This document provides you with key information about this investment

product. It is not marketing material and it does not constitute an investment

advice. The Key Information Document is required by the law to help you

understand the nature, risks, costs, potential gain and losses of this product

and to help you compare it with other products.

Product

Product name: Contract for Difference (“CFDs”) on a Currency Pair (“FOREX”)


registered in Cyprus with registration number HE 328474 and authorised by

Cyprus Securities and Exchange Commission, with License Number 242/14.

Alert


understand.

What is this product? Type

FOREX, also known as foreign exchange, FX or currency trading, a contract for

difference (“CFD”) on a currency pair. Forex is a decentralized global market

where all the world’s currencies trade. The FOREX market is the largest, most

liquid market in the world with an average volume exceeding $5 trillion per

year.

Objectives

The objective of trading FOREX is to speculate on price movements (generally

over the short term) in an underlying asset by obtaining an indirect exposure to

the underlying asset. Your return depends on movements in the price of the

underlying asset and the size of your stake. The first currency listed in an FX

pair is called the base currency and the second currency is called the quote

currency (each currency pair is listed as a three- letter code). The price of an

FX pair is how much one unit of the base currency is worth in the quote

currency. If the base currency rises against the quote currency, then a single

unit of the base currency will be worth more units of the quote currency and the

FX pair's price will increase. If it drops, the pair’s price will decrease.

Example

If an investor has opened a buy position (e.g. EUR/USD) and the price of the

underlying asset rises, the value of the CFD will increase - at the end of the

contract the Company will pay the difference between the closing value of the

1 Siafi Street +357 2503 0299




Lower Risk Higher Risk

The risk indicator assumes that you may not be able to buy or sell your CFD at the price

you wanted to due to volatility of the market or you may have to buy or sell your CFD at a

price that significantly impacts how much you get back.

contract and the opening value of the contract. Conversely, if an investor

opened a sell position and the price of the underlying asset rises, the value of

the CFD will be increased - at the end of the contract the investor will pay the

Company the difference between the closing value of the contract and the

opening value of the contract.

Inves

tor

C

F

D

Mar

gin

%

Direct

ion

Mar

ket

mov

e

Profit/L

oss

A 1 3.3

%

BUY UP Profit

B 1 3.3

%

SELL UP Loss

C 1 3.3

%

BUY DOW

N

Loss

*Margin as of 1st August 2018:

3.3 % for Major Currency Pairs: combination of any of the EUR, USD, GBP, CAD, CHF,

JPY

5 % for other Currency Pairs

When free margin drops due to price movement in the opposite direction of the

trades, one must either fund the account in-order to keep margin level above

stop out (automatic system close of open order) level which is at 50% of

margin level, or close position(s) to avoid being stopped out, i.e., automatic

close of open positions. Margin Call notification is communicated through a

durable medium when margin level falls below 100%.


CFDs are available for investors who have knowledge for the financial markets

and they are expected to have trading experience with leveraged products in

the past. It is anticipated that the investors will have an understanding on how

the prices of CFDs are derived, they key concepts of margin and how leverage

works. Moreover, they must understand that trading leveraged products might

cause a loss of their entire invested capital and they must have the ability to

bear losses.

Risk Indicator

1 2 3 4 5 6 7

1 Siafi Street +357 2503 0299




The Risk indicator can show you the risk involved in these products compared

to other products. It shows how possible it is that the product movement can

lead to financial loss for the investor.

The Risk indicator has been set to the Highest level. The rate indicates the

potential losses from the product future performance. CFDs are leveraged and

risky products that can cause losses. Losses cannot exceed the amount

invested (negative balance), however you may lose your entire invested capital.

There is no capital protection against market risk, credit risk and/or liquidity

risk.

Currency Risk

It is possible to buy or sell CFDs in a different currency from the currency of

your account. The final pay-out that you might receive depends on the

exchange rate between the two currencies.


The below scenarios were demonstrated to provide you how an investment can

perform. You can compare them with other products scenarios in order to

identify which product is more suitable for you. The scenarios presented are an

approximation of future performance based on evidence from the past

performance on how the value of this investment differs and are not an exact

indicator. The outcome will be based on the market performance and how long

you hold the CFD. The stress scenario indicates the possible outcome in

extreme market circumstances.

Forex: EUR/USD

Opening Price 1.1975

Trade Size (per CFD): TS 5

Margin %: M 3.3%

Contract Size K 100,000

Margin Requirement (€): MR= TS x M x K 16,500

Notional Value of the trade (€): NV=MR/M 500,000

BUY SELL

Performance

Scenario

Closing

Price

(inclusive

spread)

Change

in price

Profit/Loss Performance

Scenario

Closing

price

(inclusive

spread)

Change

in price

Profit/Loss

Favourable

Moderate

Unfavourable

1.2154

1.2064

1.1796

1.5 %

0.75 %

-1.5 %

USD 8,950

USD 4,450

USD -8,950

Favourable

Moderate

Unfavourable

1.1796

1.2064

1.2154

1.5 %

0.75 %

-1.5 %

USD 8,950

USD 4,450

USD -8,950

Stress 1.1377 -5 % USD -29,900 Stress 1.2573 -5 % USD -29,900


1 Siafi Street +357 2503 0299




The Company segregates all its clients’ funds from its own, in different bank

accounts, in accordance with the Law 87(I)2017 and the related Directive of

the Cyprus Securities and Exchange Commission for the Safeguarding of

financial instruments and funds belonging to clients. Moreover, the Company

participates in the Investor Compensation Funds. The objective of the ICF is

to secure claims of the covered Clients against members of the ICF, through

the payment of compensation in cases where the member concerned is

unable to pay out. The total payable compensation to each covered Client of

the Company may not exceed the amount of twenty thousand Euros (EUR

20,000). For further information, please refer to Cyprus and Securities and

Exchange Commission website www.cysec.gov.cy.

What are the costs?

One-off Entry or

exit Costs


Minimum commission The minimum fee charged for the service carrying out

the transaction (it refers to stocks ONLY)

Ongoing costs Swaps If you hold a buy or sell position open after the market

close, you will be subject to Swap Fee.


CFDs have no recommended holding period. Provided that the Company is

open for trading you can enter and exit positions if the markets are

available, please check all the financial instruments trading hours.

How can I complain?

You may submit your complaint in writing and addressed to the Compliance

Function who is authorized to handle and investigate complaints that may be

submitted to him from our Clients. You are encouraged to use the

Complaints Form and submit it in any of the following ways:

A. By sending by post or delivering in person the attached Complaints Form

at the following address: 1 Siafi Street, Porto Bello BLD, 3042 Limassol,

Cyprus

B. By submitting the Complaints Form electronically at the following email

addresses: [email protected] and

C. By Facsimile at +357 2403 0076. If you feel that your complaint has not

been resolved satisfactory, you may file a complaint through Cyprus and

Exchange Commission website. Please read our Complaints Procedure for

Clients.


http://www.cysec.gov.cy/

1 Siafi Street +357 2503 0299




We encourage you to read the Terms of Business, Risk Disclosure and

Warning Notice and the Best Interest and Order Execution Policy. You can

find the mentioned documents, under the section Regulation. Such

information is also available upon request.

1 Siafi Street +357 2503 0299





Physical Shares

Purpose

This document provides you with key information about this investment product. It is not

marketing material and it does not constitute an investment advice. The Key Information

Document is required by the law to help you understand the nature, risks, costs,

potential gain and losses of this product and to help you compare it with other products.

Product

Product name: Physical Shares


registered in Cyprus with registration number HE 328474 and authorised by Cyprus

Securities and Exchange Commission (“CySEC”), with Licence Number 242/14.

Alert


understand.

What is this product?

Type

A physical share is not a leveraged product, offered by the Company on a bilateral

execution basis. It allows you to obtain a direct exposure to the physical share and so to

become a shareholder of the particular Company whose share you have bought. You can

only choose to buy the physical share to benefit from rising prices on the stock exchange.

The price of the physical share is copying the price of the share on the stock exchange.

Example

If an investor has opened a buy position and the price of the share on the stock

exchange rises, the value of the physical share will increase - at the time of closing the

position the Company will pay the difference between the closing price and the opening

price. Conversely, if the price of the share on the stock exchange declines, the value of

the physical share will decrease - at the time of closing the position the investor will pay

the Company the difference between the closing price and the opening price.

Objectives

The aim of the physical share is to allow an investor to become a shareholder of

particular Company without the need to be official participant of the stock exchange on

which the Company is being quoted.

1 Siafi Street +357 2503 0299




Investor CFD Margin %

Leverage Market Price

Quotation Initial Margin

Direction Market Direction

Profit/Loss

A 1 100% 1:1 5000 100%x5000 x1

5000 BUY UP Profit

B 1 100% 1:1 5500 100%x5500 x1

5500 BUY DOWN Loss

When free margin drops due to price movement in the opposite direction of the trades,

one must either fund the account in-order to keep margin level above stop out

(automatic system close of open order) level which is at 50% of margin level, or close

position(s) to avoid being stopped out, i.e., automatic close of open positions. Margin Call

notification is communicated through a durable medium when margin level falls below

100 %.


Physical shares are available for investors who have less knowledge for the financial

markets and they are expected to have less trading experience with financial markets. It

is anticipated that the investors will have an understanding on how the moving price of

the physical share on the stock exchange affects the open positions in their account.

Moreover, they must understand that trading physical shares might cause a loss of

significant part of invested capital and they must have the ability to bear losses.

Risk Indicator

The Risk indicator can show you the risk involved in these products compared to other

products. It shows how possible it is that the product movement can lead to financial loss

for the investor.

The Risk indicator has been set to the Lower level. The rate indicates the potential losses

from the product future performance. The risk indicator assumes that you may not be

1 Siafi Street +357 2503 0299




able to buy or sell your physical share at the price you wanted to due to volatility of the

market or you may have to buy or sell your physical share at a price that significantly

impacts how much you get back.

Currency Risk

It is possible to buy or sell physical share in a different currency from the currency of

your account. The final pay-out that you might receive depends on the exchange rate

between the two currencies.


The below scenarios were demonstrated to provide you how an investment can perform.

You can compare them with other products scenarios in order to identify which product is

more suitable for you. The scenarios presented are an approximation of future

performance based on evidence from the past performance on how the value of this

investment differs and are not an exact indicator. The outcome will be based on the

market performance and how long you hold the physical share. The stress scenario

indicates the possible outcome in extreme market circumstances.

Scenario

Phyisical Share

Opening price: P 100 Trade Size (per CFD): TS 5 Margin %: M

Contract Size: K 100% 1

Margin Requirement (€): MR= P x TS x M x K 500 Notional Value of the trade (€): TN=MR/M 500

Table 1

BUY Performance Scenario

Closing price (inc.spread)

Price change

Profit/Loss


101.50 100.75 98.50

1.5% 0.75% -1.5%

€7.50 €3.75 €-7.50

Stress 95 -5% €-25


The Company segregates all its clients’ funds from its own, in different bank accounts, in

accordance with the Law 87(I)2017 and the related Directive of the Cyprus Securities

and Exchange Commission for the Safeguarding of financial instruments and funds

belonging to clients. Moreover, the Company participates in the Investor Compensation

Funds. The objective of the ICF is to secure claims of the covered Clients against

members of the ICF, through the payment of compensation in cases where the member

1 Siafi Street +357 2503 0299




concerned is unable to pay out. The total payable compensation to each covered Client of

the Company may not exceed the amount of twenty thousand Euros (EUR 20,000). For

further information, please refer to Cyprus and Securities and Exchange Commission

website www.cysec.gov.cy.

What are the Costs?

One-off Entry or exit Costs


Minimum Commission The minimum fee charged for the service carrying out the transaction (it refers to stocks ONLY)

On-going Costs Swaps If you hold a buy or sell position open after the market close, you will be subject to Swap Fee.


CFDs have no recommended holding period. Provided that the Company is open for

trading you can enter and exit positions if the markets are available, please check all the

financial instruments trading hours.

How can I complain?

You may submit your complaint in writing and addressed to the Compliance Function who

is authorized to handle and investigate complaints that may be submitted to him from

our Clients. You are encouraged to use the Complaints Form and submit it in any of the

following ways:

A. By sending by post or delivering in person the attached Complaints Form at the

following address: 1 Siafi Street, Porto Bello BLD, 3042 Limassol, Cyprus

B. By submitting the Complaints Form electronically at the following email addresses:

[email protected] and

C. By Facsimile at +357 2403 0076. If you feel that your complaint has not been

resolved satisfactory, you may file a complaint through Cyprus and Exchange

Commission website. Please read our Complaints Procedure for Clients .


We encourage you to read the Terms of Business, Risk Disclosure and Warning Notice

and the Best Interest and Order Execution Policy. You can find the mentioned

documents, under the section Regulation. Such information is also available upon

request.

Key Information Document CFDs...

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