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					                                                                                                                                       01 Capital Spreads
The Advantages of Spread Betting
with Capital Spreads
Spread betting is a tax-free , cost-effective

alternative to trading the financial markets.
It allows you to speculate on the movement
of stocks, shares, commodities, currencies and
indices in one currency, without using a
stockbroker. Betting on the movement of these
products allows our customers the opportunity to
profit on both rising and falling markets.


Tax Free Profits1 – All spread betting profits are recognised as the          Learn to Spread Bet – We don’t expect you to leap into spread betting
winnings of a bet, and are therefore free of Capital Gains and Income Tax1.   without any help, so we provide you with comprehensive, online
                                                                              learning tools such as our online Demo Account (which mirrors our live
No Commission or Fees – Because Capital Spreads is not                        trading environment in every way, other than the variety of products and
a stockbroker, we do not charge commission or fees. We make any               the need to deposit funds) and User Manual. We also run a Learn to
profits from the spreads that we apply.                                       Spread Bet seminar once a month – for more information, check out our
                                                                              website –
Tight Spreads – At Capital Spreads our mission is to provide value
for money plus top quality service. You’ll find our spread quotes far         When you’re ready to trade for real, you can be sure that the prices we
better value that most of our competitors2. Check our live prices             quote are some of the best available in the market.
                                                                              What are the Risks? – Although you can make substantial profits from
Trade on Margin – Spread bets are margined trading products,                  spread betting, if the markets move against your bet, your losses can
which means you need only deposit a small percentage of the full              also be substantial. Capital Spreads has a policy of attempting to limit
value of your trade, leaving your excess capital to continue working          client losses by applying an automatic Stop–Loss to each bet you
hard elsewhere.                                                               make, but these stops are not guaranteed. As a consequence, if a
                                                                              market gaps, you may lose more than your initial deposit.
Limited Risk – Spread Betting is a high-risk activity, but at Capital
Spreads we want you to enjoy your spread betting experience. The              Before you apply for an account, please ensure that you familiarise
automatic Stop-Loss facility we provide ensures that you limit any            yourself with the risks involved and that spread betting matches your
financial loss to a pre-agreed amount, before you open a trade3 (Stop-        investment objectives. If you are new to spread betting, we recommend
Losses are not guaranteed).                                                   that prior to applying for a Live Trading Account, you open an online
                                                                              Demo Account and follow our online User Manual. If you want to know
Bull or Bear – One of the most obvious advantages of spread betting           more about the risks involved, please read the risk warning on our
is the opportunity to go short of (or sell) shares and other financial        website or in the back of this brochure.
instruments such as commodities, currencies and indices. You can
therefore profit from both rising and falling markets.

Size Matters – Spread betting also allows you to trade in sizes smaller
than those usually available in the underlying market.

                                                                                  Tax law can change. 2 Correct at time of going to press.
                                                                              3   Subject to 10.2 and clause 13 in our Terms and Conditions.
                                                                                                                               02 Capital Spreads
Who are Capital Spreads?
Capital Spreads is the spread betting division of
London Capital Group Limited (LCG) an AIM listed
financial services provider. We are one of the
UK’s leading and fastest growing spread betting
companies offering great value for money and
outstanding customer service.


Capital Spreads offers you the following benefits:

Tight Spreads – Capital Spreads provides some of the tightest spreads
in the market – we believe our spreads are far better value than many of
our competitors. For example, our Rolling Daily FTSE spread is just 1
point, the Rolling Daily Wall St. spread is 4 points and the Rolling Daily
GBP/USD is just 3 points.

You can find details of the products that we offer and our spreads in
our Product Information sheets in the back of this brochure or on
our website.

Online trading – Our user friendly online trading system is extremely
easy to use. If you are new to our website, our online User Manual
provides step-by-stop instructions on how to make a bet. We provide
real-time, live prices meaning our quotes move in conjunction with the       Demo Account
underlying market prices.                                                    If you’re new to spread betting or interested in testing our trading
                                                                             platform, we highly recommend that you sign up for an online Demo
You will receive instant confirmation when trading and you can               Account . The Demo Site provides a limited selection of products, but
always review your open positions, past trades and the balance of            otherwise mirrors our live trading system in all respects, other than the
your account.                                                                requirement to deposit funds.

Furthermore, our HTML website allows you to access your Capital              Used in conjunction with our online User Manual, you can really get to
Spreads account, securely, from any PC.                                      grips with the concept of spread betting and familiarise yourself with
                                                                             our platform before you begin spread betting for real.

                                                                             If you have any questions regarding our website or trading system,
                                                                             please do not hesitate to call +44 (0)20 7456 7020 or email us at
                                                                                                                                    03 Capital Spreads


Trade Today – Ever been given a tip on a stock or share, or had             Free up your Capital – At Capital Spreads you need only deposit the
a hunch of which you wish you’d taken advantage? Visit our website          Initial Margin Requirement when you open a new position. To calculate
at and apply for a LIVE account online TODAY 4 –         the minimum deposit for a new position, just multiply your Stake by the
it will take you just a few minutes to complete the form and you could      Minimum IMR detailed in the Product Information. For example, if you
be trading within half an hour 4.                                           wish to open a £1 bet on the Daily FTSE the minimum deposit is just £30.

Free Charting Package – the Capital Spreads website provides                Range of Products – Capital Spreads offers you over 2400 different
a FREE real-time, streaming charting facility which features both           products including shares, commodities, currencies and indices. For
charts and diagnostics on all of our spread products. For more              further information on the full range of products we offer, please
information please refer to the online User Manual.                         consult our Product Information sheets online, or at the back of this
Limited Risk – Capital Spreads has developed a unique account
management system, which automatically calculates a Stop-Loss for           Value for Money – Capital Spreads offers some of the tightest spreads
each bet you make (Stop-Losses are not guaranteed)5.                        in the market. This means that you could save money by choosing to
                                                                            spread bet with Capital Spreads.
Amend & Revise Your Stops & Orders – Capital Spreads offers you
a totally flexible Stop-Loss facility meaning you can amend or revise       Customer Service – Don’t think just because our spreads are better
Stops to suit your needs. You can also create an Order (with a Stop-        value you’ll get a lesser service - our customer service is second to
Loss and Limit attached) to open a new position or a Limit Order to         none. If you want to speak to our knowledgeable and friendly
close a position when you’ve reached your desired profit.                   Customer Support team do not hesitate to call +44 (0)20 7456 7020 or
Margin Trading – Because our online system automatically generates
a Stop-Loss for each position you open, the financial risk of your bet is
significantly reduced. All we require you to deposit is the value of your
open position Stop-Loss plus 20%, which means you can free up your
capital to use elsewhere (Stop-Losses are not guaranteed).

                                                                                Accounts subject to status, and for applications received 8am-6pm Mon-Fri.
                                                                                Subject to 10.2 and clause 13 in our Terms and Conditions.
                                                                                                                                         04 Capital Spreads
How does it work?
Spread betting is an efficient alternative
to traditional trading the financial markets.
Not only is it more versatile, by allowing you
to either go long (buy) or short (sell), it is
extremely cost effective, as you do not pay
commission or fees. If you are a UK resident,
your profits are Tax Free .               6

You can also use Spread Betting
as a hedging tool, to protect investments
in an existing share portfolio.


The “spread” in the phrase Spread Betting refers to the Sell (Bid)                    The market falls and you decide you would like to realise your profit.
and Buy (Offer) price quoted by a spread betting company. This price                  The FTSE 100 is trading at 5154.50 and our quote is 5154-5155. You will
is calculated around the live (or the estimated future) market price                  need to make a buy bet at 5155 to close your original sell bet. Similarly,
of a financial product. When you spread bet, you do not buy the stock                 if you had opened your position with a Buy bet, you would need to Sell
or share but instead you make a bet as to which way you think the                     to close.
market or share-price will move. You can bet per penny or point
movement – the amount you wish to bet is known as the “stake”,                        In the example above if you close your position with a buy bet as quoted
and can be as little as £1/ 1/$1 per point or penny movement.                         by Capital Spreads, your winnings would be calculated as follows:
                                                                                      5278 – 5155 = 123 x £5 = £615
Example of a Spread Bet:
If the FTSE 100 Share Index is currently trading at 5278.50, Capital Spreads          Obviously, if the market begins to rise above the level at which you sold
may quote 5278 (the sell price) – 5279 (the buy price). This quote (which             then your trade will begin to incur a loss. This is calculated in the same
has a 1 point spread) allows you the opportunity to bet that the value of             way as your profit.
the FTSE will fall or rise. If you believe that the value of the FTSE will fall,
you should Sell (or make a down bet) at 5278 or if you think the FTSE will
rise, you would Buy (or make an up bet) at 5279.

Assuming you decide to sell, the following example is based on a bet of
£5 per point movement:

 Betting £5 per Point Movement                        CS Sell        Stop-Loss
                                                      Quote          Level
              5155         5233         5252          5278           5378
Profit        £615         £225         £130          £0             -£500

This figure would be your maximum loss, in this example (stops are not guaranteed).

                                                                                          Tax law and practice may change.
                                                                                                                                       05 Capital Spreads

                      ONLINE TRADING

Online Trading:                                                               A sell bet always closes a buy bet, and vice versa. Alternatively, you
Capital Spreads online trading is easy to master. You can observe our         can leave the bet to expire, when your bet will be
live prices before you trade. Then, select the market of your choice and      automatically closed.
enter your stake into the appropriate field. A trading ‘ticket’ or pop-up
box will be created and a live sell/buy price is quoted. This price will      If, however, the share value falls and you do not sell to close, your
change as the market fluctuates.                                              bet will close if it reaches your Computer Generated Stop Level (CGSL)
                                                                              or Stop-Loss level of your choice, therefore ensuring that you do not
If you wish to buy, click on the Buy button. Once your trade is activated,    incur excessive losses7.
an online ticket will appear on your screen detailing all of the
information concerning your trade (the prices, stake, market, action
(buy/sell), ticket number, and expiry details) – this information will also             Capital Spreads Price Quote in Pence
be sent to you via email. You can print this information if you wish.         700

                                                                                                                                          This is where your
You will also be given an automatic stop level, which indicates where         600                                                         position is closed
our system will stop and close your position (you may amend this stop                                                                     by your Stop-Loss
level at the time you make your trade). All stops are on an ‘our quote’
basis, which means that your position will be closed at the Capital           500       +    You opened your
Spreads price quote and not the live market price level. Stop-Losses                         position here
are not guaranteed.
Example of an Online Bet:
The Capital Spreads Barclays spread quote might be 499.3-503.0. If you                 Week 1        Week 2        Week 3        Week 4        Week 5
believe that the share-price will rise over the next 3 months, you would
“buy” at 503.0. You need to decide your stake and then, click on the
Trade button. For this example, lets say you choose a stake of £2 per         The previous example shows that you opened your bet at 503p and that
penny movement.                                                               when the market fell, the trade was automatically closed by a CGSL at
                                                                              453p. The maximum loss on this bet was £100 (503.0 – 453 x £2 = £100).
This means that you will receive £2 for every penny the share price
rises. If the share Capital Spreads quote for Barclays rises to 511.0-513.5   As the graph shows, the share price continued to fall, whilst
you may decide you want to close your position to realise the profit.         the Stop-Loss ensured that further losses were not generated.

                                                                                  Subject to paragraph 10.2 and clause 13 in our Terms and Conditions.
                                                                          06 Capital Spreads
What are Rolling Daily Bets?
Our innovative Rolling Daily Bets provide a
cost-effective way to trade short and medium
term positions. These bets do not expire at the
end of the day but are automatically ‘rolled over’
to the next trading day.

The spread on these bets is very tight,
increasing the opportunity of profitable trading.
The bets never expire – they continue until
either you trade out of them, or your stop
level is hit.

               ROLLING DAILY BETS

Rolling bets work by just taking the real price in the market and
placing a very small spread around it. At the end of the day all open
bets are ‘rolled’ over to the following day.

Traders can find cost savings versus longer dated bets as there is no
pre-charged interest rate cost applied. For clients with long positions
Capital Spreads will make a charge for every day that the bet is held
overnight BUT for short bets Capital Spreads will actually pay you to
hold overnight8, even if the bet is winning. So you could be earning
twice over!

Rolling FTSE 100 equity bets trade on a spread of just 0.1% (probably
less than the commission you would pay your broker) and as they are
spread bets they do not attract the 0.5% stamp duty required when
purchasing shares. You can also trade with as little as 3% margin,
leaving your money working hard elsewhere.

You will find the spreads charged on our rolling bets compare more
than favourably with our competitors and even in many cases beat
direct dealing costs. Rolling bets are by far the most popular type of
bet made by our clients taking over 70% of all trades made.

We frequently review the financing costs associated with rolling daily
bets, which means that the ongoing cost of holding your position is
kept to a minimum and is always highly competitive.

For more information about Rolling Bets please visit our website.

    FX rolling bets have different financing rules
                                                                                                                               07 Capital Spreads
How can I get started?
Applying for an account with Capital Spreads
couldn’t be easier. Log on to and click on the
How to Apply button. Alternatively, you can
complete the form at the back of this brochure.

If you are new to spread betting, we highly
recommend that you begin by opening a
Demo Account and follow our step-by-step
online User Manual, which you can find                                      How much do I need
on our website.                                                             to open an account?
                                                                            We require a minimum deposit before you
                                                                            make a bet. To calculate the minimum amount
                                                                            of money you need to cover a new position,
                                                                            please refer to the Minimum IMR level, which
                                                                            is indicated on the Product Information Sheets
                                                                            or on the Information button that sits to the
                                                                            right of each market on our website.

Remember that all the information requested on the application form is      Funding your Account
required and without it we are unable to open your account. We will         You must ensure that there are sufficient funds in your account before
then conduct an electronic check to confirm your identity and that you      you open a position. You can deposit funds directly into your account
reside at the address that you have supplied. If you are not listed         online, over the phone or send a cheque made out to “Capital
electronically, we may ask you to send us further documentation.            Spreads”. (Credit cards incur a fee of 2%). Profits will be refunded to
                                                                            the account or card used when you made your initial deposit and only
If you reside outside the United Kingdom, we will require proof of          at your request.
address in the form of a recent, original utility bill or bank statement,
plus a copy of your passport or ID card. We are unable to offer accounts    Margin
to individuals domiciled in the USA.                                        The amount of money required to cover a new position is often
                                                                            referred to as Margin. Unlike our competitors, the Capital Spreads
Trade Confirmation                                                          system will automatically calculate a Stop-Loss to reflect the funds
You will receive confirmation of any action on your account (any trade,     within your account, ensuring that the system does not hold
market order, order amendment, card deposit etc) by email. Therefore,       unnecessarily large amounts of cash.
a personal email address is mandatory. Please contact us immediately
if you discover a discrepancy. You can view your ‘statement of account’     Your margin is calculated as the cash available on your account up
online, at any time.                                                        to the CGSL (computer generated stop level). A Stop-Loss (or available
                                                                            funds) is automatically generated every time you trade at 80% of
To calculate the minimum amount of cash you require to open a new           the CGSL level and the other 20% of your funds is held by us as
position, multiply your stake by the Minimum IMR, i.e. for the Daily FTSE   additional margin.
the Min IMR is 30. If you bet £5 per point, you would need a minimum
of £150 in your account to open this position.                              Questions & Queries
                                                                            Our friendly and experienced Customer Support team are happy to
Spread Betting Beginners                                                    answer your emails or take calls with any queries that you might have.
To really understand the way spread betting works, our online Demo          Please don’t hesitate to contact us. You can call +44 (0)20 7456 7020 or
Account (used in conjunction with our online User Manual) allows you        email us at
to make virtual trades and navigate our dealing platform, so you can
become really familiar with Capital Spreads trading system without
actually risking any money. In addition, you can attend one of our
Learn to Spread Bet seminars which are held monthly. See for details.
                                                                                   08 Capital Spreads

You can’t put a price on friendship…
but how does £70 sound?

                             REFER A FRIEND

By becoming a customer and spread betting with,
we’re sure you’ll quickly appreciate the great range of trading
opportunities available to you.

In fact, we are so confident you’ll love our tighter spreads, top quality
site and excellent customer service, we’re certain that you’ll want to
tell your friends and colleagues about us. To make this more appealing,
we’ve decided to give you £70 for your trouble.

As a customer, you can refer up to five friends,
colleagues or family to open an account with and
you’ll both receive £70 credit 9.

There is no maximum as to how much you could earn by referring new
members10 to

    Terms and conditions apply.

  Members must be at least 18 years old. Once a new spread betting account
is open, £250 must be deposited and two non-equity opening bets must be
made before receiving £70 credit to the account. Capital Spreads reserve the
right to limit the number of friends introduced. Friends must claim £70 within 3
months of being referred.
                                                                    09 Capital Spreads


           We have built our business with the sole purpose of introducing
           competitive pricing and a customer friendly trading environment.

           Our unique account management system ensures that you can
           trade with confidence and the knowledge that all your positions are
           protected against unforeseen market moves11. This client protection
           policy underlines everything that makes us the obvious choice for
           beginners and professionals alike. We are truly concerned that every
           trade that you enter into with Capital Spreads is as stress and error
           free as is possible.

           We are committed to quoting amongst the best prices in the industry
           and feel certain that this, coupled with our customer service policy,
           will keep you coming back for more.

           Our customers are our most valuable asset and consequently
           we want your experience with us to be as harmonious as possible.
           We pride ourselves on our approachability – if you have any problem
           or query please call or email us. We are at your service.

           I hope that you will have a profitable and enjoyable time with
           Capital Spreads and I look forward to meeting you in the future.

           With kind regards

           Simon Denham
           London Capital Group

                Subject to paragraph 10.2 and clause 13 in our Terms and Conditions.
                                                                                                                                    10 Capital Spreads
Basis of Expiry: The Capital Spreads specification of the price at which a contract (bet) expires.
Bid: The price at which you can sell/make a down bet.
Buy: (‘Take’, ‘go long’) means you make an up bet (or close a down bet).
Capital Spreads Market Hours: The times at which Capital Spreads will quote on a given contract.
CGSL – Computer Generated Stop Level: This is the maximum margin used to automatically allocate a Stop-Loss on newly opened positions. In the
event that a client has sufficient funds to cover the CGSL on deposit, the Trading System will assign a stop at a point 80% of the CGSL away from
the opening price of the trade. Otherwise, the system will allocate a stop according to funds available in your account.
Contract Month: The month during which a futures contract expires.
Down Bet: (‘Sell’ ‘Give’ ‘Go Short’) If you think the market will fall, you would place a down bet.
Expiry: The date and time on which the relevant bet expires (may differ to last dealing day).
Futures: A standardised, transferable, exchange-traded contract that expires on a specified future date.
Gap/Gapping: When the stock market opens above or below the close on the previous day or, has opened through the level of an order.
GFD – Good For the Day: An order valid for the day of placement only.
GTC – Good Till Cancelled: An order valid until either cancelled or until the underlying contract has expired.
Hedging: The action of reducing the risk of an outright position in one Market by taking an opposite position in a similar or derivative market, e.g. if
you had an up bet in the FTSE you might enter a down bet in the DAX. In this case although the Hedge would not be exact it is unlikely that the FTSE
will move heavily in the opposite direction to the DAX (but, of course, not impossible).
IMR: Initial Margin Requirement which is the minimum deposit required to make a bet.
Last Dealing Day: The last day in the contract month on which a customer may deal in the product. (May be a significant difference to the Expiry).
Liquidity: The ability of an asset to be converted into cash quickly, without any price discount and any restriction to size of transaction.
Limit Order: An order to either sell above the current market level or buy below that level at a price specified by you to close an open bet.
Long: To buy the market or make an up/buy bet.
Margin: Clients who hold open positions require what is called margin. Margin is calculated as the amount of money you must have in your
account to satisfy Capital Spreads that you are able to honour your debt should your bet lose money (see IMR/CGSL).
Minimum bet: The minimum bet in pounds (euros/dollars) per point that we will accept in that contract.
OCO: ‘One Cancels Other’ a market term where you have two orders, one above and one below, the current market price and where the first to be
executed automatically cancels the other.
Offer: The price at which you can buy/make an up bet.
Over the counter: A financial derivative that is not traded on an exchange, usually for reasons of flexibility e.g. a spread bet.
Per Point/pip/tick: A term used to clarify the bets placed. For instance, a bet per point on Vodafone is for each penny movement in the Capital
Spreads Vodafone share price. A bet per point on the FTSE is for each point move in the relevant Capital Spreads FTSE contract. E.G. a 10 point
movement from 5100 to 5110 on a Capital Spreads Daily FTSE contract would therefore correspond to a win or loss of £100 per £10 placed as a bet.
Rollover: Rolling over is the practice where a position that is due to expire is closed and transferred into the next daily/ monthly contract. We will
allow clients to roll positions from the expiring contract to the next contract for a reduced spread. The original bet is closed (and becomes due for
settlement) and a new bet is established.
Rolling Daily Bet: Continuous daily bet that incurs overnight handling charges.
Sell: (‘Give’, ‘go short’) means you make a down bet (or close an up bet).
Settlement price: The price at which Capital Spreads settles a position at expiry date. The basis of settlement for each contract can normally be
found in the Capital Spreads Product Information sheets.
Short: To sell the market or make a sell/down bet.
Slippage: When an order is not able to be exercised at the requested level due to ‘gapping’. The difference between the requested level and the
actual final exercise level is called ‘slippage’.
Spot Price: The current price at which a particular produce can be bought or sold sometimes referred to as the “cash”.
Spread: The difference between the buy price and sell price of a Capital Spreads quote.
Stop-Loss/Order: An order to either buy above the current market level or sell below that level at a price specified by you to close your bet.
Up Bet: (‘Buy’ ‘Take’ ‘Go Long’) If you think the market will rise, you would place an up bet.
Volatility: A term to describe, and quantify, the relative movement of a given market in the recent past. A market that moves a great deal is said to
be of high volatility and one that is quiet is said to have low volatility.
                                                                                                                              11 Capital Spreads
Risk Warning
Capital Spreads is the spread betting division of London Capital Group      5. Prior to placing bets, you should receive from LCG written
Ltd (LCG) which is regulated by the Financial Services Authority (FSA).     confirmation of all transactions or other charges for which you will be
This notice is provided to you in compliance with FSA requirements          liable. As a result of the Financial Services Act 2000, the bets in this
because you are proposing to undertake dealings in financial                case are enforceable and LCG may be sued by you (if you win) and
instruments in the form of spread bets with a firm which is carrying on     may sue you (if you lose).
investment business as a financial bookmaker. This notice cannot and
does not disclose or explain all of the risks and other significant         6. LCG is prohibited under FSA requirements from providing you with
aspects involved in dealing in such spread betting products. Engaging       investment advice relating to investments or possible transactions in
in spread betting carries a high risk to your capital. As these             investments or from making investment recommendations of any kind.
transactions differ markedly from the more common form of fixed             This prohibition is subject to an exception where advice given
odds betting, where your potential losses are pre-determined in             amounts to the giving of factual market information or information, in
advance, you should not engage in this form of betting unless you           relation to a transaction about which you have enquired, as to
understand the nature of the transaction you are entering into and the      transaction procedures, potential risks involved and how those risks
true extent of your exposure to the risk of loss. The amount that you       may be minimised.
may win or lose will vary according to the extent of the fluctuations in
the price of the underlying markets on which the bet is based.              7. LCG is required to hold your money in segregated trust accounts in
                                                                            accordance with the regulations of FSA, but this may not afford
For many members of the public, these transactions are not suitable;        complete protection.
you should, therefore, consider carefully whether they are suitable for
you in the light of your circumstances and financial resources and          8. If you deposit collateral as security with LCG, you should ascertain
investment objectives. In considering whether to engage in this form        from LCG how your collateral will be dealt with.
of betting, you should be aware of the following:
                                                                            9. If you have reason to believe that LCG is not acting in accordance
1. The high degree of “gearing” or “leverage” is a particular feature of    with representations that it has made to you, the terms of your
this type of transaction. This stems from the initial financial             customer agreement or the rules of the FSA, you should report it to the
requirements applicable to such bets which generally involves a             Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall,
comparatively modest deposit or margin in terms of the overall              London E14 9SR. Telephone number 020 7964 1482.
market value of the bet involved, so that a relatively small movement
in the underlying market can have a disproportionately dramatic             We maintain our financial stability by hedging against large bets. In
effect on your bet. If the underlying market movement is in your            the unlikely event that LCG were to face liquidation, private customers
favour, you may achieve a good profit, but an equally small adverse         are covered by the FSA Compensation Scheme to a ceiling of £48,000
market movement can not only quickly result in the loss of your entire      (claimants would receive the first £30,000 in full and 90% of the
deposit, but may also expose you to a large additional loss over and        balance - a total of £48,000).
above your initial deposit.

2. You may be called upon to deposit substantial additional margin, at
short notice, to maintain your bet. If you do not provide such              London Capital Group Ltd
additional funds within the time required, your bet may be closed at a      4th Floor
loss and you will be liable for any resulting deficit.                      12 Appold Street
                                                                            London EC2A 2AW
3. Bets with LCG are not transacted on a recognised or designated
investment exchange and, accordingly, they may expose you to                Capital Spreads is the spread betting division of London Capital
greater risks than exchange transactions. The betting structure and         Group, which is regulated and authorised by the Financial Services
betting rules will be established solely by LCG persuant with FSA           Authority (FSA).
Conduct of Business rules. For example, if you wish to close the bet
earlier than the time at which it would otherwise automatically expire,
you will have to close it at LCG’s quotation which may reflect a
premium or discount to the underlying market. When the underlying
market is closed, LCG’s quotation can be influenced by the weight of
other Client’s buying or selling with LCG. You will have to close any bet
with the same bookmaker with whom it was originally entered into.

4. Where entering into such transactions, LCG must do so under a
two-way customer agreement (i.e., LCG Terms and Conditions and
documents incorporated by reference therein) pursuant to the FSA
Conduct of Business rules unless exempted from doing so. You should
satisfy yourself that dealing is conducted throughout in strict
conformity with that customer agreement and report to the FSA if you
have reason to believe it is not.
                                                                                                      12 Capital Spreads
London Capital Group
London Capital Group is a well-established
financial services company, which was founded
in 1995. Its businesses include financial spread
betting, Forex trading and institutional broking,
covering both the retail and wholesale markets.
London Capital Group Limited is a wholly owned
subsidiary of London Capital Group Holdings
Limited which is an AIM listed company.

                                     Capital Forex Pro
                                     For more information, please visit our website at
                                     or call us on +44 (0)20 7456 7090.

                                     Capital Derivatives
                                     For more information please visit our website at
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