Frequently Asked Questions

1 ABERDEEN ASSET MANAGEMENT PLC
2 ADMIRAL GROUP PLC
3 ALLIANCE & LEICESTER PLC
4 ALLIANCE TRUST PLC
5 ARBUTHNOT BANKING GROUP PLC
6 AVIVA PLC
7 BARCLAYS PLC
8 BRADFORD & BINGLEY PLC
9 BRIT INSURANCE HOLDINGS PLC
10 CHESNARA PLC
11 CLOSE BROTHERS GROUP PLC
12 EUROPEAN ISLAMIC INVESTMENT BANK PL
13 F&C ASSET MANAGEMENT PLC
14 FRIENDS PROVIDENT PLC
15 HBOS PLC
16 HIGHWAY INSURANCE GROUP PLC
17 HSBC HOLDINGS PLC
18 INVESTEC PLC
19 ISLAMIC BANK OF BRITAIN PLC
20 JUST RETIREMENT HOLDINGS PLC
21 LEGAL & GENERAL GROUP PLC
22 LLOYDS TSB GROUP PLC
23 LONDON SCOTTISH BANK PLC
24 NOVAE GROUP PLC
25 OLD MUTUAL PLC
26 PRUDENTIAL PLC
27 RATHBONE BROTHERS PLC
28 ROYAL BANK OF SCOTLAND GROUP PLC
29 RSA INSURANCE GROUP PLC
30 SCHRODERS PLC
31 ST JAMES'S PLACE PLC
32 STANDARD CHARTERED PLC
33 STANDARD LIFE PLC
34 TAWA PLC

These markets will not be available online and clients are urged to call ETX Capital on 0207 3921430 to trade.

It is the responsibility of clients to ensure when giving a sell order that this is a closing trade.

This action is in response to the following notice from the FSA on the 18th September 2008.

FSA/PN/102/2008
18 September 2008

The Board of the Financial Services Authority (FSA) today (Thursday 18 September) agreed to introduce new provisions to the Code of Market Conduct to prohibit the active creation or increase of net short positions in publicly quoted financial companies from midnight tonight.

In addition, the FSA will require from Tuesday 23 September daily disclosure of all net short positions in excess of 0.25 per cent of the ordinary share capital of the relevant companies held at market close on the previous working day. Disclosure of such positions held at close on Friday 19 September will also be required on Tuesday 23 September.

The FSA stands ready to extend this approach to other sectors if it judges it to be necessary.

These provisions will remain in force until 16 January 2009, although they will be reviewed after 30 days. A comprehensive review of the rules on short selling will be published in January.

Hector Sants, chief executive of the FSA, said:

"While we still regard short-selling as a legitimate investment technique in normal market conditions, the current extreme circumstances have given rise to disorderly markets. As a result, we have taken this decisive action, after careful consideration, to protect the fundamental integrity and quality of markets and to guard against further instability in the financial sector."

The detailed changes to the Code of Market Conduct, and a schedule of the companies whose securities are covered by them, will be published before the market opens tomorrow (Friday 19 September).

We thank you for your understanding.

ETX Capital

Financial spread betting is an efficient, tax-free alternative to trading with a traditional broker. It allows you to speculate on share price movements, while avoiding any brokerage fees or commissions.

Financial spread betting is based on a simple premise. If you think that a certain financial market or product will rise in value, then you buy the market/product. If you think that a certain financial market or product will fall in value, then you sell it.

Buying a rising financial market or product: After buying a financial market or product that you believe will rise in value, then if your prediction is correct, you can sell the market or product for a profit. (If you are incorrect and the value falls, you make a loss.)

Selling a falling financial market or product: After selling a financial market or product that you believe will fall in value, then if your prediction is correct, you can buy the market or product back at a lower price, for a profit. (If you are incorrect and the value rises, you make a loss.)

ETX Capital quotes a spread around the live, underlying market price and you can spread bet on whether this market value will rise or fall. When financial spread betting please remember that you own the “price” of the share and not the actual underlying share.

The spread is the difference between the buying and selling price of a financial market or product. It represents the market-maker's potential profit or loss on a transaction.

For example, say the FTSE Daily Cash has a price of 5894-5896 points. That means that you could sell for 5894 points and buy for 5896 points. The spread would be 2 points.

If you believe that the FTSE Daily Cash will rise in value, then you request a price via the ETX Capital website www.etxcapital.co.uk. You will see the spread, e.g. 5894-5896 points, then you buy at 5896 for an amount (the minimum amount with ETX Capital is £1) per point movement*. If the price moves up to 6014-6016 and you sell at 6014, you would realise a point profit of 6014 (the price you sell for) minus 5896 (price you bought for) = 118 points. As you have placed a spread bet of £1 per point, you would make a profit of £118 (£1 multiplied by 1178). Obviously, had the market fallen in value you would have incurred a loss (opening price - closing price x stake).

* You can decide on the amount you spread bet per point, based upon the bet size range currently offered by ETX Capital, and the funds you have available to speculate with in your account.

To limit your risk, ETX Capital insists on mandatory stop losses when you open a new position. This will help protect you if the price moves against you. In some cases however, due to market volatility it may not be possible to stop you out at your specified level. If this should happen then you will be stopped out at the next available price which may be outside of your stop level.

Financial spread betting offers significant advantages over more traditional forms of trading

Financial Spread Betting is Tax free*

Any profits or losses you make are free from UK capital gains and income tax*.

Financial Spread Betting offers more flexibility.

Financial Spread Betting with ETX Capital offers you the flexibility to spread bet on a wide range of financial markets or products on one platform using one currency — GBP Sterling.

Ability to profit from Financial Spread Betting when markets fall as well as rise.

Financial spread betting allows you to go short (sell) in order to make a profit from a falling market by buying again later or at a lower price. In volatile market conditions, the ability to make a profit on both up and down swings can prove lucrative.

Financial Spread Betting offers the opportunity to make geared spread bets. For example, a deposit of £100 will allow you to have an exposure of £1,000 worth of shares. Gearing therefore maximises any potential profits, but carries a high degree of risk. Please remember that the markets can move against you as well as in your favour, you should only speculate with your money if you can afford to lose. Please ensure that you fully understand the risks involved with Financial Spread Betting.

ETX Capital Financial Spread Betting accounts, can be opened with a minimum deposit of only £100. The minimum deal size is £1 per tic.

Financial Spread Betting with ETX Capital is free from commissions and fees, including stamp duty*

*Tax law can be changed or may differ if you pay tax in a jurisdiction outside the UK

Do you trade shares? Try financial spread betting

• No CGT tax on profits*
• No stamp duty
• Easy on your capital - instead of paying the full value of your share position, you are only required to pay a percentage deposit. This is commonly known as 'gearing', and margin requirement can be as little as 5% of the total contract value.
• Go 'short' to take advantage of bear markets - you can place a 'sell' bet on the price of a certain share falling.
• Hedge an existing share portfolio

Financial Spread Betting with ETX Capital offers you the opportunity to spread bet on the following:

UK shares - FTSE 100, FTSE 250, and other UK companies depending on its size and liquidity.

American shares - we quote around 50 US shares, including the 30 Dow Jones stocks and a large number of NASDAQ 100 and S&P 500 shares.

European shares - we quote the top stocks from Germany, Holland, Italy, Spain, France and Switzerland

If you have any questions about Financial Spread Betting with ETX Capital please contact us:

Phone
Customer Service: +44 (0) 20 7392 1494
Dealing Queries: +44 (0) 20 7392 1430
Marketing: +44 (0) 20 7392 1482

Email
If your question is about your account, or about depositing/withdrawing money, please send an e-mail to help@etxcapital.co.uk.
If your question is about trading or about a specific trade (please include order number), please send an e-mail to customerservice@etxcapital.co.uk.
If at any time you feel that you are not getting the answers you need please send an e-mail to csmanager@etxcapital.co.uk.

Post
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