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P R O D U C T D I S C L O S U R E S T A T E M E N T
B I N A R Y O P T I O N S
first choice for forex GO MARKETS
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | i
TABLE OF CONTENTS
1. IMPORTANT INFORMATION .................................................................................................................. 1
NOTES AND DISCLAIMER ...................................................................................................................................... 1
HOW TO CONTACT US .......................................................................................................................................... 1
ELECTRONIC VERSION OF THE PDS ...................................................................................................................... 1
UPDATED INFORMATION ...................................................................................................................................... 1
TREATMENT OF OVERSEAS APPLICANTS ............................................................................................................. 1
RESTRICTIONS ON THE DISTRIBUTION OF DOCUMENTATION .......................................................................... 1
APPLICATIONS ....................................................................................................................................................... 1
PRODUCTS COVERED IN THIS PDS ...................................................................................................................... 2
CALL RECORDINGS ............................................................................................................................................... 2
2. TERMS AND CONDITIONS .................................................................................................................... 2
3. ADVICE ................................................................................................................................................... 2
4. SUMMARY TABLE ................................................................................................................................... 2
5. KEY FEATURES OF GO MARKETS’ BINARY OPTIONS ........................................................................... 4
BINARY OPTIONS ................................................................................................................................................. 4
CALCULATING PROFIT AND LOSS ........................................................................................................................ 5
6. BENEFITS OF TRADING GO MARKETS’ BINARY OPTIONS ....................................................................5
7. RISKS OF TRADING BINARY OPTIONS ................................................................................................. 6
DERIVATIVES RISK ................................................................................................................................................ 6
MARKET VOLATILITY............................................................................................................................................. 6
FOREIGN EXCHANGE RISK ................................................................................................................................... 6
GO MARKETS’ RISK/COUNTERPARTY RISK.......................................................................................................... 7
DEPOSIT ................................................................................................................................................................ 7
CLIENT’S MONEY .................................................................................................................................................. 7
CREDIT RISK .......................................................................................................................................................... 7
POSSIBLE ILLIQUIDITY OF THE MARKET .............................................................................................................. 8
TERMINATION OF BINARY OPTIONS BEFORE THE EXPIRY TIME ........................................................................ 8
OPERATIONAL RISKS ............................................................................................................................................ 8
CONSEQUENCES OF YOUR DEFAULT .................................................................................................................. 8
OUR RIGHT TO EXERCISE CERTAIN DISCRETIONS .............................................................................................. 8
INFORMATION WE MAKE AVAILABLE .................................................................................................................. 8
EXECUTION RISK .................................................................................................................................................. 8
ELECTRONIC TRADING PLATFORM RISK ............................................................................................................. 9
REGULATORY RISK................................................................................................................................................ 9
NO COOLING OFF ................................................................................................................................................ 9
SUPERANNUATION FUNDS ................................................................................................................................. 9
8. BINARY OPTION’S TRANSACTION EXAMPLES ..................................................................................... 9
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | ii
CALL BINARY OPTIONS ........................................................................................................................................ 9
PUT BINARY OPTIONS .......................................................................................................................................... 9
9. ASIC REGULATORY GUIDE 227 DISCLOSURE BENCHMARKS ............................................................. 10
10. OPENING AN ACCOUNT .................................................................................................................... 13
11. THE BINARY OPTION’S ACCOUNT ..................................................................................................... 14
WHAT IS A BINARY OPTION’S ACCOUNT? ........................................................................................................ 14
HOW ARE THE FUNDS YOU DEPOSIT WITH US HELD? ..................................................................................... 14
HOW DO YOU GET FUNDS IN AND OUT OF YOUR BINARY OPTION’S ACCOUNT? ....................................... 14
DO YOU GET INTEREST ON YOUR BINARY OPTION’S ACCOUNT BALANCE? .................................................. 15
12. OPERATING AN ACCOUNT ................................................................................................................ 15
HOW DO YOU OPEN A BINARY OPTION’S POSITION? ..................................................................................... 15
ACCEPTANCE OF ORDERS ................................................................................................................................... 15
HOW DO YOU CLOSE OUT A BINARY OPTION’S POSITION? ............................................................................ 15
GO MARKETS’ TRADER PLATFORMS ................................................................................................................... 15
13. DEPOSIT REQUIREMENTS ................................................................................................................... 16
WHAT IS DEPOSIT? ..............................................................................................................................................16
INITIAL DEPOSIT ..................................................................................................................................................16
YOU ARE RESPONSIBLE FOR SATISFYING THE DEPOSIT REQUIREMENTS ........................................................16
14. FEES AND OTHER COSTS .................................................................................................................... 16
ASSOCIATED FEES ................................................................................................................................................16
CURRENCY CONVERSION CALCULATION FEE ...................................................................................................16
DEPOSIT ............................................................................................................................................................... 17
INTEREST ON ACCOUNT BALANCES .................................................................................................................. 17
INTERNATIONAL TRANSFER FEES ....................................................................................................................... 17
OTHER FEES AND COSTS ..................................................................................................................................... 17
15. TAXATION ........................................................................................................................................... 17
TAXATION ADVICE .............................................................................................................................................. 17
16. DISCLOSURE OF INTEREST ................................................................................................................. 18
17. PRIVACY POLICY ................................................................................................................................. 18
18. DISPUTE RESOLUTION ....................................................................................................................... 18
FINANCIAL OMBUDSMAN SERVICE CONTACT DETAILS (“FOS”) ..................................................................19
19. ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING .......................................... 19
20. CLIENT AGREEMENT ........................................................................................................................... 19
GLOSSARY................................................................................................................................................ 20
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 1
1. IMPORTANT INFORMATION
NOTES AND DISCLAIMER
Glossary
Product Disclosure Statement PDS
GO Markets Pty Ltd ABN 85 081 864 039 GO Markets
GO we us
general information
Binary Option
Australian Securities and Investments Commission
ASIC
HOW TO CONTACT US
GO Markets Pty Ltd
254963/85 081 864 039
Level 50
120 Collins Street
Melbourne
VIC 3000
+61 3 8566 7680
+61 3 9225 5067
www.gomarketsaus.com
ELECTRONIC VERSION OF THE PDS
www.gomarketsaus.com
Financial Services Guide FSG
UPDATED INFORMATION
www.gomarketsaus.com
TREATMENT OF OVERSEAS APPLICANTS
RESTRICTIONS ON THE DISTRIBUTION OF
DOCUMENTATION
APPLICATIONS
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 2
PRODUCTS COVERED IN THIS PDS
over-the-counter
OTC
Yes No
Yes
in-the-money No
out-of-the-money
CALL RECORDINGS
2. TERMS AND CONDITIONS
Financial Services Guide
FSG
Client Agreement
toxic trading
3. ADVICE
GENERAL ADVICE
4. SUMMARY TABLE
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 3
ISSUE SUMMARY
GO Markets
Binary Options over-the-counter OTC
Yes No
Digital Option All-or-Nothing Option
Derivative
Position
Over-the-Counter OTC
+61 8566 7680
www.gomarketsaus.com
AUD$500
ONLY
Power of Attorney
Call
Strike Price Expiry Time HIGHER
Expiry Price
up
Put
Strike Price Expiry Time LOWER Expiry
Price
down
Total Equity
Free Equity LESS
Deposit
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 4
Initial Deposit
Requirement
Total
Deposit Requirement
Cleared Funds
DOES NOT
Section
6
Section 7
Financial Ombudsman Scheme FOS
Section 18
Section 15
GO Markets’ Trading Hours
GO Markets’ Office Hours
+61 3 8566 7680
www.gomarketsaus.com
Section 14
5. KEY FEATURES OF GO MARKETS’
BINARY OPTIONS
BINARY OPTIONS
Binary Options over-the-counter OTC
Yes No
Derivative
tradable
Call
Strike
Price
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 5
Put
Strike Price
American
European
American Options
Expiry Time
European Options ONLY Expiry Time
Speculation
Hedging
Section 8
CALCULATING PROFIT AND LOSS
Fixed Nothing at All
Investment
Payout
Payout
Specific Percentage
payout
TIME EXPIRY PAYOUT RATE
6. BENEFITS OF TRADING GO
MARKETS’ BINARY OPTIONS
1. Limitation of Loss
2. Hedging
3. Speculation
Long Short
Call Binary Option
Put Binary Option
4. Trade in Small Amounts
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 6
5. Market Positions and Strategies
6. Profit Potential in Flat Markets
7. Access to Markets in Real Time
8. Real-time Streaming Quotes and Tradable Prices
www.gomarketsaus.com
7. RISKS OF TRADING BINARY
OPTIONS
DOES NOT ALL
DERIVATIVES RISK
MARKET VOLATILITY
All or Nothing
FOREIGN EXCHANGE RISK
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 7
Unrealised Profit/Loss
GO MARKETS’ RISK/COUNTERPARTY RISK
Market Maker
Credit
Counterparty
Australian Financial Services
Licence AFSL
free-of-charge
DEPOSIT
CLIENT’S MONEY
CREDIT RISK
over-the-counter OTC
unsecured obligations
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 8
POSSIBLE ILLIQUIDITY OF THE MARKET
Liquid
Illiquid
TERMINATION OF BINARY OPTIONS BEFORE
THE EXPIRY TIME
closed out sold
OPERATIONAL RISKS
CONSEQUENCES OF YOUR DEFAULT
OUR RIGHT TO EXERCISE CERTAIN
DISCRETIONS
>
>
INFORMATION WE MAKE AVAILABLE
EXECUTION RISK
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 9
ELECTRONIC TRADING PLATFORM RISK
REGULATORY RISK
NO COOLING OFF
SUPERANNUATION FUNDS
8. BINARY OPTION’S TRANSACTION
EXAMPLES
The examples below are for illustrative purposes only.
The rates and figures quoted are hypothetical and do not
represent actual rates or figures.
CALL BINARY OPTIONS
Up
USD
$43.75 ($25 plus (75% of $25))
draw
PUT BINARY OPTIONS
Down
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 10
USD
$43.75 ($25 plus (75% of $25))
draw
9. ASIC REGULATORY GUIDE 227
DISCLOSURE BENCHMARKS
if not,
why not
BENCHMARK
DESCRIPTION
HOW DOES GO MARKETS MEET THIS
BENCHMARK? RELEVANT SECTIONS IN THE PDS
Client
Qualification
Section 2
Section 3
Section 5
Section 20
Opening
Collateral
Cleared Funds
Section 2
Section 11
Section 12
Section 13
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 11
Cleared Funds
Counterparty
Risk – Hedging
straight through Straight through
Processing STP
hedged
Hedging/Hedged
Liquidity Partner
Client Risk
Counterparty Risk
Section 7
Counterparty
Risk – Financial
Resources
RG166
Australian Financial Services Licence
AFSL
Compliance Officer
ASIC RG166
Section 7
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 12
Chief Financial Officer
CFO
Client Money
National Australia Bank NAB
Automated Stop
Out System
Section 7
Section 7
Section 11
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 13
Suspended or
Halted
Underlying
Assets
Section 2
Section 12
Section 20
Margin Calls
There are NO margin calls associated with Binary
Options.
Section 6
10. OPENING AN ACCOUNT
Section 20Cleared Funds
Cleared Funds
AUSTRAC
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 14
11. THE BINARY OPTION’S ACCOUNT
WHAT IS A BINARY OPTION’S ACCOUNT?
Section 7
Section 9 Section 10
Free Equity Deposit
HOW ARE THE FUNDS YOU DEPOSIT WITH US
HELD?
>
>
>
>
>
>
>
>
>
>
>
>
HOW DO YOU GET FUNDS IN AND OUT OF
YOUR BINARY OPTION’S ACCOUNT?
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 15
Free Equity
PLUS MINUS LESS
EXAMPLE – Free Equity
DO YOU GET INTEREST ON YOUR BINARY
OPTION’S ACCOUNT BALANCE?
DO NOT
12. OPERATING AN ACCOUNT
HOW DO YOU OPEN A BINARY OPTION’S
POSITION?
long short
ACCEPTANCE OF ORDERS
his summary is NOT a
confirmation
Trades Booked
Trades Booked IS
standing facility
Trades Booked
HOW DO YOU CLOSE OUT A BINARY
OPTION’S POSITION?
Section 7 Section 8
GO MARKETS’ TRADER PLATFORMS
Real time prices
Section 12
Real time news feeds
Technical analysis
Account summaries
Support
A secure website
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 16
13. DEPOSIT REQUIREMENTS
WHAT IS DEPOSIT?
Deposit Requirement
Section 11
www.gomarketsaus.com
INITIAL DEPOSIT
Initial Deposit
Initial Deposit
YOU ARE RESPONSIBLE FOR SATISFYING THE
DEPOSIT REQUIREMENTS
There are NO margin calls for Binary Options.
14. FEES AND OTHER COSTS
ASSOCIATED FEES
out of the
money
out of the money
Call
Put
CURRENCY CONVERSION CALCULATION FEE
EXAMPLE – Conversion Calculation Fee
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 17
DEPOSIT
Section
13
INTEREST ON ACCOUNT BALANCES
INTERNATIONAL TRANSFER FEES
Depositing Funds
Withdrawing Funds
OTHER FEES AND COSTS
Credit Card payments
PayPal payments
Telegraphic Bank Transfer payments
15. TAXATION
TAXATION ADVICE
Please note that GO Markets DOES NOT provide any
taxation advice.
GENERAL
GENERAL
Profit or Loss
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 18
Taxation of Financial Arrangements
Taxation of Financial
Arrangements TOFA
Capital Gains Tax
Capital Gains Tax
CGT
Goods and Services Tax (“GST”)
financial
supplies
16. DISCLOSURE OF INTEREST
17. PRIVACY POLICY
NOT
www.gomarketsaus.com
18. DISPUTE RESOLUTION
GO Markets’ Support Team
Account Manager
Section 1
Financial Ombudsman
Service FOS
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 19
Financial
Ombudsman Service FOS
10822
FINANCIAL OMBUDSMAN SERVICE CONTACT
DETAILS (“FOS”)
G.P.O. Box 3
Melbourne
VIC 3001
1300 780 808
www.fos.org.au
Australian Securities and
Investments Commission ASIC 1300 300 630
Section 1
GO Markets Pty Ltd
85 081 864 039/254963
Level 50
120 Collins Street
Melbourne
VIC 3000
(03) 8566 7680
(03) 9225 5067
www.gomarketsaus.com
19. ANTI-MONEY LAUNDERING AND
COUNTER-TERRORISM FINANCING
>
illegal activities
>
DOES NOT
20. CLIENT AGREEMENT
discrepancies
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 20
GLOSSARY
Please find the terms used throughout the PDS below.
FEATURE DESCRIPTION
‘Account’
‘AEST’ or ‘AEDT’
‘AFSL’
‘ASIC’
‘Binary Option’
‘Call Binary Option’ Put Binary Option
‘Cleared Funds’
‘Client Agreement’
‘Corporations Act’
‘Deal’ or ‘Dealing’
‘Deposit’ Section 13
‘Derivative’
‘European Style Option’
‘Expiry Price’
‘Expiry Time’
‘Free Equity’
‘Free Equity’
‘GO Markets’, ‘GO’, ‘us’ or ‘we’
‘Hedging’
‘In the Money’
‘Margin Call’ Margin Call
‘Opening a Binary Option’s
Position’
‘OTC Derivatives’ Providers’
‘Out of the Money’
‘PDS’
‘Position’ Position
‘Put Binary Option’ Call Binary Option
‘Strike Price’ at-
the-money
‘Total Deposit Requirements’
‘Toxic Trading’
GO MARKETS PTY LTD | ABN 85 081 864 039 | AFSL 254963 | PAGE 21
‘Trading Day’
‘Underlying Instrument’
Underlying Instrument
‘Unrealised Profit/Loss’
Unrealised Profit/Loss
‘You’ or ‘Client’
THIS PDS IS PREPARED ON APRIL 8, 2015 AND ISSUED BY GO MARKETS PTY LTD ABN 85 081 864 039 AFSL NO. 254963
