The Main Definitions of Online Trading

Equity - means the secured part of the Client’s account, considering the opened positions, bound with the Balance and Floating Rate (Profit/Loss) by the following formula: Balance + Floating rate + Swap, i.e. the funds on the Client’s account less the current loss for the open positions, plus the current earnings for the open positions.

Free Margin - means the funds which are not used for the security of the opened positions. It is calculated by the formula: Free Margin = Equity - Margin.

Margin - means the amount of guarantee required for opening a position, which is equal to 1% (in the case of a 1:100 leverage) of the contract amount for the position opened.

Margin Level – is a characteristic of the state of the account. It is calculated by the formula: (Equity / Margin)*100%.

Base currency - means the currency in which the account, the balances, the commission charges and payments are nominated and calculated.

Balance - means the overall financial result of all the completed transactions and operations concerning depositing/withdrawal of funds from the commercial account.

Account History - means the list of completed transactions and non-commercial operations on the commercial account.

Settlement Currency - is the currency of the depositing/withdrawal operations.

Client - is the natural or legal person concluding conversion arbitrage operations with the Company, according to the quotations offered by the Company.

Client’s Terminal - means the software product Trader, being used, on which the Client can receive information about bidding on financial markets (within the scope determined by the Company) on a real-time basis, carry out technical analysis of markets, perform commercial operations, issue/amend/withdraw indents and receive communications from the Company.

Company - refers to the legal person or company. that provides the settlement of bargains and accounts with the Client, in accordance with the present Agreement.

Client’s Log File - refers to the file created by the client’s terminal, which registers all the inquiries and orders sent by the Client to the Dealer, with accuracy to the second.

Server’s Log File – means the file created by the server that registers all the inquiries and orders sent by the Client to the Dealer, as well as the results of their processing, with accuracy to the second.

Margin Trading - means performing arbitrage operations with currency contracts that lead to opening positions, the amount of which is several times larger than the variation margin.

Initial Margin - means the amount of the guarantee required by the Company for opening a position.

Required Margin - means the cash security required by the Company for the purpose of maintaining the open position(s).

Nonmarket Quotation - refers to the quotation satisfying all the following requirements: the presence of a wide price gap; quick return of the price to the initial level leading to the price gap; the absence of fast price movement preceding the emergence of this quotation; the absence of macroeconomic or corporate events having substantial influence on the instrument’s rate at the time of emergence of this quotation.

Non-commercial Operation - means an operation dealing with depositing (withdrawing) funds to/ from the commercial account or an operation that deals with providing or repaying credit.

Normal Market Conditions - refers to the state of the market satisfying all of the following requirements: the absence of wide gaps in the process of providing quotations to the trading platform; the absence of fast price movement; the absence of wide price gaps.

Normal Market - see "Normal Market Conditions".

Scope of a Trade Operation - refers to the product of the number of lots multiplied by the lot size.

Order – refers to the Company’s Client’s command to open or close the position after the price reaches the indent level.

Open position – means the result of the first phase of a complete transaction. As a result of opening a position, the Client undertakes obligations: to perform an opposite operation of the same volume; to maintain the equity at the level of no less than 10% of the margin required.

Opening the Market - means the resumption of trading operations after weekends, holydays or an interval between trading sessions.

Deferred Order - means the order of a Client to the Dealer to open a position after the price reaches the indent level.

Complete Transaction - consists of two opposite trading operations of the same volume (opening a position and closing the position): a purchase followed by selling or selling followed by a purchase.

Quotations Flow - means the sequence of quotations for each instrument received at the trading platform

Instant Execution - means the mechanism of providing quotations to the client without prior request, when the client sees the Dealer’s quotations flow in a real-time mode, , he or she can at any time give an order to perform a trading operation.

Point - is the unit of a rate’s low order.

The Company’s Business Hours - means the period of time during the workweek when the trading terminal of the Company carries out transactions with standard currency contracts. The exceptions are normalrest days and holidays, periods of change in the routine of the Company, as well as the time when the Clients cannot be served for technical reasons. In these cases the Company must take all the possible measures to advise the Client of the changes in the normal work routine and give him or her an opportunity to eliminate the risks resulting from these changes.

Size of a Lot - means the amount of base currency in each lot defined in the contracts’ specification.

The Developer – means “MetaQuotes Software Corp.” company, the developer of the trading platform.

Swap - means the amount of money knocked off or deposited to the Client’s account for prolongation (postponement) of a position until the next day.

Server - means the software product Trader Server, with which the Client’s orders and requests are processed; the Client is provided information about bidding at financial markets on a real-time basis; the respective obligations of the Client and the Dealer are offset, and the terms and restrictions are observed.

Adviser - means the commercial account control algorithm in the form of a program , which sends requests and orders to the server using the client’s terminal.