Jn Financial Brochure v 2 March 2010

8/13/2019 Jn Financial Brochure v 2 March 2010

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www.jnfinancial.com

5-7 St Helen’s Place

London EC3A 6AU

Tel: +44 (0) 20 7496 8200Fax: +44 (0) 20 7496 82 10



JN FinancialBest CFD Provider 2009

JN Financial is a leading City broker specialising in Contracts for Difference

(CFDs). The team at JN Financial have won a number of major awards

including best CFD Provider in 2009. Should you wish to include CFDs as

part of your financial strategy, JN Financial could well be the broker for you.

What is a CFD?CFDs provide a way of

entering the stock market

without actually buying

any shares.

Contracts for Difference (CFDs) have been traded

by institutions in the market place for many years.

During the last decade the product has been

increasingly available for the individual investor.

• CFD is short for Contract for Difference. A

Contract for Difference (or CFD) is a contract

between two par ties, typically described as “buyer”

and “seller”, stipulating that the seller will pay to the

buyer the difference between the current value of an

asset and its value at contract time. For example, if

the value of a share is 500p at the opening of thecontract and 510p at the close of the contract,

then the difference is 10p. If the investor has bought

5000 CFDs and predicts that the share price will

rise, then their profit will be 5000 x 10p = £500.

• CFDs provide a way of entering the stock market

without actually buying the underlying asset, for

example without actually buying shares. Instead, the

investor pays commission to enter the contract then

pays interest on the remaining value of the underlying

asset if held overnight. The interest continues until

they decide to end the contract.

• Compared to traditional share buying, CFDs

offer the possibility of a higher profit for a smaller

investment. On the other hand, losses as well as

profits can be magnified. However, CFDs allow you

to cut your losses quickly (by ending the contract), or

increase your profits (by allowing the contract to run).

Further information about CFDs can be found on

page 2.

Trading in Contracts for Difference may not be suitable for all investors due to the high risk nature of the product. You may lose all of your initial stake through

the use of leverage and may be required to make additional payments by way of margin on a frequent and sometimes daily basis. Failure to do so can result

n the closure of part or all of your position. The value of an investment in a Contract for Difference may be affected by a variety of factors, including but not

imited to, price volatility, market volume, foreign exchange rates and liquidity. CFDs are a short term trading tool and commission is charged on the leveraged

amount (not the deposit) and therefore costs can build up when frequently traded. You should evaluate potential losses against affordability. JN Financial are

authorised to give advice on investments including CFDs, however extended runs of losses as well as profits can occur. Past perfomance is not necessarily

a guide to future performance. If in any doubt, please seek further independent advice. Tax laws may be subject to change.

JN Financial Limited is authorised and regulated by the Financial Services Authority No. 442252

www.jnfinancial.com5-7 St Helen’s Place | London, EC3A 6AU | +44 (0) 207 496 8200

61-67 King Street | Manchester, M2 4PD | +44 (0) 161 602 1999

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www.jnfinancial.com

Margin

‘Margin’ is one of the most important aspects of a

CFD. Margin or leverage means you do not have

to pay the full value of the shares. Instead, you put

up a deposit. For example, the ‘initial margin’ for a

share would usually be 5% or below. When trading

currencies and indices using CFDs, the margin

rates are as low as 1%.Margin trading allows you

to magnify your position in the market. Compared

to buying shares, spending the same amount of

money on CFDs provides the opportunity to lever

up your profit. Remember, however, that leverage

can also magnify losses.

Long and Short Positions

CFDs can be used to predict decreases as well as

increases in asset value. Buying a CFD based on

the prediction that the asset value will increase is

known as ‘going long’. Alternatively, buying a CFD on

the prediction that the asset value will decrease is

known as ‘going shor t’. Taking a short position gives

you the opportunity to speculate on prices falling.

Dividends

Taking a ‘long position’ you benefit from dividends

as if you were owning the actual shares. However,

if you are in a ‘short position’, the reverse applies -

you will pay out the dividend.

Tax Efficient

Unlike buying shares, CFDs are not liable to UK

Stamp Duty under current tax legislation.

Buy and Sell Orders

You can control when to buy and when to sell

CFDs by placing Buy and Sell Orders. A Buy Order

directs the broker to buy CFDs when shares reach

a certain price. There are two types of Sell Order.

A stop - loss order triggers an immediate sale. The

aim is to prevent fur ther loss. A profit - target order

triggers an immediate sale when profit reaches a

certain level. The aim here is to protect profit (which

can go down). Please see the glossary on page 9

for further details.

Trade the Global Markets

JN Financial covers all the major global markets,

including Equities (UK, US , Europe and Asia),

Commodities (for example Oil and Gold), Indices

(for example FTSE100, S & P 500 and Nikkei 225)

and Foreign Exchange (for example Sterling/Dollar

and Euro/Dollar).

About CFDsCFDs are increasingly replacing traditional share dealing as a flexible

investment product for cost - effective trading.

5-7 St Helen’s Place | London, EC3A 6AU | +44 (0) 207 496 8200


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“Stop losses are designed to

manage risk.”





A CFD broker buys and sells CFDs for investors.

The broker also provides advice on what and when

to buy and sell. The aim is to make a profit for the

client. As one of the UK’s leading CFD brokers, JN

Financial have the experience, skills and expertise

to provide first class advice and guidance.

Analysis and Research

JN Financial uses their widespread experience and

considerable analytical skills to maximise returns

on your investment. Markets move in an instant andour research department is there to give you the

opportunity to take advantage of these movements.

Personal Service

It is the close relationship between the trader and

you that distinguishes JN Financial. All clients have

direct access to a designated trader. This builds

long-term relationships which means that your trader

understands exactly the kind of service you require,

the level of risk you wish to take and your preferred

strategies. A free monitoring service is available.

If required, you will be informed of major changes

within your portfolio. For example, if important news

breaks which is relevant to your investments, we will

contact you at a convenient time.

Media Coverage

JN Financial are regularly invited to appear on

CNN and CNBC Europe to provide expert opinion

on a range of financial issues. Topics include stock

picking, FTSE summaries, merger & acquisition

news and international market information. To see

a selection of interviews with JN Financial staff click

on http:www. jnfinancial.com/media.html

Trading Techniques

We use a variety of trading techniques. One or morecan be selected to suit your particular requirements.

Your broker will advise on this selection.

Online Trading

JN Financial provide an online trading platform 24

hours a day with a fully integrated price and graph

streaming system. This means that you have access

to your account and are able to trade online yourself.

About JN Financial

03













The research is designed for short to

medium term CFD trading

Research reports have historically been designed

for long-term investing with traditional shares. This

means that research can only give indications to

buy shares and not to profit from a falling Market.

At JN Financial we provide both Buy and Sell

recommendations on a daily basis.

Content

On a typical trading day JN Financial will producetwo reports:

Morning Recommendations

This report will contain two recommendations.

Each recommendation will advise you when a trade

should be executed and an explanantion for this

suggestion. It will also contain a graph providing

information relevant to the recommendation.

Index & Stock Scanner

This report will be sent during morning trading to

give an update of the major UK Indices. It will alsoprovide you with a full stock matrix that gives clear

buy and sell predictions. This information is very

useful to any stock picker who is looking for support

and resistance breaches.

Automated

Our research is sent direct to your inbox to ensure

speed and dependability. Should you wish, the

reports will be sent to more than one email address.

Personal Research

JN Financial traders can spend time on speciific

client requirements. For example if you require

research on a particular stock or sector we

will ensure that this will be dealt within a timely and

efficient manner.

Portfolio analysis

A summary on each stock from your current share

portfolio can be given by a JN Financial trader. If

you want to sell a portion of stock to finance a CFD

account, JN Financial can provide the appropriate

service. Stock can also be used as collateral to

fund CFD accounts.

“Markets move in an instant and

JN Financial is there to give you the

opportunity to take advantage of

these movements.”

04

JN Financial Research The award winning team at JN Financial offer one of the best research

facilities within the marketplace.













The CFD investor has paid a standard financing

charge of £5.48 for holding the position. Interest

is charged on an overnight basis therefore in this

example: £10,000 x 4.0% (LIBOR + 2.75%) ÷ 365

over 5 days = £5.48. Commission is charged as a

percentage of the total value of a trade.

If the CFD investor takes a short position, they will receive

interest in a similar fashion based on LIBOR - 2.75%.

Please remember CFDs are a leveraged product and

may not be suitable for everyone, and losses as well

as profits can be magnified.

Stop losses are not guaranteed and therefore you

can lose more than your initial deposit. Guaranteed

stop losses are available at an extra cost.

Trade 1: Result Profit

Opening Trade Buying Shares Buying a CFD

Price of Reuters 500p 500p

Number of Shares 2000 2000

Value of Position £10,000 £10,000

Stamp Duty (0.5%) £50 NIL

Commission £100 (1%) £50 (0.5%)

Deposit Required £10,000 £500

A Long Trade

After 5 days both investors sell their Reuters shares

and make a profit.

After 5 days both investors sell their Reuters shares

and make a loss.

Closing Trade Selling Shares Selling a CFD




Commission £103 £51.50

Financing Charges NIL £5.48

Net Profit £50 £193.02

Return on Equity 0.47% 38.6%

Trade 2: Result Loss

Opening Trade Buying Shares Buying a CFD




Stamp Duty (0.5%) £50 NIL

Commission £100 (1%) £50 (0.5%)

Deposit Required £10,000 £500

Closing Trade Selling Shares Selling a CFD




Commission £98 £49

Financing Charges NIL £5.48

Net Loss £448 £304.48

Return on Equity -4.48% -60.8%

Example An example of an opening trade in Reuters. The first investor is buying

traditional shares, the second is using CFDs.

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“Please remember all our online trading

services have phone support from the

dealing floor.”

Online Trading A range of online platforms can be used at JN Financial to access the

markets. This gives you the ability to trade within the UK and overseas.

06









Data and Charting

All our clients have access to a charting application

which allows you to obtain graphs on a series of time

scales from 5 minutes to 10 years. Additionally, as a

JN Financial client, you will have the facility to use a

wide range of technical analysis indicators including:

• RSI (Relative Strength Index)

• Moving Averages

• Bollinger Bands

• Fibonacci Retracements

• GANN Lines

• Standard Deviation Channels

Our real time newsfeeds help our clients keep

abreast of the latest information on individual stocks

and the sector in which they operate.

Market Depth

Market depth is offered on all UK stocks to give

you a clear view of the share order book. In terms

of liquidity, this can help with timing of when to

execute a trade. With our Level 2 Online Application,

you will receive prices direct from the London StockExchange and have the ability to place orders into

the market. This is known as Direct Market Access

(DMA) and can help achieve prices better than the

spread. Please specify that you would like a DMA

facility from one of our traders.

Customise

The online trading facilities at JN Financial enable

you to tailor the layout of the screen. By doing this

you can select:

Favourite Stocks Open Positions

Level 2 Executed Trades

Charting Profit & Loss

Newsfeeds Pending Orders

Personal Tutorial

It is important that you have a full understanding

of the online application. A private tutorial over the

phone with a trader is available so that you can take

full advantage of the facilities offered by JN Financial

to help trade, monitor and carry out reseach online.

Our traders will also be happy to conduct a tutorial

at our City offices.





Global Markets

JN Financial aims to provide access to worldwide

trading markets. All major Shares, Indices and

Sector CFDs are offered for UK, European,

US and Pacific Rim markets. JN Financial have

dedicated trading teams that specialise in different

geographical areas depending on your preference.

The following can be catered for:

* London Stock Exchange

* Euronext - France * Euronext - Belgium

* Euronext - Holland

* Germany

* Switzerland

* USA

* Australia

* Singapore

* Sweden

* Global foreign exchange

* Global indices

We offer Commodity Products including all major oil,

grain and metal contracts. All major and many minor

Currency Crosses are covered, either to speculate

on prices or to hedge a currency position.

When trading global markets you will also be

exposed to currency fluctuations as well as the

movement in stock, commodity or index.

If your interest is in a particular market and would

like further information, please contact us for an

informal conversation.

Global Trading

07













Phone Application

Call Customer Services on +44 (0) 20 7496 8200.

They can talk you through the registration process

and help you complete an application.

Online Application

Simply go to www.jnfinancial.com and complete a

registration form.

Paper Application

JN Financial can send you an application form

which needs to be completed, signed and sent

back in the envelope provided to:

JN Financial

5-7 St Helens Place

London

EC3A 6AU

Funding your account

The majority of clients at JN Financial fund

by electronic bank transfer or debit/credit

card. Cheques and other money orders are

also accepted.

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Open an AccountFor any further enquiries please call a member of the JN Financial

Customer Services Team on +44 (0) 20 7496 8200.













Bid/Offer Spread

The difference between the buying price (bid) and

the selling price (offer).

Dividend

A percentage of profit that a company distributes to

the shareholders.

Execution Only

A form of trading with no monitoring or advice,

offered at JN Financial.

FSA

The Financial Services Authority. The statutory

regulatory organisation responsible for the

financial sector.

Good For Day Order (GFD)

An order placed that remains active until executed or

to the market close.

Guaranteed Stop Order (GSO)

A guaranteed order placed against an open position

at an exact price in order to limit a loss.

Good Til Cancelled Order (GTC)

An order placed that remains active until executed

or cancelled.

LIBOR

London Inter-Bank Offer Rate.

Limit Order

An order placed to enter a trade at a better price than

the market or to set a pre-defined price to exit an

open position at a profit.

Market Order

An order for immediate execution at the

market price.

Open Position

A long or short trade. To close, an equal and

opposite trade is needed.

Stop Order

A non guaranteed order placed against an open

position to limit a loss.

Variation Margin

The margin that may be required to add to the

account to keep the position open if the price has

moved against you. Also known as a margin call.

Volatility

Variation in price movement over time.

Glossary For any further enquiries please call a member of the JN Financial


09













2009 Personal Finance Awards

Best CFD Provider

2009 Daily Telegraph Wealth Management Awards

Best Execution Only CFD Provider

Shares Magazine

Nominated Best CFD Provider 2008

Shares Magazine

Nominated Best Equity Derivatives Advisor 2008

AwardsFor any further enquiries please call a member of the JN Financial


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5-7 St Helen’s Place, London EC3A 6AU

Tel: +44 (0) 20 7496 8200 Fax: +44 (0) 20 7496 8210

www.jnfinancial.com

Authorised and Regulated by the

Financial Services Authority No. 442252.

Jn Financial Brochure v 2 March 2010

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