Trading Terms

Financial Assets and Instruments

Assets

It is any resource owned by an individual or organization that is expected to provide future economic benefitsduring trading.

Bond

It is a fixed-income instrument representing a loan made by an investor to a borrower, typically corporate or governmental and regulated by the general public.

Crypto

It is a modern financial asset of digital values that uses cryptography and has a huge library of options to trade like Bitcoin, Ethereum, etc.

Currency pair

It is the subject of the trading activity, the essence of which is limited to the ratio of the value of one currency in a currency pair to another currency in a currency pair.

Instrument

It is a financial contract, such as stocks, bonds, options, or futures, that can be traded in the financial markets and shared between parties like the Client and the Company.

Security

Security is any stock, option, precious metal, interest rate, bond, etc.

Client and Account Management

Authorized Person of the Client

It is an individual who has been given the legal right to act on behalf of a Client in financial transactions. It could be:

·        A person of legal age due to the laws of his/her country of citizenship and/or tax residence. If such laws prohibit receiving the Company’s services due to age conditions, this individual cannot be named an Authorized Person of the Client. The individual of such status has all legal rights to rule the Client deposits and withdrawals on trading accounts.

·        A business representative or other legal entity functioned by the state’s law and provisions where the Client can get the access to the Platform’s services on legal base. Such a business representative has the full right to apply for any transactions on behalf of the Client to make a deposit or withdrawal funds due to sole Client’s request.

Personal account

It’s a password-protected client’s zone on the Company's website. The personal account is available to the Client after opening a trading account. The purpose of the cabinet is to identify the Client, maintain a register of conducted trading operations as well as to provide information support to the Client.

Trading account

It’s the register of accounting transactions on the trading platform of the Company personalized for a specific client and reflecting completed transactions, open positions, non-trading transactions and orders as well as other information.

Identification data

For individuals, identification data are the passport data of the person indicated during registration on the Company's Trading Platform, including the registration address of the individual. For legal entities, identification data are numbers under which a particular legal entity has been registered in the relevant state and fiscal registers.

Compliance

It is the adherence to laws, regulations, and ethical standards set by regulatory bodies and the financial industry.

Know Your Customer (KYC)

It is a process used by the Company to verify the identity, suitability, and risks involved with maintaining a business relationship with a client.

Trading and Transaction Processes

Ask

The price at which the purchase is available to the client, the larger price in the quotation

Balance

The balance (or balance of the trading account) is the result of all transactions, procedures and operations performed by the client. It means both the trading activities of the client, and the procedure of replenishing or withdrawing funds.

Bid

It is the price at which the sale is available to the client; the less price in the quotation.

Force Majeure or Emergency

Failure to provide normal trading conditions for reasons beyond the control of the Company, software or hardware failures of the Company and other situations that cannot be foreseen.

Hedged margin

The Company needs a guarantee to open and maintain fixed (locked) positions. The guarantee is determined for each trading instrument separately.

Initial Margin

It’s a type of the trading activity of the Client, when trading operations are carried out not on the real amount, which the Client has, but on the volume enlarged with the help of the leverage. "Initial margin" is a necessary amount of money on the trading account of the Client (for each trading instrument determined separately), which the Company requires to open a certain position.

Instruction to withdraw funds

It’s a Client’s command via a personal cabinet in respect of writing off funds from the Client's trading account. In fact, this is an order to withdraw funds to any account of the Client or his/her trustee.

Long position

This term refers to the process of buying a trading instrument with the prospect of appreciation.

Lot size

It’s quantity of one lot for each security or base currency.

Marginal Trading

It’s a type of the trading activity of the Client, when trading operations are carried out not on the real amount, which the Client has, but on the volume enlarged with the help of the leverage. "Initial margin" is a necessary amount of money on the trading account of the Client (for each trading instrument determined separately), which the Company requires to open a certain position.

Open position

In fact, it is the first stage of a complete transaction. If there is an open position, the client is obliged to carry out the opposite transaction of an equivalent volume to maintain the availability of funds above or at the level of the required margin.

Pending Order

The instruction placed by the Client, relating to opening or closing a position when a certain price level is reached.

Rate

The unit value of the base currency measured in the quote currency.

Short position

This term refers to the process of buying a trading instrument with the prospect of depreciation.

Swap

It’s the payment made by the Client for moving an open position over the night. The swap value can be measured both by positive and negative values.

Complete Transaction

It’s a closed cycle, consisting of two trading operations. Operations are carried out on the same volume and represent either a purchase with subsequent sale or sale with subsequent purchase.

Credit

It is the provision of resources by the Company to the Client where the second party does not reimburse the first party immediately, thereby generating a debt.

Free margin

The amount of cash on the Client's trading account, which can be used to open new positions. Free margin is calculated as funds on the trading account of the Client minus the necessary margin.

Funds

Calculated current state of the Client's trading account, in order to calculate this current state, it is necessary to add the amount of the balance with the credit, then add the floating profit and subtract the floating loss.

Hedged margin

The Company needs a guarantee to open and maintain fixed (locked) positions. The guarantee is determined for each trading instrument separately.

Instruction to withdraw funds

It’s a Client’s command via a personal cabinet in respect of writing off funds from the Client's trading account. In fact, this is an order to withdraw funds to any account of the Client or his/her trustee.

Locked positions

They are long and short positions with equal volume, opening on the same trading instrument and referring to the same trading account.

Lot

It’s a standard value, indicating some amount of the base currency or any other asset.

Margin Call

It is the Company’s demand for an investor to be informed by auto alert of insufficient funds to continue the transaction. The Client, having received a warning, has the right to close or top up the Trading Account to continue. If the Client is inactive, the Company automatically completes the transaction.

Necessary Margin

It’s a necessary amount of funds on the Client's trading account required by the Company to maintain open positions.

Order Level

The order level is the price specified in the order.

Quotation

Information about the value of a trading instrument at a given time expressed with the help of Bid and Ask.

Request for Quotation

Request for quotation is an instruction, with the help of which the Client can receive the necessary quotation. This request cannot be considered as an obligation to complete a transaction.

Spread

It’s a difference between Ask and Bid, expressed in points.

Volume of trade

It is calculated by multiplying the number of lots by the volume of lots.

Trading Platform and Tools

Charting Tools

It is a graphical tool used to analyse market trends and patterns in the prices of securities.

Client’s Terminal

It is a modern financial asset of digital values that uses cryptography and has a huge library of options to trade like Bitcoin, Ethereum, etc.

Indicators

It is a statistical measure used to gauge market conditions and predict future price movements.

Server

Technical means as well as software installed on them that serve for the timely processing of Client orders, and for displaying actual information in real time (the content of the displayed information varies by the Company).

Trading Platform

It is a created software system used for trading financial assets, providing tools for order execution, market analysis, and account management.

User Interface (UI)

It is the visual and interactive elements of a software application that allow users to interact with the system.

Market and Trading Concepts

Base Currency

It is the first currency listed in a currency pair, against which the second currency (quote currency) is valued.

Indicated quotation

The price of a trading instrument, at which the Company does not undertake to perform the Client's instructions received with respect to the trading instrument.

Leverage

It is the use of borrowed capital to increase the potential return on an investment. The Client is the party who borrows funds and understands all risks.

Operation Day

It is a day on which trading is conducted in the financial markets: Monday-Friday, 9 am- 6 pm (GMT-0).

Client’s Terminal

It is a modern financial asset of digital values that uses cryptography and has a huge library of options to trade like Bitcoin, Ethereum, etc.

Technical Analysis

It is the study of past market data, primarily price and volume, to forecast future price movements.

Swap

It’s the payment made by the Client for moving an open position over the night. The swap value can be measured both by positive and negative values.

Fundamental Analysis

It is the method of evaluating a security by examining related economic, financial, and other qualitative and quantitative factors.

Floating Profits and Losses

It is unrealized gains or losses on open positions, which will only be realized once the position is closed.

Indicated Quotation

It is a price quote given as an estimate, subject to confirmation before execution.

Non-market quote

A quotation that occurred as a result of an error and meets one of the following conditions:

  1. price return within a short period of time to the initial level with the formation of a price gap;
  2. the absence of a rapid price movement before the appearance of this quotation;
  3. the absence of macroeconomic events and / or corporate news at the time of its appearance, which have a significant impact on the rate of the instrument;
  4. the existence of a significant price gap.

Resistance Level

It is a price level at which rising security tends to find resistance as selling interest increases.

Volatility

It is the measure of the rate at which the price of a security increases or decreases for a given set of returns.

Working day

A working day is a weekday, i.e. every day, except Saturday and Sunday.