Risk Warning

Turbos Risk Factors
Turbos are not suitable for everyone. You should not deal in Turbos unless you understand their nature and the extent of your exposure to risk. You should be satisfied that they are suitable for you in the light of your circumstances and financial position. This disclaimer cannot disclose all the risks and other significant aspects of Turbos. If you are in any doubt you should consult an appropriately qualified financial advisor.

Turbos Risk Factors

• Leveraged returns
• Limited Life
• Financing Fees
• Knock-Out Event
• Secondary Market Risk

Leveraged returns
Leveraged returns are a major advantage of Turbos but can also work against investors. Turbos investors should be aware that, if the underlying instrument to the Turbos moves in the opposite direction to that anticipated by investors, the losses incurred by the Turbos will be greater in percentage terms than those incurred by the underlying itself. The prices of Turbos can therefore be volatile. Unlike certain other leveraged offers, your downside risk is limited to your initial investment, no matter how badly the markets move against you.

Limited Life
Turbos have a limited life, as denoted by the expiry date of each product. They may also expire early following a Knock-Out event. After expiry, Turbos can no longer be traded. It is important, therefore that the anticipated move in the underlying occurs prior to product expiry.

Financing Fees
The value of a Turbos is subject to financing fees. The price of a long Turbo is reduced by a daily financing fee throughout the life of the contract. Conversely, the price of a short Turbo is increased by a daily financing fee throughout its life. Financing fees are based on prevailing market interest rates, which may vary over time. Details of daily financing fees applied are available on the website www.sgturbos.co.uk

Knock-Out Event
If a Turbo's Knock-Out barrier is hit, the contract will close with any remaining cash value automatically paid out to the holder. The reference level of the underlying used to determine the pay-out value following a Knock-Out event is the lowest price, in the case of a long Equity Turbo, or highest price, in the case of a short Equity Turbo, at which the underlying trades during the next 30 minutes when the market on which the underlying is traded, is open. The net value of any dividends due to be paid between the occurrence of a Knock-Out event and contract expiry are deducted from the payout value of a long Turbo and added to the payout value of a short Turbo. The payout value of a Turbo contract cannot be less than zero. Any remaining financing component of a Turbo price is lost when a Knock-Out event occurs and therefore you will get back less than if you sold the Turbos at the equivalent market price to the Knock-Out price.
Remember: for Turbos on indices STRIKE = Knock-out barrier.

Secondary Market Risk
Secondary market risk is the risk that investors may not be able to open or close a Turbo position at the desired price. SG is the only market maker in SG Turbos. Under normal conditions SG will endeavour to provide a market-making service. Such arrangements may be temporarily or indefinitely curtailed as a result of technical problems within companies of the SG Group or the London Stock Exchange or data vendors or telecommunications carriers, or in the event of pending announcements by or difficulties in procuring information on underlying companies.