Rules of proceedings for trading operations via MetaTrader Terminal 4.0

Transcription

1 Rules of proceedings for trading operations via MetaTrader Terminal These rules stipulate order of communication between the Client and the Company while the customer effects trading operations via the Client s terminal in the financial markets by using the services provided by the Company. 2. Client s orders processing procedure Trading operations on Fort accounts type are processed by using «Instant Execution», except for CFD futures contracts and ETF contracts. This type of execution provides the client with the warranty that the positions are opened and closed at the explicit price that the Client see in the trading terminal at the moment when the order is made. If at the moment the order is made the price in the market has changed, the Client will be offered a new quote (Requote), which the Client is entitled to reject. On Flex and Pro accounts type and also for CFD and ETF contracts only «Market Execution» is valid. While this type of execution is applied, the Client can either open or close the position at the price which appears at the moment the operation is done, but if the price changes while processing is being done, the order executes at this specific price, which the Client is not entitled to reject Structure of the Client s trading orders processing: the Client shall give an order to execute one or another trading operation via his personal terminal; the formed request sends to the server of the Company where its correctness is verified; a record is entered to the log file of the client s terminal stating that the client s request was accepted by server; the processing result is returned to the Client s terminal The forwarded request can be cancelled at the initiative of the Client, but the Company cannot provide a warranty that this cancellation will be executed The request can be canceled due to the reason that is out of the Company control, including the reject of execution of the order by the liquidity providers or contractors Client's trading account can be blocked automatically due to hyperactivity (a large number of requests for the particular period of time). In this case the Client gets notified in advance by . In some cases, a client's trading account can be blocked immediately, to ensure the safe operation of the trading server and other services of the Company The request can be processed within different time limits which depend on the Client s account type, connection and Internet quality, and the market situation. Some situations of Client s request rejection by the server are possible in case if the Client: forwards the order before the trading session is open or before the first quotation arrives to the terminal a notification pops up stating «No quotes»; has not enough equity on the account to open a new position; sends an order before the trading is open a notification pops up stating Market is closed ; has specified a non-market price in the order; CITADEL OF TRADING Page 1

2 and also in case if the market conditions are different from normal ones. 3. Client s terminal The Client gives the main trading orders exactly via the personal terminal. Usage of any additional supplementary trading terminal functions like Expert Advisor and Trailing Stop is within the Client s responsibility (area). Precision of such operations execution depends on the quality of Internet connection and is not under control of the Company The Company reserves a right to turn off or to stop (suspend) the ability of usage Expert Advisor by the Client in the following situations: the Expert Advisor contains technical or program errors; a great number of the meaningless (aimless) queries are sent to the Company s server (flood by orders); does not comply with the requirements of these rules; uses the unregulated procedures which give the trading advantages such as slippage and price delay, and also any other situations where the instrument s price at the moment when the position is open differs from the real quotation price on exchanges or interbank. The Company shall reserve a right to cancel such orders. 4. Terms of quotations use The Client shall agree that the real server of the Company is the only reliable source of information regarding the actual quotations. Similar databases available in the Client s terminal not always can provide the valid information due to possibility of unstable connection between the terminal and the server and possible data occurrence delay The Company shall not provide any warranty for the order execution at the prices shown in the Market Watch window of the Client s terminal, as the quotations specified in that window are for the indication purposes only Quotations transmitted to the client s trading terminal are within the competence of the Company. Some differences between the quotations provided by the Company and the quotations the clients may find in other sources are permissible. In spite of the fact that the Company makes every possible effort to ensure the maximum possible precision of the information provided to the Clients, some impact of the following factors is still possible: increased volatility, increase in the trading volume, delay in quotes stream transmitting via communication channels, etc. The Client shall understand that considering everything mentioned above the references to any other sources of the quotes transmitting provided by the Client shall be invalid when settling disputable issues. 5. Non-market prices In case Stop Loss or Take Profit order made by the Client is executed by a non-market price, the Company shall undertake: to correct the difference between the false value according to which the position was closed and the real actual price at the moment the price reached Stop Loss or Take Profit level; to reopen the Client s order that was closed by the wrong quote while the real price did not reach Stop Loss or Take Profit level yet Company reserves a right to cancel the Client s order which was opened by the non-market price, by making a proper note in the Trading operation register. CITADEL OF TRADING Page 2

3 5.3. In case Stop Out situation occurs on the Client s account as a result of a non-market price, the Company shall undertake to compensate and to fund the Client s account with the amount that is equal to the amount between the actual and the real quotation at the moment of the order closure. Besides that the Company reserves a right to reopen the incorrectly closed order and make a proper note in the Trading operation register If the Client s order was closed by an incorrect price, the Company may compensate the difference between the actual order closure by the non-marker price and the real order closure at the moment of its incorrect closure. Instead of this, the company may reopen such order and make a proper note in Trading operation register The Company shall guarantee that a non-market price will be deleted from the instant quotes by bringing the trading history in line with the actual market prices Provided that the Company or a Client could provide a sufficient evidence that opening and/or closing the trade has been executed with the price significantly different from the market price, the Company undertakes to recalculate financial results of such trade according to real market (exchange or interbank) quotations or completely cancel it. 6. Leverage The Client has a right to individually choose the leverage value among the offered variants at the moment of the trading account opening. There are also a number of limitations on the leverage value which the Client shall agree. 1:1000 leverage is available for the account balance under 1000 USD or equivalent. 1:500 leverage is available for the account balance under 5000 USD or equivalent. If sum of the balance on your account is from 5000 USD to USD or equivalent, then maximum leverage is 1:200. If sum of the balance on your account is from USD to USD or equivalent, then maximum leverage is 1:200. For balance over USD or equivalent, maximum leverage is 1:33. If funds on your account increase, then the leverage can decrease automatically In case there are no open positions, the Client has a right to change the leverage value manually in the Trader s Room The Company has the right to decrease leverage on the client's trading account to 1:33 and less by the demand of liquidity providers and by the decision of risk management without any further notice to the Client. 7. Spreads The current spreads are stated in the Contract specifications section on the Company s website. For CFD and ETF for all types of the accounts the spread is floating. 8. Swaps The swap points charging procedure on the overnight open positions starts at 00:00:00 of the trading terminal time. The current swap point values are stated on the Company s website. The Client shall agree that on the night from Wednesday to Thursday tripled swap points are charged for the each trading instruments except for the shares on which tripled swap points are charged on the night from Friday to Saturday. On Saturday and Sunday no swap points charges on the open orders are executed. 9. Swap free accounts Client s trading account of Fort or Flex type can be opened as swap free accounts All the swap free trading accounts do not participate in the interest charging program: no overnight fees and no dividends charging. CITADEL OF TRADING Page 3

4 9.3. The Client has an opportunity to shift his account from swap free to the swap accounts group at any moment. But in this case the Client is not entitled to maintain a claim to the Company to pay swap points and any other commissions and dividends which were lost as a result of this kind of transfer. 10. Change of trading conditions The Company reserves a right to change the order execution mode of the Client s account to the one provided by the liquidity provider. The Client shall agree that in this case his trading account type may be changed from Fort or Flex to Pro account type. Thereat all the prior bonuses charged to the Client s account can be cancelled. The Company shall disclaim any responsibility for the fact that the bonuses cancellation may cause the closure of the Client s orders due to the lack of required amount on the account. In case of any changes, the Company shall undertake to inform the Client of such changes by using one of the means of communication specified in Point 5.1 of Client Agreement. Thereafter a new procedure shall become effective instantly During the main trading session the Client opens the orders by using spreads, the margin requirements and orders placement levels, stated in the Contract specifications published on the Company s website. The Client shall agree that the spread values, levels of orders placement (limit & stop levels) and the margin requirements can be increased in case there is a high volatility (for example, after the publications of important macroeconomic news or an intervention takes place). Therefore, the increasing cannot exceed the standard values more than ten times Special conditions for trade transactions made by calendar, intertrade or intermarket spread trading methods(a position opened at any one time (during 60 minutes), on any side or in opposite directions with an equal volume of contracts). These contracts derive from the same group of underlying assets of commodities, either the same position opened with the same futures contract, but with different delivery months, include USOIL, UKOIL and spot metals. If such transactions remain open for more than 3 days, the Company reserves the right to charge an additional daily fee to rollover at a price of $10 per standard lot and an amount equal to the current market spread for open contracts The Client shall agree that the Company has a right to increase the spread values, orders placement levels (limit & stop levels) and swaps, as well as the margin requirements in case of any force majeure occurs specified in Point 12.1 of Risks notification. In such case the increasing cannot exceed the standard values more than 50 times The Company reserves a right after the closing of Friday s trading session to change the leverage up to 1:33 for the orders on FOREX and SPOT markets opened by the Client in 60 minutes and less before Friday trading is over. If after the leverage changing Stop Out level will be reached on the Client s account, according to the rules described in this Reglament forced closure of the open positions will take place. 11. Trading strategies The Client has a right to use any trading strategies in his discretion. But in case the Client s account stops meeting the requirements applied by the liquidity providers, the Company reserves a right to change the trading conditions for such accounts (changes may affect leverage value, min/max order volume, currency or account type). 12. Positions opening Client s order for sell is executed on Bid price, and order for buy is executed on Ask price. CITADEL OF TRADING Page 4

5 12.2. The Client may open an order by forwarding a request to the Company s server via the trading terminal. The following parameters should be specified: name of the instrument; order volume; order type (Buy or Sell) To open a Buy order the Client should press the Buy button in the New order window of the trading terminal, and to open a Sell order the Client should choose Sell button. After this an order to position opening is instantly passed to the Company s server Market execution supposes forwarding and execution the Company the Client s order with the specified volume at the best price available in the system (market). The Order will be opened anyway in case a corresponding counterparty is available. The Client shall agree that with this type of execution the opening price during the fast market may differ from the price claimed by the Client The order can be opened if only the Client s trading account balance is sufficient. (Thereat) At this the equity level is automatically recalculated If the equity level on the Client s account is not enough to place the orders, the opening won t be executed, and a proper notification Not enough money, appears in the New order window In case while the processing of the Client s order a quotation will be changed, a new Bid/Ask price will be offered to the Client by the server and a new requoting window Requote which provides new prices will appear ( for Forex and Commodities instruments, and also for Fort account type). The Client shall confirm his agreement opening of a new order by clicking OK button. If the quotation change while the Client s order was under processing, the server will offer new Bid/Ask price to the Client and new Requote window will appear specifying new prices (for Forex and Commodities tools, and also for Fort type accounts). The Client shall confirm his agreement to open a new position by clicking an OK button The order is considered as opened after a proper record appears in the server s log file. Each new order is assigned an order number (ticker). 13. Positions closing Sell order is closed on Ask price, and Buy order is closed on Bid price During the order closing, the Client is obliged to specify the following parameters. order number (ticker) of the closing position (assigned automatically); order volume (assigned automatically) To close an order, the Client should click «Close order» in the trading terminal order window The order is considered to be closed after a proper record appears in the server s log file. 14. Orders description Approved order types: Buy Stop - an order for buying will be opened at the higher price than the current one; Sell Stop - an order for selling will be opened at the lower price than the current one; Buy Limit - an order for selling will be opened at the lower price than the current price at the moment of order placing; Sell Limit - an order for selling will be opened at the higher price than the current price at the moment of order placing. CITADEL OF TRADING Page 5

6 To close an order the following order types are used: o Stop Loss - an order will be closed at less profitable price for the Client (fixation of an order with loss); o Take Profit - an order will be closed at more profitable price for the Client (fixation of an order with profit) The Client has a right to modify or to cancel the pending order at his own discretion until it is activated, except for the cases when the current instrument price moved closer to such level after which no changes can be made. 15. Orders execution Trailing stop Stop loss order control algorithm. This service functions only under the condition of switched on trading terminal and the stable Internet connection. This algorithm is not a technical development of the Company, and therefore the Client shall assume the risks related to the work of this supplementary (additional) service. (For its part) In its turn, the Company shall disclaim any responsibility for the consequences caused by the work of Trailing stop The Client shall agree that his order can be placed in queue for execution in the following cases: Sell Stop when Bid price becomes equal or lower than the Order s level; Buy Stop when Ask price becomes equal or exceeds the Order s level; Sell Limit when Bid price becomes equal or exceeds the Order s level (for futures and ETF the price may be only higher); Buy Limit when Ask price becomes equal or lower than the Order s level (for CFD futures and ETF the price may be only lower); Take Profit (buy) when Bid price becomes equal or higher than the Order s level (for futures and ETF the price may be only higher); Stop Loss (buy) when Bid price becomes equal or lower than the Order s level; Take Profit (sell) when Ask price becomes equal or lower than the Order s level (for futures and ETF the price may be only higher); Stop Loss (sell) when Ask price becomes equal or higher than the Order s level. Execution rules for orders which fall into the gap: the pending order with the opening level and Take Profit that fall into the gap is a subject of cancellation; such Take Profit will be executed at the first price after the gap; such Stop Loss will be executed at the first price after the gap; such Buy Stop and Sell Stop pending orders will be executed at the first price after the gap; such Buy Limit and Sell Limit pending orders will be executed at the first price after the gap Any order can be executed only at the real market price. 16. Orders placement and their validity time During the period when the trading is allowed, the Client has a right to place, delete and modify orders When placing the pending orders, the following parameters must be specified: instrument name; order volume; CITADEL OF TRADING Page 6

7 order type (Buy Stop, Sell Stop, Buy Limit, Sell Limit); price level (limit & stop level), with which the order must be executed While placing a pending order, the Client s trading account balance is automatically checked in order to check whether free margin is available. After this a new order is added to the open positions list, the total amount of the Client s orders is recalculated and the amount of free margin is calculated In case there is not enough free equity on the Client s account, the pending orders are automatically cancelled Within the normal market conditions the order will be executed at the chosen price without any slippages The order is considered to be executed after a proper record appears in the server s log file. 17. Forced orders closure For Fort and Flex account types with USD, EUR, RUR currency margin call level equals to 50%, stop out level equals to 25%, so the Company guarantees, that after the last order is closed there will be the equity on the trading account within the range from 0 to 25%, required to support this last Stop out order For Fort and Flex account types with USD cents and EUR cents currency margin call level equals to 30%, stop out level equals to 10%, so the Company guarantees, that after the last order is closed there will be the equity on the trading account within the range from 0 to 10%, required to support this last Stop out order For Pro account types margin call equals to 80%, stop out level equals to 40%, so the Company guarantees, that after the last order is closed there will be the equity on the trading account within the range from 0 to 40%, required to support this last Stop out order The Company has a right but is under no obligation to close the Client s orders in case of reaching the margin call level specified in the Points of this procedure The Client s opened orders can be closed by the Company without any prior notification, if the amount of equities on the account reached the stop out value, specified in the Points of this procedure Current Client s account balance is controlled by the server on which an order for closure is generated (stop out order). Stop out is executed at the current market price on first-served basis. Stop out is accompanied by a proper record in the server s log file If the Client has several loss making orders and the terms of Point 17.5 of this procedure are observed, the Company starts to close the orders starting with the most loss-making In case after the Stop out the Client s account balance is negative, the Company compensates the Client s account to zero balance, except for the accounts of the NEWS type and PROaccounts. CITADEL OF TRADING Page 7