Trading Terms and Conditions

Transcription

1 Version /01/15

2 Content: 1. General provisions 2. Terms and definitions 3. Message communication 4. Transaction procedure 5. Closing a deal, payout amount calculation 6. Prolonging a deal 7. Doubling a deal 8. Trading period 9. Exception conditions 10. Settling claims and disputes 11. Amendments to the terms and conditions 1. General provisions 1.1. The present Trading (hereinafter referred to as Regulations) specify the procedure in accordance with which Company performs binary option trading operations with the Clients in financial markets The Regulations specify the deal opening, closing and changing procedure as well as the trading disputes settling procedure for the Clients and the Company The Company commits to perform trading operations exclusively in accordance with these Regulations. 2. Terms and definitions Asset: financial tool that serves the basis for the derivative financial tool (binary option). A Company s stock, market average, currency pair, a highly valued product or a product option can be the asset. Clients s account balance: the total amount of the Client s account funds. Binary option: a derivative financial tool providing the fixed profit payout if the pre-agreed condition was observed in some definite time period. Currency pair: an asset type that is an exchange rate between two currencies. Type of binary option: a number of definite conditions for the fixed income payout. Option expiration time: the moment till which the option income payout condition shall be observed or at which this condition is checked. Trading time: the time when trading operations for this option type and this asset can be performed. Page 2 (of 12)

3 Payout: fixed award that is paid when the pre-agreed condition of the binary option is observed. It is determined during the option deal. Advance deal closing: closing the deal at the Client s initiative before it is closed at the binary expiration time or when the option condition is observed. Deal settlement: the trading agreement of the essential terms and conditions of the binary option bargain between the Company and the Client with the following binary option bargain opening. Deal closing: trading liquidation of the opened binary option deal; is performed if the bargain terms and conditions are observed at the option termination time or at the Client s initiative. Deal changing: trading operation with the open deal; is performed at the Client s initiative and results in the advance deal closing, its prolonging or doubling. Exceptional situations: the market conditions that are different from the regular ones; are described below in these Regulations. Commission fee: the amount deducted from the Client s account balance for the Company s benefit when the deal is prolonged. Payout rate: the interest-bearing ratio determining the payout amount if the binary option deal conditions are observed and depending on the deal amount. Short-term option: the option type when the payout conditions are the same as for High/Low option and the expiration time is one, two or five minutes of the bargain time. Asset rate: the price of one asset unit. Log-file: the file created by the Company server with the records of all the Client s requests and instructions as well as the results of their processing with split-second accuracy. Rate changes movement: essential binary option deal condition determining the deal payout. Deal acceptance time-out: the moment till the option expiration time after which it s impossible to make a deal with this expiration time. High/Low Option: a binary option with the target price that is equal to the asset price at the bargaining time; the payout is received if the High rate movement is predicted correctly and the asset price is higher than the target price at the option expiration time or if the Low rate movement is chosen and the asset price is lower than the target price at the option expiration time. Touch Up/Touch Down Option: a binary option with the target price that is higher than the asset price at the bargaining time if the Touch Up rate movement is selected or with the target price that is lower than the asset price at the bargaining time if the Touch Down movement is selected; the payout is received as soon as the asset price is the same or higher than the target price if Touch Up rate movement is selected or as soon as the asset price is the same or lower than the target price if the Touch Down rate movement is selected. Page 3 (of 12)

4 Corridor Option: a binary option with two target prices established. One price (higher) is a little bit higher than the asset price for the deal effecting moment and the other level (lower) is a little bit lower than the asset price at the bargaining moment; the payout is received if the asset price is higher than the higher target price or lower than the lower target price by the option expiry for Will exceed the corridor rate movement and if the asset price is lower than the higher target price or higher than the lower target price by the option expiry for Won t exceed the corridor rate movement. Open deal: a binary option deal after it was opened and till the deal closing time if it hasn t been specified if the payout is going to be received. The conventional payout for the present moment is calculated for the open deal based on the current asset rate. If the asset rate remains the same for the option expiration time the payout is received. Profitable zone: the open binary option deal condition when the payout for the deal is possible for the current asset rate. Deal prolonging: the trading operation with the open deal that is initiated by the Client and results in the change of the option expiration time. Re-investment: the function that is available for the Client when effecting High/Low Option deal. If the client uses this function a new deal is automatically created with the same source deal conditions except for the target rate and expiration time as soon the deal is closed and the payout is received. Deal: the agreement between the Client and the Company under which the Client pays the bargain amount the Company commits to pay the fixed award if the binary option conditions the Client selected are observed. Company s server: the Company s software for processing and storing the clients trading operations requests, providing the online trading information on financial markets to the Client, trading reports, observing the trading operations terms and conditions, trading limits and determining the trading financial results. Deal amount: the money paid to the Company by the Client when opening the deal. The binary option payout amount is directly-proportional to the deal amount if the bargain conditions are observed. Trading essential conditions: conditions determining the Company s bargain income payout to the Client. Client s account: a special account in the Company s accounting system for accounting the money transferred by the Client for binary option trading, the money charged off after the deal is opened, commission fee for deal prolonging and the money transferred to the account after the deal is closed. Trading operations: the opening, changing and closing operations for the binary option deals between the Company and the Client. All the trading operations are performed at the Company s registration office. Page 4 (of 12)

5 Trade terminal: the software that allows the Client to receive online information about the financial market trading, perform trading transactions and receive the Company s messages. Unprofitable zone: the open binary option deal condition when the payout is impossible for the current bargain asset rate. Deal doubling: the trading operation with the open deal initiated by the Client that results in the new deal with all the essential conditions that are identical to the source deal essential conditions except for the target price. Target price: the market price the achievement or non-achievement of which is the condition for the deal payout. 3. Message communication 3.1. The Client and the Company interact with each other by means of exchanging messages: requests, confirmations, reports, etc. All the messages are created by the Client, sent to the Client and delivered to the Client via the trading terminal. In exceptional circumstances, the message communication is performed by phone via the Company s client support service All the messages forwarded to the Company via the trade terminal and authorized by the Client s username and password are considered to be transferred by the Client. 4. Transaction procedure 4.1. The deal is opened as soon as the Client and the Company agree on the essential deal terms and conditions by means of messages communication including the deal opening request and the deal confirmation. The following Regulations paragraphs describe the essential terms and conditions agreeing procedure Before opening the deal, the Client selects the following essential terms and conditions: rate movement; binary option type; asset; bargain amount; option expiration time After the Client selected the abovementioned terms and conditions, he/she should study the other essential terms and conditions offered by the Company to select the necessary set. The Company suggests the following deal essential terms and conditions: the target price or prices (for the Corridor option two target prices are suggested); the target price for High/Low or Short-term options is the market price; payout rate. Page 5 (of 12)

6 4.4. To effect a deal, the Client sends the deal effecting request to the Company containing all the abovementioned essential deal conditions both selected by the Client and suggested by the company. The request is sent at the trade terminal by clicking OK button In case of stable Internet-connection between the Client s trade terminal and the Company s server, the deal opening request comes to the Company s server where it is checked for correctness and compliance with the market environment. Then the request is either solved or rejected by the server. If the deal is opened the deal amount is written off the Client s account balance. The commission fee for opening the deal is not charged The deal opening request can be rejected if: the deal amount exceeds the Client s account balance; the deal acceptance time expired; the trading time for the chosen asset expired; the asset rate changed significantly since the time the Client sent the request and till the Company s server processed it; in exceptional circumstances described below The Company s server sends the message with the deal opening request result to the Client s trading server. In case of unstable Internet-connection between the Client s trading terminal and the Company s server, the message with the deal opening request result will be reflected in the Client s trading terminal. If the deal is executed, the Client will see the message with the deal confirmation The deal has been successfully completed and the deal information will appear in the Opened deals window. If the deal is canceled the Client will see the error message If after the deal opening request is sent the Client does not receive either the deal confirmation message or any information about the new deal in the Opened deal window nor error message within the reasonable time he/she cannot be sure that the deal has been opened or canceled. To know the deal status, the Client should contact the client support service The Client cannot cancel the deal opening request after it has been sent to the Company s server The payout rate information is available free at the Company s website and is indicative. The Company is not obliged to effect the deals in accordance with the payout rates mentioned at the website. The Client can find complete and accurate information about the payout rates in the trade terminal after he/she selected the essential deal conditions and before he/she confirms the deal When opening the High/Low Option deal, the Client can use Re-investing function. In this case, after the deal is closed, a new deal is opened automatically after the payout with the essential terms and conditions that are identical to the source deal except for the target price and expiration time. It s impossible to determine the target price and re-investment deal expiration time at the moment of the source deal opening, thus, they are considered pre-agreed at the moment of the source deal opening with re-investment. The re-investment function use and the number of re-investment deals are also the essential deal conditions. Page 6 (of 12)

7 5. Closing a deal, payout amount calculation 5.1. The deal is closed automatically at the option expiration moment for High/Low, Corridor and Short-term binary options. When closing the deal, the option payout amount is calculated, the payout amount is added to the Client s account balance and the deal disappears from the open deal window of the trade terminal When the deal is closed at the option expiration moment, the payout calculation procedure is as follows: if the option is in the profitable zone at the option expiration time the payout amount is S*K/100 where S is the deal amount and K is the percentage-based payout rate for the deal. If the option is in the unprofitable zone at the deal expiration time the payout amount is zero. High/Low, Corridor and Short-term options are in the profitable zone in the following cases: 1. for the High/Low Option with the High rate movement if the asset price at the moment is higher than the target price; 2. for the High/Low Option with the Low rate movement if the asset price at the moment is lower than the target price; 3. for the Short-term Option with the High rate movement if the asset price at the moment is higher than the target price; 4. for the Short-term Option with the Low rate movement if the asset price at the moment is lower than the target price; 5. for the Corridor Option with the Remain in the corridor rate movement if the asset price for the moment is lower than the higher target price and at the same time higher than the lower target price; 6. for the Corridor Option with the Exceed the corridor rate movement if the asset price for the moment is higher than the higher target price and at the same time lower than the lower target price. In all the other cases the option is in the unprofitable zone For Touch Up/Touch Down the deal is automatically closed in the following cases: 1. when the option gets into the profitable zone for the first time; the payout amount in this case is S*K/100 where S is the deal amount and K is the percentage-based payout rate for the deal; 2. when the option expires; the payout amount in this case is zero. When the deal is closed the option payout is calculated and the payout amount is added to the Client s account balance and the deal disappears from the open deal window in the trade terminal Touch Up/Touch Down and Touch/No Touch options are in the profitable zone in the following cases: for Touch Up/Touch Down option with the Touch up rate movement if the asset price at the moment is higher or equal to the target price; for Touch Up/Touch Down option with the Touch down rate movement if the asset price at the moment is lower or equal to the target price; Page 7 (of 12)

8 5.5. The deal may be closed in advance before the option expires for High/Low option with the Currency Pair asset at the Client s wish. Advance deal closing is possible at least 5 minutes after the deal is opened and at least 10 minutes before the option expires The deal may be closed in advance after the Company and the Client agreed on the essential deal closing terms and conditions. The terms and conditions are agreed during the message communication including the deal closing request and deal closing confirmation. The following Regulations provisions describe the agreement procedure for the deal closing essential terms and conditions To close the deal, the Client shall choose the deal he/she is going to close in the Open Deals window and click Change. Then the Client should study the essential deal closing terms and conditions for the selected open deal including the payout amount for the advance deal closing If the Client agrees with the payout amount for the opened deal and would like to close the deal in advance he/she sends the advance deal closing request to the Company including the deal ID and payout amount for the advance deal closing. The request is sent in the trade terminal when you click Close button In case of stable Internet-connection between the Client s trade terminal and the Company s server, the advance deal closing request comes to the Company s server where it is checked for correctness and compliance with the current market environment. Then the request is either executed or rejected by the server. If the deal is closed the payout amount is added to the Client s account balance. Commission fee for the advance deal closing is not charged The advance deal closing request can be canceled in case of: the advance deal closing time-out; significant asset price change after the request was sent and till it was processed by the server; exceptional situations described below The Company s server sends the message with the advance deal closing request result to the Client s trade terminal. In case of unstable Internet-connection between the Client s trade terminal and the Company s server, the advance deal closing request result will be reflected in the Client s trade terminal. If the deal is executed, the Client will see the deal closing confirmation message and the information about the closed deal will disappear from the Open deals window; if the advance deal closing request is canceled the Client will see the error message If the Client didn t receive any deal confirmation or error message within the reasonable time after he/she sent the advance deal closing request he/she cannot be sure the deal is closed or the deal closing is canceled. To clear up the deal status, the Client should contact the client support service The Client cannot cancel the advance deal closing request after he/she sent it to the Company s server. Page 8 (of 12)

9 5.14. The information about the advance deal payouts is published at the Company s website in open access and is indicative. The payout information is available for the Client at the trade terminal when selecting the advance close deal. 6. Prolonging a deal 6.1. The Client can prolong the High/Low option deal with the Current Pair asset, i.e. move the deal expiration time till the next deal asset expiry. The deal prolonging is possible at least 5 minutes after the deal is opened and at least 10 minutes before the option expires The deal is prolonged after the Company and the Client agree on the deal prolonging essential terms and conditions by means of message communication including the deal prolonging request and deal prolonging confirmation. The following Regulations provisions describe the deal prolonging terms and conditions agreeing procedure To prolong the deal, the Client shall select the deal he/she would like to prolong in Opened deals window and click Change button. Then the Client shall study the deal prolonging essential terms and conditions for the selected deal including the commission fee for prolonging the deal If the Client agrees to the commission fee for prolonging the deal and would like to prolong the deal he/she send the deal prolonging request to the Company containing the deal ID and commission fee for prolonging the deal. The request is sent at the trade terminal by clicking Prolong button In case of stable Internet-connection between the Client s trade terminal and the Company s server, the deal prolonging request comes to the Company s server where it is checked for correctness and compliance with the current market environment. Then the server either executes or rejects the server. If the deal is prolonged the commission fee is charged off from the Client s account balance The deal prolonging request can be canceled in the following cases: the deal prolonging time-out; significant asset price change after the request was sent by the Cusotmer and till it was processed by the Company s server; exceptional situations described below The Company s server sends the message with the deal prolonging result to the Client s trade terminal. In case of stable Internet-connection between the Client s trade terminal and the Company s server, the message with the deal prolonging request result will appear in the Client s trade terminal. If the deal is executed, the Client will see the deal prolonging confirmation message in the Opened deals window and the option expiration time will change. If the deal prolonging is canceled the Client will see the error message If the Client didn t receive any deal prolonging confirmation or error message within the reasonable time after he/she sent the deal prolonging request he/she cannot be sure the deal is closed or the deal closing is canceled. To clear up the deal status, the Client should contact the client support service. Page 9 (of 12)

10 6.9. The Client cannot cancel the deal prolonging request after he/she sent it to the Company s server The information about the advance deal payouts is published at the Company s website in open access and is indicative. The payout information is available for the Client at the trade terminal when selecting the deal to be prolonged. 7. Doubling a deal 7.1. The Client can double the High/Low option deal with the Current Pair asset, i.e. open a new deal with the essential terms and conditions that are identical to the source deal except for the target price. The deal doubling is possible at least 5 minutes after the deal is opened and at least 10 minutes before the option expires The deal is doubled after the Company and the Client agree on the deal doubling essential terms and conditions by means of message communication including the deal doubling request and deal doubling confirmation To double the deal, the Client shall select the deal he/she would like to double in Opened deals window and click Change button. Then the Client shall study the deal doubling essential terms and conditions for the selected open deal that is the new deal target price If the Client agrees to the new deal target price and would like to double the deal he/she send the deal doubling request to the Company containing the deal ID and target price of the new deal. The request is sent at the trade terminal by clicking Double button The following steps for the new deal opening take place as described in Paragraphs of thetransaction procedure section. 8. Trading time 8.1. The Company sets up the trade schedule, i.e. the time when the deal can be opened, closed or transferred for every separate asset and every binary option type The trading time information is published at the Company s website in free access and is indicative. The Company reserves the right to change the trading time at its own discretion. 9. Exception conditions 9.1. In exceptional situations characterized by specific market environment that is different from the ordinary one, the Company s trading activity may differ from that described in these Regulations Exception conditions may include: Frozen market is the market condition when the rates get at the trading platform less frequently than in the normal market environment within a long period of time. This market Page 10 (of 12)

11 condition is mostly characteristic of Christmas and national holidays in the countries of the asset origin Active market is the market condition that is characterized with rapid rate movement during a short period of time. As a rule, it can be related to important economic and exceptional events: a. publication of macroeconomic indices having a great influence on financial markets; b. announcing the interest rates by central banks; c. public speeches of the central bank management, heads of the state, ministers of finance, management of the companies and stock exchanges, etc.; d. currency interventions performed by the governmental organizations; e. acts of terrorism and natural disasters of the national level; f. the beginning of war, military actions and mass riots; g. political force-majeure events including resignations, appointment, governmental elections and elections of the company s management In exceptional situations, the Company uses its best endeavors to continue trading operations like in the usual environment. However, the Company reserves the right to: a. reduce the payout rates; b. increase the deal prolonging commission fees; c. cancel some deal opening, advance closing or prolonging requests; d. introduce the request limits for one Client for some period of time; e. limit the available option expiration times; f. suspend trading operations for some option and/or asset types; g. stop all the trading operations. 10. Settling claims and disputes All the disputes between the Client and the Company concerning trading operations, payout calculations or other actions mentioned in the Client agreement and these Regulations are settled by means of negotiations. If the parties didn t achieve any consensus, the Client has the right to apply to the Financial Market Relations Regulation Center (FMRRC) If the Client thinks the Company violated the Trading Rules and Regulations the Client has the right to lay a claim against the Company. The claim is accepted during 48 hours after the dispute arose All the claims shall be forwarded in writing via at support@migesco.com or via Contact us webpage at the Company s website. The claims forwarded in other form are not entertained All the claims laid in the wrong form with the use of offensive words and insults are not entertained. Page 11 (of 12)

12 10.5. The claim shall include the following information: the Client s full name; the Client s username in the Company; the date and time of the dispute arising; short description of the dispute; the applicant s claims, the claim amount and legal background if the claim is the subject for pecuniary valuation The Company reserves the right to demand additional information allowing to settle the dispute from the Client. If this information is not provided, the claim shall be considered with regard to the documents provided The claim consideration term for the Company shall not exceed 5 working days since the claim is lodged The claim is considered on the basis of the information provided by the Client and log-files from the Company s server. The log-files from the Company s server have an absolute precedence over other evidences The Company is not responsible for uncompleted deals and does not compensate any pecuniary or non-pecuniary damages sustained by the Client in respect to lost-profit When considering the dispute, the Company does not consider the Client s references to other companies and websites information. 11. Amendments to the Rules and Regulations The Company reserves the right to introduce amendments to these Regulations at its sole discretion The Company at its sole discretion specifies the date when these amendments to the Regulations come into effect The Company shall not inform the Client of any changes or amendments in the Regulations; the Client is responsible for familiarizing with the amendments to these Regulations The amendments to these Regulations cover all the Company s Clients irrespective of the registration date. Page 12 (of 12)