Regulation on Trading Transactions

Transcription

1 Regulation on Trading Transactions Effective Date November 1, General provisions 1.1. This Trading Policy (hereinafter Policy) defines the procedure and conditions under which the Company carries out trading transactions with Clients The Policy defines the procedure for processing and execution of orders to make and close trades The Company undertakes to perform trade transactions solely in accordance with this Policy The Client acknowledges that the only reliable source of information about the quote stream is the Company server. Quotes in the trading terminal cannot serve as a reliable source of information about quote stream since, if the connection between the Client's trading terminal and the Company's server is unstable, some quotes from the quote stream may not reach the trading terminal. The charts displayed on the trading terminal are indicative. The Company does not guarantee that a trade will be made at the prices indicated on the chart on the trading terminal when the Client submits a request or order. The price of the underlying asset on the trading terminal is generated with the formula (ask+bid)/ If the Company has executed the Client's request for a non-market quote, where non-market quote is defined as a price in a trading terminal that does not correspond to the price on the market at the given time, the Company agrees to adjust the financial result and recalculate it based on the real market price corresponding to the trade closing time. If the Client's order to make a trade was executed for a non-market quote, the Company retains the right to cancel the financial result for that position The Client has the right to make trades only with funds on the Client's account If the amount of free funds is sufficient to make the trade, the trade is made If the amount of free funds is insufficient to make a trade, the Company has the right to invite the Client to make a deposit on the Client's account by the methods used by the Company to make those deposits and, if the Client agreed to make a deposit, the transaction will be made, and for the time from when the trade was made until the time when the deposit was made, the Company will issue a bonus that will be debited from the Client's account immediately after the deposit is credited. However: If deposit was made successfully before the trade closed, the trade is deemed made, the trade amount is debited from the Client account, and the Client has the right to receive income on the trade when the option expires If a deposit was not made to the Client's account before the trade is closed, the trade is deemed void, the trade amount is not debited from the Client's account,

2 and the Client is not entitled to receive the trade income when the option expires. The risk of making a late deposit to the Client's account (the risk of making a deposit to the Client's account after the trade closes) lies entirely with the Client; the Company under no circumstances and for no reason (technical failures, delays in the transferring information, in other cases) is not responsible for the arrival of funds on the Client's account after the trade closes If the amount of free funds is insufficient to make a trade and the Client has refused to replenish the Client's account balance, the trade is not made If the Client is found to abuse the ability to make a trade with insufficient free funds on the Client's account, the Company has the right to unilaterally deem valid the results of all previous trades made by the Client, to debit the sum of all previously closed trades from the Client's account, and to credit the income of all previously closed trades The Client's order to open a position is considered completed and the position opened after the corresponding record appears in the Company's server database. Each trade transaction is assigned an identifier according to the rules set by the Company During trading transactions, the Client is prohibited from: using robotic and automated algorithms to carry out transactions and/or special software to ensure the execution of transactions without the direct involvement of the Client; using anonymizers and other software tools that ensure anonymity of the Client and hide real IP-addresses of the Client's equipment; using the Company's services and/or its software for any illegal or fraudulent activity, or for any illegal or fraudulent transaction (including money laundering) in accordance with the law of the country where the Client is located; taking actions in concert with other Company Clients aimed at causing the Company damage (losses) and using other unfair and dishonest methods for making trades (transactions) with the Company for the purpose of extracting financial gain from those actions The Company may at any time set the following restrictions for the Client regarding the following terms of trades: restrictions on the maximum and minimum trade amount for each of the underlying assets; restrictions on the total number/amount of trades made by the Client and/or the number/amount of trades made by the Client on an individual underlying asset per unit of time established by the Company (interval set by the Company); restrictions on the total amount of trades simultaneously opened by the Client, both in aggregate and on individual underlying assets; other restrictions of any trading terms at its discretion. 2. Messaging 2.1. The Client and the Company interact by exchanging messages: requests, confirmations, reports, and others. All messages are generated by the Client, sent to the Client, and delivered to the Client only with the help of the trading terminal. In

3 exceptional cases, messages may be exchanged by telephone through customer service All messages sent to the Company through the trading terminal, authorized by the user's username and password are deemed sent by the Client The time to process a request and order depends on the quality of communication between the Client's trading terminal and the Company's server and on the market for the underlying asset. Under normal market conditions, the processing time for a Client's request or order is usually 0 4 seconds. In market conditions other than normal, the Company may increase the processing time for Client requests and orders The Company's server may reject a Client request and/or order in the following cases: if the Client sends a request before the first quote arrives at the trading terminal at the opening of the market or before the opening of the trading session; if the Client does not have enough free funds to open a new position; under market conditions other than normal; - under other conditions determined by the Company at its discretion. 3. Making trades 3.1. A trade is made when the Client and Company agree on the material terms of the trades. Agreement is reached by exchanging messages, such as a trade request and trade confirmation. The following sections of the Policy describe the procedure for agreeing on the material terms of a trade Before making a trade, the Client chooses the following material terms of the trading transaction (trade): -underlying asset; -direction of the change in exchange rate; -trade amount; -Multiplier (for the "Forex" tool); -other parameters and terms if those parameters and terms must be selected to make a trade After selecting these conditions, the Client must review the current exchange rate of the selected underlying asset To make a trade, the Client sends the Company a request to make a trade that contains all the material terms of a trade referenced above both selected by the Client and proposed by the Company. On the trading terminal a request is sent by clicking on the button "Up" or "Down" If there is a stable internet connection between the Client's trading terminal and the Company's server, the request to make a trade arrives at the Company's server, where it is verified for correctness and compliance with the current market conditions. Then the request is either executed or rejected by the server. If the trade is made, the trade amount is debited from the Client's account balance. A commission for making the trade is charged if the trade was made with a Forex instrument.

4 3.6. A request to make a trade may be canceled in the following cases: -the trade amount exceeds the Client account balance; -the time for accepting trades has ended; -the time for trading in the selected underlying asset is over; -there was a significant change in the exchange rate for the underlying asset between the time when the Client sent the request and the Company's server processed it; -if other conditions defined by the Company at its discretion occur; -in the exceptional situations described below The Company server sends a message with the result of the trade request to the Client's trading terminal. If there is a stable internet connection between the Client's trading terminal and the Company's server, the message with the result of execution of the trade request will be displayed in the Client's trading terminal. If the trade is executed, the Client will see a graphic confirmation of the transaction on the trading terminal, and information about the trade will appear under "My trades" on the trading terminal If, within a reasonable time after sending the request to make a trade, the Client has not received either graphic confirmation that the trade was made or information about the new trade under "My trades" on the trading terminal or an error message, he cannot be sure that the trade was made or that it was canceled. To clarify the status of the trade, the Client must contact customer support The Client cannot cancel a trade request after it has been sent to the Company's server Information about commissions posted publicly on the Company's website is approximate. The Company is not obliged to make trades at the commissions specified on the site. Exact information about the commission for opening is displayed to the Client on the trading terminal after a trade is opened. 4. Closing a trade, determining the amount of payout on a trade, procedure for setting and executing orders 4.1. A trade is closed according to the rules established by the Company for the relevant instrument. When a trade is closed, the amount of the payout (the amount of income or the trade amount plus profit) on the transaction is calculated, the payout amount is added to the Client's account balance, and the trade disappears from the open trades window on the trading terminal The Company calculates the amount of the payout for various instruments at the closing of a trade according to formulas established by the Company A trade is closed by the agreement between the Company and the Client on the material terms for closing the trade. Agreement is reached by the exchance of messages, such as a request to close a trade and confirmation of trade closure. A trade may be closed without following the procedure described above if the Company receives the Client's consent to close trades quickly. The following sections of the policy describe the procedure for agreeing on the material terms of for closing a trade.

5 4.4. To close a trade, the Client must select the trade that he wants to close in the "My Trades" section and click the Close trade button. Then the Client must review the material terms for closing a trade for the selected open trade - the amount of the payout for closing that trade If the Client agrees with the terms for closing the trade and wants to close the trade, he sends the Company confirmation to close the trade. On the trading terminal, the request is sent by clicking on the "Close" button If there is a stable internet connection between the Client's trading terminal and the Company's server, the request to close a trade arrives at the Company's server, where it is verified for correctness and compliance with the current market conditions. Then the request is either executed or rejected by the server. If the trade closes, the amount of the payout is added to the Client's account balance. There is no commission for closing a trade A request to close a trade may be canceled in the following cases: -there is no exchange rate for the underlying asset from the time when the request is sent until it is processed by the server; -if other conditions defined by the Company at its discretion occur; -in the exceptional situations described below The Company server sends a message with the result of the trade request to the Client's trading terminal. If there is a stable internet connection between the Client's trading terminal and the Company's server, the message with the result of execution of the request to close the trade will be displayed on the Client's trading terminal. If the trade is executed, the Client will see a message with confirmation of the closing of the trade, and the information about the closed trade will disappear from the active section of the "My trades." If the closing of the trade is canceled, the Client will see an error message If, within a reasonable time after sending the request to close a trade, the Client has not received either confirmation of the trade or an error message, he cannot be sure whether the trade was closed or that the closing of the trade was canceled. To clarify the status of the trade, the Client must contact customer support The Client cannot cancel a trade request after it has been sent to the Company's server Information about payout amounts posted publicly on the Company's website is approximate. Exact information about the payout amount is displayed to the Client on the trading terminal after a trade is closed For a Forex instrument, the Client has the right to submit (modify) an order through the trading terminal at any time during the trading period for an open trade. The submission (modification) and execution of orders outside the trading time, may be limited depending on the features of the trading terminal. An order must contain all the material conditions of the trading transaction defined by the Company, namely: The instrument, the amount of profit, and other conditions determined by the Company. An order submitted by the Client must differ from the current market level when the order was submitted by no less than the minimum values specified on the Company's website and specified on the Company's server.

6 If there are contradictions, the information on Company server has priority. The minimum values for which an order can be placed may be increased under market conditions other than the standard ones: in case of increased volatility and/or reduced liquidity, at night, before or during public holidays, before publication of news, etc. An order submitted by the Client is subject to unilateral cancellation (deletion) by the Company in the following cases: - if the order has expired (if an expiration was indicated); - if the trade to which the order was tied closed; - if the placement of the order is the result of mistakes by the Company (technical faults, a non-market quote in the stream, etc.); - if the trade amount changed; - if the number of Client orders poses a threat of an increase in load on the Company server(s); - if the Client rejects the Company's services. After an order is executed and when the current profit has reached the level set in the order, the order cannot be canceled (modified). The Company has the right to limit the number of a Client's orders or their volume. 5. Trading time 5.1. The Company establishes a trading schedule, i.e., the time during which trades can be made and closed separately for each underlying asset Information about commissions posted publicly on the Company's website is approximate. The Company reserves the right to change the trading time at its own discretion. 6. Exceptional conditions 6.1. In exceptional situations characterized by market conditions other than normal, the Company's actions may differ from those described in this policy Exceptional situations include: "Dead market" is a market condition when, for a long period of time, quotes reach the trading platform less often than under normal market conditions. As a rule, this market condition is typical for the Christmas holidays and national holidays in the countries of origin of the underlying assets "Active market" is a market condition characterized by rapid changes in the exchange rate in a short period of time. As a rule, this condition may be related to important economic and exceptional events: (a) Publication of major macroeconomic indicators with a high degree of impact on financial markets; (b) The announcement of interest rate decisions by central banks; (c) Presentations by central banks, heads of countries, finance ministers, heads of companies and exchanges, etc.; (d) The conduct of foreign exchange interventions by state organizations; (e) terrorist acts and state-scale natural disasters; (f) The beginning of war, military actions, and riots;

7 (g) Political force majeure events: resignations, appointments, election of representatives of governmental authorities and heads of companies In exceptional circumstances, the Company makes every effort to carry out trading operations as it does under normal conditions, but nevertheless reserves the right to: (a) Reduction of payment factors; (b) Cancellation of individual requests for conclusion, closing of transactions, cancellation of previously concluded transactions, and cancellation of financial results of previously concluded transactions; (c) Imposing a limit on the number of requests from one Client during a certain period of time; (d) Limiting the available expiry times of options; (e) Temporary cessation of trade in selected types of underlying assets; (f) Full suspension of trade operations.