Some of the instruments we offer may be considered complex. Such instruments can multiply your losses and may not follow the exact price fluctuations of the indices they are designed to represent.
As a result, we have implemented an appropriateness test to evaluate your knowledge and your experience in handling this type of product. It is a unified assessment that covers all types of complex instruments we offer.
Which instruments is this applicable to?
- Inversed funds
- Leveraged funds
- Exchange-traded commodities (ETCs)
- Exchange-traded products (ETPs)
- Exchange-traded notes (ETNs)
Why is this test needed?
We are required to assess the appropriateness of our clients for trading in complex financial products.
For which accounts is the test relevant?
The test is relevant for Invest accounts across all our entities, and additionally for Stocks and Shares ISA and SIPP accounts under Trading 212 UK Ltd.
How do I complete the test?
It will appear when you start placing an order with a complex instrument. Tap the button on the screen to start it. Once you complete the test successfully, you will return to the trade screen and can continue placing your order.
You can also access it in the Portfolio tab of the app if you have open positions with such instruments.
The test starts with a couple of questions about your experience with this type of product, followed by knowledge questions about how these instruments work.
What if I have an open position with such an instrument?
You will be asked to complete the appropriateness test and will have 3 months to do so. No BUY orders can be submitted after this period unless you complete the test.
What happens if I don't pass the test?
You won't be able to trade the complex instrument until you retake the test and pass. You can retake it after a short cooldown period.
What happens if I close the position without completing the test?
You will no longer see the pending test in your Portfolio. However, if you try to open a new position with a complex instrument, the test will appear once again.
What if I don’t have a position with such an instrument and decide to open one?
You will need to complete the test first.
Can I retry the test?
Yes. After a failed attempt, there is a short cooldown period before you can try again. We’d suggest that you use this time to learn more about these products.
Once the cooldown is over, the test will be available in your Portfolio tab in the app, and it will also appear again the next time you try to place an order with a complex instrument.