Any trading method which is prohibited under the terms of the User Agreement such as scalping, automated data entry system and hedging, or which falls under the definition of market abuse such as insider trading, as well as any prohibited activity such as an abuse of our bonus system, is not allowed on our trading platform. In such circumstances, we reserve the right to void all of your trades and/ or close your account.
Customers cannot lose more than the funds they have on their account. The “Margin Call” feature exists in order to prevent your account from having a negative balance.
Should your equity fall below the maintenance margin amount, we will make a Margin Call and close any/all open positions. It is your responsibility to monitor your open position(s) at all times and ensure that you have sufficient funds on your account or take a decision to close any or all of your open position(s).
It is your responsibility to report and pay tax according to the laws in your local jurisdiction. Moreover, in certain countries we are obligated to withhold tax at source.
You should familiarise yourself with the following definitions:
Customers should monitor their balance at all times and make sure that they have sufficient funds in their trading account to maintain their open positions.
Initial Margin = (position's opening price*size of the trade)*initial margin percentage. For example, let’s suppose you buy 30 Facebook stocks CFDs for $75 each (a "Buy" position), then the value of the position would be 30*75=$2250. If the Initial margin percentage were 20%, then the required initial margin would be 20%*2250=$450. Maintenance Margin = (position's opening price*size of the trade)*maintenance margin percentage. For example, let’s suppose you buy 30 Facebook stocks CFDs for $75 each (a "Buy" position), then the value of the position would be 30*75=$2250. If the maintenance margin percentage were 10%, then the required maintenance margin would be 10%*2250=$225.
Double click on the position to close and select “Close Position”
Right click on the symbol and select “New order”
Stop Loss is used for minimizing losses if the security price moves the wrong direction. Once a position becomes profitable, its Stop Loss can be manually moved to a break-even level. A Trailing Stop automates this process. This tool is especially useful during a strong unidirectional price movement or when it is impossible to monitor the market continuously for some reason.
One of the major benefits of trading CFDs is that customers can trade on margin using leverage. CFD trading means customers can trade a portfolio of shares, indices or commodities without having to tie up large amounts of capital. In order to open and maintain a position, initial and maintenance margin levels must be met. Both the initial and maintenance margin level requirements are specific to each financial instrument.
Market Hours are the time frame in which a trading instrument is available for trading, i.e. it is possible to open or close a trade. You can view this information for each instrument individually by left clicking on the Symbol and right click on Specification in the main screen of the trading platform.
CFDs have grown in popularity over the past few years and it is arguably becoming the preferred way to trade the financial markets. Some of the trading benefits of CFDs include no exchange charges and no stamp duty. Many of the inefficiencies of trading the underlying shares on an exchange are eliminated. The costs and delays of physical delivery of the shares, their registration and any holding or safe custody charges made by a broker are all avoided. The other major benefit of trading CFDs is that customers can trade using leverage on margin. CFDs trading means customers can trade a portfolio of shares, indices or commodities without having to tie up large amounts of capital. Moreover, any financial entitlements, such as dividends, are adjusted for in cash, directly to your account. However, any voting rights available to the holder of an equity share are not available to the holder of an equivalent CFD.
Positions can be closed by any of the following: margin call, execution of a predefined Stop Order, expiry* or manual closure.
Leverage is a concept that enables you to multiply your exposure to a financial instrument, without committing the whole capital necessary to own the physical instrument. When trading using Leverage you only need a fraction of the total value of your position, the rest is effectively lent to you. Profits and losses are based on the total size of the position, so the end result of a trade can be much larger than the initial outlay, in terms of profits or losses. CFDs are a form of leverage trading. The amount needed to open and maintain a leveraged trade is called “the margin”. Trading using leverage is sometimes called “margin trading”. In general, the term leverage is used when a small change in the price of the CFD is amplified into a bigger change, so that the CFD offers an “accelerated” return/loss. Leverage of “10%” (or 1:10) means that if the price of the underlying asset changes by 1%, it is as if the price of the CFD changed by 10%. For example: a $100 balance leveraged by 1:10 increases to $1000. This allows you to buy up to $1000 worth of instruments. Information about the predefined leverage set per instrument can be found by clicking on the "Details" link next to the instrument's name in the platform's main screen.
Contracts for Differences ("CFDs") products were developed to allow customers to enjoy all the benefits of holding a Stock, Index, ETF, Forex, Option or Commodity position without having to physically own the underlying instrument. A customer enters into a CFD at a quoted price, the difference between that price and the price of the CFD when the position is closed is settled in cash, hence the term "Contract for Difference" or CFD
This feature allows you to set a specific rate (price) at which your position will close, in case the price moves against you, in order to minimise your loss. Once this rate is reached or passed (as sometimes the price can ‘gap’ and move past the designated level), the Stop Order will be triggered and your position will be automatically closed. This feature is free of charge. There is no guarantee your position will close at the exact price level you have specified, because of ‘slippage’. Slippage can occur due to volatile price movements. When the market reaches or surpasses the specific price you set for the position to close, the position will close at the next available price. For example: ABC’s Buy/Sell rates are $500/$498. You buy 10 shares CFDs of ABC and set a Stop Loss at the Sell rate of $450.
This feature allows you to set a specific rate at which your position will close , in order to protect your profit. Once this rate is reached or passed, the position will automatically close. This feature is free of charge, but does not guarantee your position will close at the exact price level you specify.