Spread Co is authorised and regulated by The Financial Services Authority (FSA), register number 446677. This notice is provided to you in compliance with FSA requirements because you are proposing to undertake dealings in Contracts for Difference (CFDs) and / or Spread Bets. This notice cannot and does not disclose or explain all of the risks and other significant aspects involved in dealing in CFDs and Spread Betting. Engaging in these types of transactions can carry a high risk. You should not engage in this form of trading unless you understand the nature of the transaction you are entering into and the true extent of your exposure to the risk of loss. Your profit or loss will vary according to the extent of the fluctuations in the price of the "underlying markets".

For many members of the public, these transactions are not suitable; you should, therefore, consider carefully whether they are suitable for you in the light of your circumstances and financial resources. In considering whether to engage in this form of trading, you should be aware of the following:

• The high degree of "gearing" or "leverage" is a particular feature of this type of transaction. This stems from the margining system applicable to such trades which generally involves a comparatively modest deposit or margin in terms of the overall contract value, so that a relatively small movement in the underlying market can have a disproportionately dramatic effect on your trade. If the underlying market movement is in your favour, you may achieve a good profit, but an equally small adverse market movement can not only quickly result in the loss of your entire deposit, but may also expose you to a large additional loss unless you enter a limited liability contract (place a guaranteed stop loss) with Spread Co, where Spread Co offers such a facility.
• Foreign markets will involve different risks from UK markets. In some cases the risks will be greater. The potential for profit or loss from transactions on foreign markets or in foreign currency denominated markets may be affected by fluctuations in foreign exchange rates.
• You may be called upon to deposit substantial additional margin, at short notice, to maintain your trade. If you do not provide such additional funds within the time required, your trade may be closed at a loss and you will be liable for any resulting deficit.
• CFD and Spread Bet trades will not be undertaken on a recognised or designated investment exchange. During normal market hours and outside normal market hours, Spread Co will execute CFD and Spread Bet orders and trades at Spread Co's price. Spread Co acts as a "market maker" in these CFDs and Spread Bets in and out of market hours (see Spread Co's Terms of Business for market hours.) Closing trades will be traded at the price dictated by the spread quoted at the time of closing, irrespective of the spread at the time of the opening trade, which may be larger or smaller. No guarantee is given as to the spread at the time of closing. All CFD and Spread Bets opened with Spread Co must be closed with Spread Co and cannot be closed with any other entity.