Questions and Answers

Frequently asked questions with answers

Account Opening and Servicing

Unfortunately, the platform is not intended for exchange operations; it operates on leverage (up to 1:30) using the margin trading principle. Margin trading enables you to trade amounts much higher than your account deposit. Margin trading is used primarily for profit on speculative operations or for hedging currency risks.

We provide trading platforms for mobile devices running the iOS or Android.

Settlement activities are conducted on a daily basis and include all post-trade operations such as trade settlements, rollovers, volume commissions and daily P&L conversions and other end-of-day amendments (please refer to Overnight policy for related information on value date and overnights). Settlement procedure is applied at 21:00/22:00 GMT and is carried out automatically in the account's base currency. Account balance is updated on a daily basis after settlement procedure. Clients are able to track balance history in various reports through the trading platform in section Reports.

Depositing and Withdrawing funds, if trading account opened remotely

Yes you can. However, you will not be able to withdraw more than the unattached balance (free margin) of your trading account.

Furthermore, if you are withdrawing a large fraction of the available balance, please note that the risk of position closure due to insufficient margin will be increased.

Terminology

The difference between the BID price, at which you are able to sell an instrument, and the ASK price, at which you are able to buy it.

Spreads in traded instruments reflect the market, are floating, and dependent on the current state of markets, the degree of volatility and liquidity of a given instrument, and may include the bank’s and liquidity suppliers’ interest.

Swapping involves a carryover of any open positions on an account through settlement time if physical delivery of the relevant currencies needs to be avoided. This process is also known as a position roll, carry or overnight swap. At 09:00pm GMT (or 10:00pm GMT for Winter Time), a settlement procedure carries over open positions on the account to the next settlement date. The process simultaneously closes positions at the settlement price and opens equivalent positions on the next settlement date at the settlement price, +/- cost of carry in pips. These operations are referred to as rollover close and rollover open, accordingly, and may be viewed within the trading platform (Portfolio tab, Current Account Balance item). Clients may also see how the rollover affects them by checking the Positions item.

Carryover rates specified on the website are provided for reference only and subject to change from time to time.

Rates from liquidity suppliers are used for swapping. As a rule, these are based on the interbank market’s overnight rates but also account for supplier expenses and interest. Please note that settlement dates do not include weekends and holidays.

Spot markets are those that operate at the going market prices of financial instruments. The price is directly tied to the going rate, as opposed to futures and forward contracts.

Spot trading is trading directly at market rates given a predefined settlement date (also known as a value date) on the second business day following execution of the transaction.

The largest Forex market players that make up the differences in currency exchange rates are some the world’s largest institutions – central banks, commercial banks, and investment banks. This market is known as an interbank market because banks continually transact with one another on behalf of their clients. However, the number of other players is increasing at a high rate – the list now includes large international corporations, global asset managers, registered traders, international brokers, futures and options traders, as well as individual investors.

ECN is short for “Electronic Communications Network”. An ECN account provides direct market access for transacting with other market players.

A margin is the minimum coverage required in order to perform transactions.

This is a situation where margin requirements do not allow a client to increase open positions on their account. In this case, the client can only close existing positions or hedge them to reduce net exposure. Regardless of whether the margin call threshold has been reached, currently open positions will not be closed automatically. However, all bid/offer orders that might increase the total volume of operations will be cancelled.

If leverage use reaches or exceeds 200%, the Bank may (but is not obliged to) fully or partly reduce the volume of operations on the client’s account by closing current positions and/or opening reverses positions (if the client has selected the Partial Hedge feature**). By default, the system will close all open positions. If the client has activated the Partial Hedge feature, the system will automatically reduce the total volume of open positions to about 100% leverage use by opening reverse, or hedging positions.

ASK – the price at which a client may purchase a currency.

BID –the price at which a client may sell a currency.