THE SPECIFICS OF TRADING OPERATIONS EXECUTION IN LIBERTEX TRADING TERMINAL

Size: px

Start display at page:

Download "THE SPECIFICS OF TRADING OPERATIONS EXECUTION IN LIBERTEX TRADING TERMINAL"

Randall Lawson
6 years ago
Views:

1 THE SPECIFICS OF TRADING OPERATIONS EXECUTION IN LIBERTEX TRADING TERMINAL Indica3on Investments Limited CYSEC License number 164/12

2 THE SPECIFICS OF TRADING OPERATIONS EXECUTION IN LIBERTEX TRADING TERMINAL Charts plo[ng in the Trading Terminal Changing the volume of the Open Posi3on on the instrument Quote Modes (Execu3on Types) available At the best available at each point in 3me Mid Prices. Available only for non-renewable instruments; Open Posi3on s volume can be increased; Floa3ng Profit of an Open Posi3on can be reinvested. Market Execu3on (execu3on at the Actual Price) compulsory Closing of Posi3ons in case of reaching Stop- Out level The procedure of conduc3ng the CFD Instruments Expira3on Loss level shall be calculated for every posi3on separately; CFD for shares will be closed mandatory at Actual Price when loss level reaches 80%, for other instruments when loss level reaches 100% All the Open Posi3ons of the CFD Instrument which is a subject to Expira3on shall be closed at the last Actual Price for this CFD Instrument and reopened with account of the financial result on the previous futures contract with the same direc3on and mul3plier. In case the Client disagrees to renew his Posi3on he should make the relevant se[ngs in Trading Terminal. The specifics of Orders placement Limits of profit/ loss can be set in USD and at a price. Minimal possible values for the Limits are specified on the Company s Website; In case if at the moment of Limit changed for the Open Posi3on the Current Financial Result of this Open Posi3on is non-zero the new value of the Limit should be set with regard to the Current Financial Result. execu3on of Pending Orders Order shall be queued up for execu3on if a price in the Price Feed becomes equal to the price in the Order, higher than the price in the Order (when going up) or lower than the price in the Order (when going down). In this case the Order is to be executed at the first available price aler its queuing up for the execu3on.

3 F o r m u l a o f calcula3on of the financial result on a certain Posi3on When performing a Trading Opera3on to buy Financial Instrument: PL = S * M * (Ec/Eо - 1) - C, where PL Financial Result on the trade; S trade amount in US dollars; Eо Financial Instrument Quote) when placing a trade; Eс Financial Instrument Quote) when closing a trade; C commissions charged for opening a posi3on and for the SWAP. When performing a Trading Opera3on to sell Financial Instrument: PL = S * M * (1 - Ec/Eо) - C, where PL financial result on the trade, S trade amount in US dollars; Eо Financial Instrument quote when placing a trade; Eс Financial Instrument quote when closing a trade; C commissions charged for opening a posi3on and for the SWAP. A posi3ve Financial Result means the Client's profit, nega3ve means loss. dividends payout on CFD for shares For any Client s Open Posi3ons for CFD for shares as of ex-dividend date, which is determined by the management of the legal en3ty (stock issuer) and announced on the official website of the respec3ve company in advance, the current financial result on the trade with this Instrument on that day increases (in case of a Long posi3on) or decreases (in case of a Short posi3on) by the amount of adjustment for dividends calculated by the formula: Td = S*M* D / Po, where Td the total amount of adjustment for dividends, S trade volume in US dollars; D - the amount of dividends per share; Po quote at the moment of placing a trade. The procedure of SWAP execu3on SWAP is carried out at 9:00 p.m. GMT; During the process of SWAP execu3on charging of/wri3ng-off commission in the Current Financial Result is carried out. The commission rates are listed on the Company s Website; On one of the weekdays (depending on the instrument) commissions are tripled. The details can be found on the Company s Website. Examples of Trading OperaCons: 1. Closing of a trade all Instruments, ex shares.

4 Closing will be applied when loss level reaches 100% Example: Trader opens 100 Euros buy posi3on on EURUSD, with any mul3plier. Posi3on will be closed when the loss (for this par3cular trade) becomes 100 Euros (100% of the trade amount). 2. Closing of a trade CFDs on Shares Closing will be applied when loss level reaches 80% Example: Trader opens 100 Euros buy posi3on on Adidas, with any mul3plier. Posi3on will be closed when the loss (for this par3cular trade) becomes 80 Euros (80% of the trade amount). 3. Pending Orders Pending orders are to be executed at the first available price. Example: Trader has a pending buy order on Gold, at level Current price is at If aler the weekend break, the price opens at level 1248, then the order will be filled at the price of CFDs Futures Expira3ons: Trader has long posi3on of Brent Crude Oil November contract, opened at price At the moment of expira3on last price for November contract is 57.50, first price of next (December) contract is i. If the renewal op3on is on. With renewal op3on on, the trade is in fact closed by the last price of current contract, and opened by the first price of new contract at the same condi3ons (sum of trade, mul3plier, etc.). Because of this, addi3onal commission is charged at the moment of the renewal process. Furthermore, trade open rate changes according to formula: NewOpenRate = NewContractPrice * LastOpenRate / ExpLastPrice. For the current example new open rate of trade will be: 57.30*57.20/57.50 = ~ ii. If the renewal op3on is off. Posi3on will be closed by the last price of current contract. 5. Dividend payout: On the ex-dividend date, before the beginning of the trading session, the amount of dividend adjustment will be accrued (for long posi3ons) or debited (for short posi3ons) to the trade s P&L. For example, trader has long posi3on by CFD on BMW with investment amount 1000x5 with open price of opening of 87 and declared dividend* is 3.5 per share. Under these circumstances, the amount of dividend adjustment (DA) will be: DA=1000*5*3.5/87= * The amount of dividend per share is determined by the relevant company

5 6. SWAP payout: Depending on the SWAP value for the current day, SWAP amount will be calculated by the formula: Deal_Amount * Mul3plier * SWAP_Value. For example, trader has short posi3on by EURUSD 200x15, and SWAP value for short posi3on for the current day is ( %). Therefore, total SWAP amount for described posi3on will be: 200*15*( )/100 = ( ).* * Depending on the instrument/day of week/bank holidays SWAP commission may be charged more than one 3me for the current day.

Account Types Mini Standard VIP Premium Temporary Benefit No Spread No Commission

WWW.FINMARKET.COM Account Types Mini Standard VIP Premium Temporary Commission Minimum Deposit $250 $1,000 $5,000 $100,000 - - - Commissions $15.0 $12.5 $2.0 $1.0 $1.0 From $32.5 $0.0 Daily Market Reviews