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Margin And Base Currency Statement

Olive Financial Markets Pty Ltd (ABN 46 145 551 739; ASFL 390906) (“Olive” or “OliveFX”) is a financial services provider operating and regulated in Australia. Olive in its absolute discretion may allow its clients to hold margin capital in a variety of ways. It may restrict a Client as to how it holds its margin in its absolute discretion. Please refer to the Product Disclosure Statement and Client Agreement but the following is a summary of how Olive may allow you to hold your margin. When you open an account with Olive, you may specify the base currency of your account (from a list of currencies which we allow clients to hold margin and may change on 30 day’s notice) and generally your margin will be held in that base currency. Where the currency domination of your margin is different to the base currency of your account, you may make profits and losses due to changes in the value of your account’s base currency as compared to the currency in which your margin is held.

Olive may also allow you to hold your margin as follows:

1. Individual Shares of Stocks /Derivatives

In which the client deposits funds with Olive, which will be used to purchase one or more shares, stocks and / or securities on a list approved by Olive (“Acquired Assets”) and which may change from time to time in Olive’s absolute discretion. The Acquired Assets will be held in a custody account in the name of Olive (the “Custody Account”) but on behalf of the client. The Custody Account will include the Acquired Assets for the client and other clients, but Olive will maintain a sub-register in which the Acquired Assets are shown as held on behalf of the particular client. The client will be exposed to the upside and downside on the Acquired Assets. Olive will update the value of the Acquired Assets generally on a daily basis but may do so more or less frequently. Importantly, only a proportion of the current (and moving) value of the Acquired Assets is counted by Olive towards the client’s margin. Olive may vary the proportion of the value that it counts towards the client’s margin and will generally give 7 days’ notice but may give a shorter period of notice, in its absolute discretion. Olive may, in its absolute discretion, make adjustments to the value of the Acquired Assets and the margin allowed in relation to Acquired Assets due to (the cash or non-cash component of) dividends and distributions, volatility, capital reconstructions (depending on the type of reconstructions), share or stock splits, corporate action, taxation changes, benefits or costs, and mergers and acquisitions activity. In this paragraph, reference is made to clients depositing funds to purchase the Acquired Assets, but Olive may accept a transfer of shares, stocks and / or securities into the above mentioned Custody Account and the above will apply to the shares, stocks and / or securities so transferred.

2. Bullion/Metals

In which the Client deposits funds with Olive which will be held in our Client segregated account and generally in the same currency as the base currency of the Client’s account (noting the risk if these currencies are different) and Olive will issue over the counter derivatives to such initial value of gold, silver and platinum as the client elects. As those metals are denominated in USD, the Client has an exposure to changes between the USD and the base currency of the Client’s account, if any. Olive will generally allow 100% of the value (as adjusted) of such metals derivatives to be counted towards the client’s margin. Olive may vary the proportion to the value that it counts towards a client’s margin on 7 day’s notice. A Client holding derivatives over bullion / metals (issued by Olive in relation to the Client’s margin) is subject to upside and downside risks correlated to changes in the value of the underlying bullion / metals.

3. Indices

In which the Client deposits funds with Olive which will be held in our Client segregated account and generally in the same currency as the base currency of the Client’s account (noting the risk if these currencies are different) and Olive will issue over the counter derivatives in relation to stock indices (on Olive’s Stock Indices List) as the client elects. Olive has a list of major stock indices in relation to which it will issue over the counter derivatives relating to a Client’s margin. Olive may vary its Stock Indices List. As those stock indices are denominated in different currencies, the Client has an exposure to changes between those currencies and the base currency of the Client’s account, if any. Olive will generally allow 100% of the value (as adjusted) of such stock indices derivatives to be counted towards the client’s margin. Olive may vary the proportion to the value that it counts towards a Client’s margin on 7 day’s notice. A Client holding derivatives over stock indices (issued by Olive in relation to the Client’s margin) is subject to upside and downside risks correlated to changes in the value of the underlying stock indices.

Where a Client elects to hold its margin in over the counter derivatives in relation to individual shares and stocks, stock indices and/or Bullion/Metals, OliveFX’s trading desk will set the entry price generally during the first 24 hours of you opening your account, based on the market at the time of setting the entry price. Holding your margin as derivatives over individual shares and stocks, stock indices and/or Bullion/indices involves costs and fees.

Olive maintains a margin hierarchy in which changes in derivatives relating to your margin and trades in your account(s) or sub-account(s), are reflected in your account balance.

The above is a summary of Olive’s approach to margins and you are requested to refer to the Product Disclosure Statement (PDS) and Client Agreement for complete information.