Commodities refer to basic raw materials or resources that are widely traded on the global market, have standardized qualities, and can be bought and sold in large quantities. Common commodities include precious metals, energy, and agricultural products.

In financial markets, investors typically trade the rise and fall of commodity prices through Contracts for Difference (CFDs) without actually holding or delivering the physical commodity. Common commodity trading instruments include gold, silver, and crude oil.

By trading commodities, investors can participate in global market fluctuations and take advantage of opportunities arising from price increases or decreases.

On the SBCFX platform, clients can trade a variety of popular commodities, including precious metals and energy products, through Contracts for Difference (CFDs). Currently available tradable instruments include:

XAUUSD— Gold

XAGUSD— Silver

XTIUSD— US crude oil (WTI)

XBRUSD— Brent crude oil

These products allow investors to participate in the price fluctuations of the global commodity market by trading based on price increases or decreases without holding physical commodities.

Currently, the most watched commodities in the market include precious metals such as gold, silver, and platinum, as well as energy sources such as crude oil, British crude oil, and natural gas. Precious metals have limited supply and sustained demand, making them highly favored in the long term, while energy prices are highly sensitive to global economic and political events and exhibit strong volatility.

Commodity markets are characterized by high liquidity and price volatility, but they also come with inherent trading risks. Investors should fully understand the following common risks before participating in trading:

Price volatility risk

Commodity prices may be affected by factors such as the global economy, supply and demand changes, geopolitics, and market sentiment, and price fluctuations may be quite significant.

Leverage risk

Contracts for Difference (CFDs) trading typically uses leverage. While leverage can amplify potential gains, it can also amplify potential losses.

Market liquidity risk

In certain market conditions or when major events occur, market liquidity may decrease, leading to increased price volatility or discrepancies between transaction prices and expectations.

Overnight fee risk

Holding positions overnight may incur overnight interest (swap) fees, which can increase transaction costs.

Risk of sudden events

The release of major economic data, policy changes, or sudden geopolitical events may cause rapid market fluctuations.

Therefore, before engaging in commodity trading, investors should fully understand the market characteristics and formulate reasonable trading strategies based on their own risk tolerance.

To ensure a stable trading environment and manageable risks, SBCFX implements a dynamic leverage mechanism and activates high margin requirements (HMR) during specific periods of high volatility.

The applicable time period for HMR includes, but is not limited to:

1. During major news releases: from 15 minutes before the release to 15 minutes after the release.

2. Daily closing and opening hours: 1 hour before the close of each trading instrument and 1 hour after the opening (subject to the actual trading time of the trading instrument).

3. Every Friday: 3 hours before the market closes.

4. Every Monday: 2 hours after the opening of each trading instrument (subject to the actual opening time of the trading instrument).

During the High Margin Requirement (HMR) period:

• Existing margin requirements for positions will remain unaffected; HMR measures only apply to new positions opened during this period.

• After the HMR period ends, margin and leverage levels for the relevant trading instruments will automatically revert to normal standards.

Special Note:

During the period when the High Margin Requirement (HMR) applies, if the available margin in a trading account is insufficient to meet the current margin requirement, some trading operations may be unable to be executed due to insufficient margin, including but not limited to the closing of hedging positions.

Clients should ensure that their trading accounts maintain sufficient available margin during the relevant period.