Terms of Business Effective January 25, 2016
These Terms of Business specify the basic trading conditions of the Company Real Trade Group, including execution principles of the Market and Pending Orders on the Trading Platform Real Trader 4. 1. Interpretation of Terms 1.1. "Ask Price" a price at which a Buy Order is executed and a Sell Order is closed. 1.2. "Balance" a condition of a Trading Account before opening a Position. 1.3. "Base Currency" the first currency in a Currency Pair. For instance, in the Currency Pair EUR/USD Euro is the base currency. 1.4. "Bid Price" a price at which a Sell Order is executed and a Buy Order is closed. 1.5. "Buy" to buy a Financial Instrument with a purpose to gain profit from growth in a quotation. A Client Buys and the Company Sells to the Client a Financial Instrument. The other term for "Buy" is "Long". 1.6. "Buy Limit" an Order to open a Buy Position lower than a current market price at the moment of placing an Order. The Order is executed at the Ask Price. 1.7. "Buy Stop" an Order to open a Buy Position at a specified price level higher than a current market price. The Order is executed at the Ask Price. 1.8. "Close" to close an Order at the current market price. 1.9. "Close Price" a price at which a Market Order is closed. 1.10. "Company" the Company Real Trade Group. 1.11. "Company s Homepage" a website of the Company (www.realtrader.org). 1.12. "Conversion Operation" a process by which an asset or liability denominated in one currency is exchanged for an asset or liability denominated in another currency. 1.13. "Currency Pair" two currencies in a foreign exchange transaction. The Currency Pair always consists of two different currencies. 1.14. "Client" a physical person to whom the Company has opened a Trading Account. 1.15. "Delayed Quote" a quotation that has not changed within a 30 (thirty) seconds period and more. 1.16. "Deposit Currency" a currency in which the Client s funds are kept on the Trading Account and all of the operations with Financial Instruments are conducted. 1.17. "Equity" a condition of a Trading Account Balance including all current profits and losses if all the open Positions are closed. The calculation formula: Means = Balance + Current profit. Terms of Business. Effective January 25, 2016 2
1.18. "Financial Instrument" any Financial Instrument available for trading which quotations are sent to the Trading Platform. 1.19. "First Available Price" as a rule the 5th (fifth) Tick after the Gap, if no other Gaps between the Ticks were formed. 1.20. "Free Margin" an amount of funds that is not burdened and may be freely used for opening trading Positions. The calculation formula: Free Margin = Equity Margin. 1.21. "Gap" a price break formed between the quotations equal to 3 (three) Spread size. 1.22. "Hedged Position" one open Buy Position and one open Sell Position in the same Currency Pair and in the same Volume. A Hedged Position conditionally fixes a profit or loss but Swaps will be further charged or credited. By closing one of these Positions, a profit or loss will change depending on a current market price. The other term for "Hedged Position" is "Lock". 1.23. "Leverage" an option by which a fewer amount of funds is required to open a Position. The leverage 1:100 means that for opening a Position, a 100 (hundred) times less funds are required. 1.24. "Liquid Market" a market with many Bid and Ask Orders, characterized by a high degree of liquidity and low volatility. Also called a thin market. 1.25. "Lot" a Volume of a Position equal to 100 000 (hundred thousands) base units of a currency. 1.26. "Margin" an amount of funds that is required for opening and maintaining a trading Position. 1.27. "Margin Level" a current condition of a Trading Account Balance in relation to a Margin calculated in percentage using the formula: Margin Level = (Equity/Margin)*100. 1.28. "Market Closing Hours" a time when a Trading Platform stops to receive quotations. 1.29. "Market Opening Hours" a time when a Trading Platform starts to receive quotations. 1.30. "Market Order" a buy or sell order to be executed immediately at current market prices. 1.31. "Non-liquid Market" a market with few Bid and Ask offers, characterized by a relatively low degree of liquidity, high Spreads and high volatility due to national or international holidays when most of the banks and markets are closed. Also called a narrow market. 1.32. "Open Price" a price at which a Market Order is opened. 1.33. "Order" a Client s instruction to Buy or Sell a currency. 1.34. "Pending Order" an Order for pending execution when the price reaches the Order level. 1.35. "Pip" the smallest change in a foreign Currency Pair price, either up or down. As a rule it is the second or second digit after a comma on a Financial Instrument. Terms of Business. Effective January 25, 2016 3
1.36. "Quote" a price of a Financial Instrument on the Trading Platform. 1.37. "Quoted Currency" the second currency in a Currency Pair. For instance, in the Currency Pair EUR/USD US Dollar is the quoted currency. 1.38. "Real Trader 4" a trading platform to receive quotations and market news in a live mode; to execute financial transactions; to control and monitor open Positions and Pending Orders; to support different time frames of the charts; to write and use the expert advisors, custom indicators, scripts and functions in MQL4 language; to test and optimize trading strategies; the ability to use internal messaging system between the Company and a Client. The detailed information on the Real Trader 4 can be found under the "Help" menu on a Trading Platform or by pressing the key F1 on a keyboard. 1.39. "Real Trader 4 Mobile" a trading platform to manage a Trading Account using mobile devices (Pocket PC or Smartphone). The mobile platform is analogue to the platform Real Trader 4. It allows executing trading operations, supports a display of the charts and technical indicators. The platform does not support writing and using of expert advisors. The detailed information on Real Trader 4 Mobile can be found on the Company s Homepage under the "Mobile Trading" menu. 1.40. "Real Trader 4 Multiterminal" a trading platform to manage multiple Trading Accounts simultaneously. The platform allows working on any amount of accounts, to receive quotations on any Financial Instrument, to place any kind of Orders and to monitor account history on all the Trading Accounts, the ability to use internal messaging system between the Company and a Client. The platform does not support a display of the charts and writing of expert advisors. The detailed information on the Real Trader 4 Multiterminal can be found under the "Help" menu on a Trading Platform or by pressing the key F1 on a keyboard. 1.41. "Requote" if a price has deviated for more than 1 Pip (default), a Requote (new price) will be offered to the Client. 1.42. "Sell" to sell a Financial Instrument with a purpose to gain profit from decrease in a qoutation. The Client Sells and the Company Buys from the Client a Financial Instrument. The other term for "Sell" is "Short". 1.43. "Sell Limit" an Order to open a Sell Position higher than a current market price at the moment of placing an Order. The Order is executed at the Bid Price. 1.44. "Sell Stop" an Order to open a Sell Position at a specified price level lower then a current market price. The Order is executed at the Bid Price. 1.45. "Slippage" an execution of an Order at a price that has deviated for a certain amount of Pips from a requested price. In the Order opening/closing window it appears as the Maximum deviation" and is calculated in Pips. By default it is 1 (one) Pip, if the parameter has not been changed by the Client. If deviation is more than 1 (one) Pip, a Requote will be offered to the Client. 1.46. "Spot" the simplest transaction of a non-cash exchange which assumes a calculation under the transaction not later than within two days after the conclusion of the transaction. Terms of Business. Effective January 25, 2016 4
1.47. "Spread" a difference between the prices Buy (Bid) and Sell (Ask) on any Financial Instrument. 1.48. "Stop Loss" (S/L) an Order to specify the exact rate or number of Pips from the current market price where to close the open Position for a limited loss. 1.49. "Stop Out" a condition when Margin Level goes below 30% (thirty percent) level and the most unprofitable open Position gets closed automatically without Client s consent or any prior notice. 1.50. "Swap" a rollover interest paid or charged for all open Positions being carried over into the next day. 1.51. "Symbol" a name of a Financial Instrument. 1.52. "Take Profit" (T/P) an Order to specify the exact rate or number of Pips from the current market price where to close the open Position for a limited profit. 1.53. "Tick" the smallest possible change in a price, either up or down. 1.54. "Ticket Number" a unique number given to an open Position. 1.55. "Trading Account" a Client s Trading Account to trade Financial Instruments. 1.56. "Trading Platform" the programs Real Trader 4, Real Trader 4 Mobile and Real Trader 4 Multiterminal installed on a Client s computer or a mobile device. The quotations are sent in a live mode through Internet. The operational systems Microsoft Windows and MS Windows Mobile support the proper operation of the Trading Platform. The charts on a Trading Platform screen are built and displayed at the Bid Price only. 1.57. "Volume" a Volume of a Position on any Financial Instrument calculated in Lots, mini Lots or micro Lots. 2. Trading Terms 2.1. The basic trading rules are available for acquaintance on the Company s Homepage under the "Services" menu. 2.2. The Company reserves the right to change trading conditions according to market situation. 2.3. The Company is not responsible for any Client s local technical failures. 2.4. All the Conversion Operations are conducted by the Client through Internet on a Trading Platform Real Trader 4, Real Trader 4 Mobile or Real Trader 4 Multiterminal. The opening of a real account assumes that the Client has been familiarized with the basic principles of how to operate the Trading Platform Real Trader 4 and how to place the Orders on it and fully agrees to the rules and conditions specified in the Terms of Business of the Company. Terms of Business. Effective January 25, 2016 5
2.5. Trading hours start from 01:00 Mondays till 23:59 Fridays according to the trading platform time (GMT+1). For instruments which are traded sessionally, trading hours start from 16:30 till 23:00 (GMT+1) daily, except on week-ends. The Company has the right to declare some days as non-working days at its own discretion. The announcement will be published on the Company s Homepage 1 day in advance under the "Latest Company News" menu. Claims about notice ignorance are not accepted by the Company. If the Client decides to make transactions during these non-working days, he accepts any possible losses on his own responsibility and the Company will not accept any claims nor bear responsibility. 2.6. By opening Position as "Instant Execution" the Client presses the button "Buy" or "Sell" at the moment he/she agrees with the offered price. If during the Order process a current market price has been changed than a Requote Order will be offered to Client to make a new deal at a new price. 2.7. Buy Order is executed at the Ask Price and closed at the Bid Price. Sell Order is executed at the Bid Price and closed at the Ask Price. 2.8. Two quotation mechanisms are used for placing Orders the "Instant Execution" and the "Pending Order". Pending Orders can be placed not closer than 10 points from the current market price. 2.9. The following Pending Orders are used for opening a Position: "Buy Stop", "Sell Stop", "Buy Limit" and "Sell Limit". 2.10. The following Pending Orders are used for closing a Position: "Stop Loss" and "Take Profit". 2.11. To close Position at the current market price the Client should press the "Close" button at the moment he/she agrees with a quotation. 2.12. If during opening or closing an Order a price break (Gap) has been formed and the level of Pending Order was placed inside the Gap, then a Pending Order, except Take Profit and Stop Loss orders, will be executed at the first available market price and it will be different from the previously placed Pending Order level. 2.13. A Hedged Position (Lock) may be opened in the event a Margin Level is above 100% (hundred percent) level. By opening a lock Position a Margin requirement on this Position remains unchanged. 2.14. The Client may close Hedged (locked) Positions by selecting the "Close by" option and pressing the "Close # (Ticket Number) by # (Ticket Number)" button. Spread will be charged or credited to one of the Hedged (locked) Position. This rule applies to locked Positions opened in equal Volumes only. In case there is more than one Hedged (locked) Position on one Financial Instrument, they may be closed by choosing the option "Multiple Close By" and pressing the "Multiple Close By for (Currency Pair)" button. The principles of Spread calculation remains the same as for the "Close by" option. If Hedged (locked) Positions have been opened in non-equal Volumes then by closing those using the "Close by" or "Multiple Close By" option, the smaller Position and symmetrical part of the bigger Position will be closed simultaneously and a new open Position with a new Ticket Number in the same direction as the bigger Position will be generated. Terms of Business. Effective January 25, 2016 6
2.15. The execution of Market and Pending Orders depends on market condition and activity of market quotations. 2.16. Under normal market conditions, which are characterized by having no Gaps in quotation flow, all Pending Orders are executed at the requested price. Market Orders are executed at the Ask/Bid Price of a Trading Platform at the moment when the Client sends a request. However, if a Slippage is bigger than it is set on a Client s Trading Platform, then a new price (Requote) will be offered to the Client. 2.17. Under abnormal market conditions, which are characterized by having Gaps in quotation flow, Pending Orders Buy Stop and Sell Stop are executed at the First Available Price after the Gap. Pending Order Stop Loss is executed at the Client s requested level with the exception of GAP that has occurred between Friday's close and Monday's open, in this case it will be executed at the First Available Price. Pending Orders Take Profit, Buy Limit and Sell Limit are executed at the Client s requested level. Market Orders are executed at the Ask/Bid Price of a Trading Platform at the moment when the Client sends a request. However, if a Slippage is bigger than it is set on a Client s Trading Platform, then a new price (Requote) will be offered to the Client. 2.18. If a dealer has executed a Market or Pending Order by mistake, such transaction may be cancelled or reconsidered. 2.19. Client s requests to open an Order are usually executed within 1-30 seconds. A standby time for each request, which has been queued up, has a limit of 2 minutes. If during this time request was not accepted and executed, it gets deleted automatically from the processing queue. 2.20. To maintain open Positions the Client is obliged to control a Margin Level on his/her Trading Account. If Margin Level goes below 30% (thirty percent) level, a "Stop Out" occurs and Client s open Positions get closed automatically by the first available market price starting from the most unprofitable Position. 2.21. Open Positions are carried over into the next day by the Swap procedure. From Wednesday to Thursday Swaps are calculated in triple size. Swaps can be positive and negative depending on a Financial Instrument. 2.22. The Swap table is updated regularly in the "Services" section of the Company's Homepage. Swap size may vary according to a current market situation. Up to date information regarding changes in Swap table will be published on the Company s Homepage. 2.23 Spreads remain constant in value under all market conditions in accordance with published data in the "Services" section of the Company s Homepage. 3. Procedure of Complaint 3.1. Any Clients claims with regard to trading operations should be sent to info@realtrader.org within 48 hours from the moment a claim reason has occurred. The subject of e-mail should be "Claim from Login No. xxxx, Order No. xxxxxxx". On the Company s forum claims will not be considered. A claim should include the following information: 3.1.1. Name and Surname; Terms of Business. Effective January 25, 2016 7
3.1.2. Login on the Trading Platform; 3.1.3. Ticket No.; 3.1.4. Date & Time (Trading Platform time); 3.1.5. Order type; 3.1.6. Lots; 3.1.7. Symbol; 3.1.8. Price; 3.1.9. S/L; 3.1.10. T/P; 3.1.11. Short description of claim in essence (should not include excessive descriptions, insults or obscene expressions); 3.1.12. Log file; Log files are located on the Client s computer at: My Computer > Local Disk (C:) > Program Files > Real Trader 4 > Logs > file date of opening/modifying/closing a Position or its non-execution. 3.1.13. Screenshot of a Trading Platform and account history for all trading period. To create a screenshot press the key PrintScreen or PrtScr on a keyboard, then copy it into the "Paint" program (Start > All Programs > Accessories > Paint) and save the created file in.jpg/.gif/.png format. To create a Trading Account history for all trading period choose a tab "Account history" on the Trading Platform, then choose the option "All history", "Save as Report" on the contextual menu, which can be opened by making a right click with a mouse in any place on a trading history window. 3.2. By consideration of disputable situation, the Company s server log file is the main source of information. It has the absolute priority against other arguments or informational sources including the Client s log file. 4. Restrictions and Sanctions 4.1. The Client has no right to modify or delete market or Pending Orders, if price has reached its execution level. 4.2. The Company reserves the right, at its sole discretion, to prohibit use of expert advisors, i.e. built on the following principles: 4.2.1 Expert advisor performs the deals using specifics of trading server settings; 4.2.2. Expert advisor sends numerous requests to a trading server within a short period; 4.2.3. Expert advisor is trading using delayed quotations. 4.3. The Company has the right on its sole discretion to cancel all or a part of Orders executed by an expert advisor. 4.4. The Company has the right to cancel Clients Orders in the following circumstances: Terms of Business. Effective January 25, 2016 8
4.4.1. Order was executed at the market price caused by software failure; as a result, unforeseen price emissions outside the market dynamics or delay in quotations were formed; 4.4.2. Order was executed by a dealer s mistake offering a wrong price; 4.4.3. Order was closed in 120 seconds (inclusive) or before the 5th tick from the moment of opening an Order; 4.4.4. If a counter Position on one Financial Instrument is opened in 120 seconds (inclusive) after opening the previous Position on the same financial tool or before the 5 th tick. 4.4.5. Order was executed with a delay of quote at the price that has not been changed within a 30 second period and more on the Trading Platform. 5. Validity and Modification of Trading Terms 5.1. Those Terms of Business shall be considered valid that are published on the Company's Homepage and have entered into force according to the specified date of their modification. 5.2. Terms of Business shall not apply for events that occurred before the coming into force of these Terms of Business. 5.3. In order to avoid any misunderstandings or inaccuracies arising from the translation of Terms of Business from English to another language, the English language version of Terms of Business shall prevail. 5.4. The Company reserves the right, at its sole discretion, to modify these Terms of Business providing prior notification posted in the "Latest Company News" section of the Company s Homepage. Any Client s claims concerning the failure to familiarize himself/herself with the modification of these Terms of Business will not be considered. Terms of Business. Effective January 25, 2016 9