Terms and definitions – Trading

Terms Trading

Trading Operations

 

Actual Price is a Quote at which the Company is ready to conduct a Trading Operation at a certain Point of time.

Ask Price is the price at which the Client can conduct a Trading Operation to BUY an Instrument, for Trading Terminals which allow conducting Trading Operations with Spread.

Authorized Person is a natural or juridical person officially authorized to manage or conduct specific actions.

Available funds are the sum of money displayed in the Bonus Account section of Personal Account Management Portal that can be transferred from the Bonus Account to the Trading Account and then used according to the rules established for Trading Accounts.

Balance is a sum of money on the Client’s Trading Account excluding Open Positions result; Equity of the Trading Account considering the results of all Closed Positions and Non-Trading Operations.

Base Currency is a currency in a Currency Pair which is bought or sold for the Quote Currency (Counter Currency). It is in the numerator in a Currency Pair (the first currency in the pair).

Bid Price is the price at which the Client can make a SELL transaction (to sell an Instrument), for Trading Terminals which allow conducting Trading Operations with Spread.

Business Day is a time span from 06:00 to 15:00 GMT every day, except weekends and holidays. The latest information about weekends and holidays is published on the Company’s Website. It can be shifted for 1 hour during winter and summer time shift.

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CFD Instrument is an Instrument with which Trading Operation is conducted and which is based on some Underlying Asset. An Underlying Asset can include shares, commodities, indices, futures as well as other objects, factors and circumstances according to the list approved by the Company. The information about the number of CFD Instruments is published on the Company’s Website and set on its trading servers. Trading server’s information will prevail in case there are any discrepancies.

Clear Balance of Funds – available for withdrawal funds which the Client doesn’t use in Trading activity. The amount of Clear Balance of Funds is calculated by the Company according to the rules established by the Company. The information on the amount of Clear Balance of Funds can be specified in Personal Account Management Portal and\or Trading Terminal.

Client is a natural or juridical person who enters into an Agreement with the Company and conducts Trading Operations within the framework of Agreement and its Appendices.

Client’s Account is a special account in the Personal Account Management Portal opened by the Company for keeping the Client’s funds and conducting Trading Operations.

Closed Position is the result of execution of the second part of a Round Trip (Trading Operation of closing a position).

Company’s Account is a Company’s current account in a financial institution, an account (wallet) in electronic payment system as well as other accounts including accounts of Paying Agents.

Counter Currency (Quote Currency) is a currency which is used for buying and selling Base Currency. In a Currency Pair Counter Currency is represented by a denominator (the second one in a Currency Pair).

Currency Pair (FOREX) is two currencies (Base Currency and Counter Currency) which participate in a Trading Operation with currency instruments. The information about the number of Currency Pairs is represented on the Company’s Website and set on its trading servers. Trading server’s information will prevail in case there are any discrepancies.

Dealer is a Company employee authorized to state Quotes, monitor the accuracy of Trading Operations of the Clients, handle complains and explain trading situations related to conducting Trading Operations in the Clients’ accounts.

Equity is a weighted estimate of the cost of funds on the Trading Account which constitutes an amount of funds on the Trading Account including unrealized profit (loss).

Expiration is an Expiration of CFD Instrument, Stopping conducting of Trading Operations with a current Underlying Asset and starting a Trading Operations conducting with the next one. Expiration dates for each CFD Instrument are established by the Company unilaterally and are specified on the Company’s Website and set on its trading servers. Trading server’s information will prevail in case there are any discrepancies.

External Client’s Account is a current account in a financial institution, an account (wallet) in electronic payment system.

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Fixed Price Execution (Upon the request) is a type of Trading Operations execution when the Client is firstly provided with the quotes directly for conducting Trading Operation and then he or she confirms his\her wish to conduct a Trading Operation by clicking at a price in the Trading Terminal. After clicking at the price the Trading Operation is either confirmed on the Company’s server or the Client is offered to request the quotes for conducting Trading Operation again.

Funds Withdrawal is withdrawal of funds from the Client’s Trading Account and their transferring to his or her banking details or to the banking details of a Client’s Authorized Person indicated in his or her withdrawal request.

Gap is a change of a price when the following Quote differs from the previous one by several (tens) of Pips.

Hedging (Lock) is having two Open Positions for the same Instrument where one position is long and the other is short.

Initial Margin (Margin Requirements) is collateral that is required to open a position. Margin Requirements for each Instrument shall be specified on the Company’s Website and set on its trading servers. Trading server’s information will prevail in case there are any discrepancies.

Instant Execution is a type of Trading Operations execution when the Client wishes to conduct a Trading Operation by clicking at a price in the Trading Terminal. If a price is still actual a Trading Operation is confirmed. If a Quote in the Trading Terminal is not actual any more the Client is offered a new price for Trading Operation execution. An offer to conduct a Trading Operation at new price is valid during a Limited time period. The Client shall agree to a possible Trading Operation execution at any Actual Price on the Company’s server should the Client’s attempts to conduct a Trading Operation repeatedly (no less than 2 (two) attempts in a row) be rejected by the Company’s server due to the change of the Actual Price on the server.

Financial instrument is a Spot Instrument and (or) CFD Instrument. The information about the number of Instruments is represented on the Company’s Website and set on its trading servers. Trading server’s information will prevail in case there are any discrepancies.

Leverage is the ratio between the volume of a Trading Operation and the amount of Initial Margin.

Limit (Take Profit) is a type which is assigned to an Order in case such an Order is set to sell at a price (rate) which is higher than the current market rate or to buy at the price (rate) which is lower than the current market rate. The main purpose of Limit Orders is to guarantee a Trading Operation execution at a price that is not worse than the one specified in the Order.

Log File is a part of the Trading Terminal and (or) the Personal Account Management Portal intended for fixing (recording) data transferred by the Parties to each other during the fulfillment of the Agreement via the Trading Terminal and (or) the Personal Account Management Portal. Every access of the Agreement Party to the Trading Terminal or the Personal Account Management Portal shall be fixed in the Log File and duplicated on the Company’s server. The specified servers are the main information source and accepted by the Companies as the evidence in case of examining disputable situations connected with the fulfillment of this Agreement. The information from the Log File of the Company’s Server shall have absolute priority over other arguments when considering a disputable situation including in relation to the information from the Log File of the Client’s Trading Terminal and (or) the Personal Account Management Portal. The company reserves the right not to fix the fact of access of the Agreement Party to the Trading Terminal or the Personal Account Management Portal in the Log File.

Long Position is buying an Instrument with the expectation that its price (value) will rise.

Lot is standard volume of an Instrument in relation to which a Trading Operation is conducted. One Trading Operation may be conducted for several lots or their parts. The sizes of lots for each Instrument and type of Trading Terminal shall be specified on the Company’s Website and set on its trading servers. Trading server’s information will prevail in case there are any discrepancies.

Margin Level (Equity Level) is the ratio between Equity and Margin Required, expressed as a percentage.

Margin Required (Reserved Funds, Margin) is a sum blocked in a Client’s Trading Account to maintain all his (her) Open Positions. Margin Requirements necessary to Open Positions for each Instrument are specified on the Company’s Website and set on its trading servers. Trading server’s information will prevail in case there are any discrepancies.

Market Execution (Actual Price) is a type of Trading Operations execution when the Client wishes to conduct a Trading Operation having agreed before that a Trading Operation will be executed at a price which is actual on the Company’s server (without offering new Quotes).

Mid Price is a price between Bid and Ask Prices at which a Client can conduct a Trading Operation in Trading Terminals which allow conducting Trading Operations without Spread.

Multiplier is the ratio between trade amount percentage change in Libertex terminal and Underlying Asset price, Base Currency price percentage change. The latest information about the maximum sizes of Multipliers for each Instrument is published on the Company’s Website and set on its trading servers. Trading server’s information will prevail in case there are any discrepancies.

Trading Operations

Non-Trading Operation is an operation of funds transfer to and (or) writing funds off from a Client’s Trading Account as well as other Operations not connected directly with a Trading Operations execution.

Open Position is an amount of the Instrument purchased (or sold), not covered by the opposite sale (purchase) of the same Instrument in the same amount and (or) volume; the result of execution of the first part of a round-trip trade (Trading Operations of position opening). As a result of opening a position the Client has liability to a) conduct a contrary Trading Operation closing the position of the same value; b) maintain the Margin Level not less than the one established by the Company (for the terminals using this notion).

Order (Pending Order, Limit, Level) is a Client’s conditional Order to conduct a Trading Operation if the conditions, set by the Client in the Client’s Trading Terminal are met; it is implied that such an Order shall be executed at an unspecified time in the future in accordance with the Orders execution process described by the Appendices to this Agreement. Available Order types depend on the Trading Terminal chosen by the Client.

Point (Pip) is one of the smallest significant Quote unit which is 0,0001 or 0,01 depending on the Instrument. A change of a Quote for 1 (one) unit of the junior category means a change for 1 (one) Pip.

Price Feed is Quotes series sent to the Trading Terminal including all Quotes provided by the Company to the Clients upon their requests and all prices of actually conducted Trading Operations.

Quote Currency (Counter Currency) is a currency in which a price of an Instrument is denominated. In a Currency Pair Counter Currency is represented by a denominator.

Quote is a price at which a Trading Operation with an Instrument can be conducted.

Quote Mode (Execution Type) is a technical process of receiving (confirming) of the current price and making a trade by the Client. Available Quote Modes differ depending on the types of Trading Terminals and Instruments they comprise and are specified in the corresponding Appendices to this Agreement.

Realized (Fixed) Financial Result is a Financial Result on Round Trips. Negative Financial Result on Round Trips is Client’s loss, a positive one is a profit.

Round Trip is a combination of two contrary Trading Operations with the same volume (opening a position with its subsequent closing): purchase with the subsequent selling or selling with the subsequent purchase regarding the position with the same Ticket (ID).

Short Position is selling of Instrument expecting that its price (value) will go down.

Spot Instruments are Currency Pairs and metals which participate in Trading Operations according to the rules of the spot market. A list of Spot Instruments used by the Company is specified on the Company’s Website and on its trading servers. Trading server’s information will prevail in case there are any discrepancies.

Spread is the difference between the Ask Price and the Bid Price of an Instrument, expressed in Pips. The Spread may vary depending on market conditions.

Stop Loss is a type assigned to the Client’s Order in case if such an Order is set to sell at a price (rate) which is lower than the current market rate or to buy at a price (rate) which is higher than the current market rate. The main purpose of the Stop Orders is to conduct a Trading Operation at the current market price after the Order’s price is reached by an Instrument’s price.

Stop-Out is a mandatory closing of the Client’s positions at current market prices when an acceptable Level of losses is reached. Rules of mandatory closing of the Client’s positions can vary depending on the used Trading Terminal and are described in Appendices to the Rules of Trading Operations.

Stop-Out Level is an amount of loss on the Open Position (Positions) of the Client expressed as a percentage which is in case of reaching triggers mandatory closing of the Position (Positions) by the Company at the Actual price without a prior notification of the Client. Stop-Out Levels for each Trading Terminal are specified on the Company’s Website and set on the Company’s Server. In case of any inconsistencies the information specified on the Company’s Server shall prevail.

SWAP is a rollover of an Open Position of a Client to the next day. The Order and the terms of SWAP are established by the Company for each type of the Trading Terminal.

Tick is a minimal change of the price of an Instrument. Specific values of Ticks for all Instruments is published on the Company’s Website and set on its trading servers. Trading server’s information will prevail in case there are any discrepancies.

Ticket (ID) is a unique identification number that the Company is entitled to assign to any opened position or Pending Order of a Client in the Trading Terminal.

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Trading Terms

Trading Account is a special Client’s Account in the record keeping system of the Company used by it for keeping track of all Non-Trading Operations results, trading results, Open Positions, Orders and other actions and requests of a Client that contemplated by this Agreement and its Appendices.

Trading Day is a time span from 21:00:00 to 20:59:59 (GMT), except weekends and holidays. The opening and closing time of Trading Day can be shifted for 1 hour during winter and summer time transition. The latest information about weekends and holidays is represented on the Company’s Website and set on its trading servers. Trading server’s information will prevail in case there are any discrepancies.

Trading Hours is a time span during which Trading Operations execution or Order placement for an Instrument is possible. Trading interval for each Instrument is specified on the Company’s Website and set on its trading servers. Trading server’s information will prevail in case there are any discrepancies. During Non-Trading Hours Trading Operations execution and Order placement (modifications) is impossible.

Trading Operation is a conversion over-the-counter operation with financial instruments performed between a Client and the Company in non-deliverable mode, i.e. an operation implying BUYing or SELLing an Instrument, where the terms «buy» or «sell» are considered technical terms as there is no transfer of ownership of an Instrument. Trading Operations are conducted at the Company’s location.

Trading Operation Volume is an amount of the Instrument which is being sold or bought in lots, units of measurement of the corresponding Instrument or a trade amount in the currency of a Balance (depending on the used Trading terminal).

Trading Terminal is specialized software and hardware, which enables a Client to agree with the Company via the global computer network regarding significant terms and conditions of Trading Operations executed within the framework of this Agreement as well as to record the approved terms and conditions, set and cancelled Orders. The Trading Terminal allows to receive financial information from international financial markets, send instructions to the Company and receive confirmations and reports from the Company. The Trading Terminalshall provide the identification of the Parties (authentication of the Parties) that exchange messages as well as the confidentiality and integrity of messages with the help of built-in tools of cryptographic protection. The specified software and hardware sets include information and trading platform Libertex as well as other systems recommended for usage by the Company for the purpose of the Agreement execution.

Underlying Asset is an asset which is in the base of an Instrument and which is bought or sold while conducting Trading Operations. Underlying Asset can be represented by currency (Base Currency), stocks, commodities, indices, futures as well as other objects, factors and circumstances according to the list approved by the Company.

Unrealized (Floating, Current) Financial Result(Floating Profit/Loss) is a Financial Result for Open Positions at current prices of the Instruments. Negative Financial Result for Open Positions is a Floating Loss, a positive one is a Floating Profit.

Withdrawal Type is one of the types of Funds Withdrawal provided to a Client in his or her Personal Account Management Portal.

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Interview with Head of the Product Department – LIBERTEX