Trading Conditions

FAQ

1. What is the access to the stock market at RoboForex?

   When a client’s order for buying and selling stocks is submitted to RoboForex, a corresponding order is sent to the execution venue. When the order is filled on the actual execution venue, the investor’s trading platform would be updated accordingly.

   The key benefit of access to the stock market at RoboForex is that orders are done based on the last done price, based on the price/time priority (not Bid/Ask prices), and that orders could be reflected on the chart.

   Prices shown on the platform also mirror the cash market prices, which provide clients with full transparency and the ability to trade at market prices with no additional spreads.

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2. Example of trading stocks

   1. Choose some particular asset

   You're interested in trading Facebook stocks. The price is currently 116.88/117.03 USD.

   2. Sell or buy

   You choose to buy 50 stocks at the offer price 117.03, because you believe the market will rise (otherwise you could sell at the bid price 116.88 if you believe the market will fall).

   3. Commission and margin

   In this example, your total exposure is 50 stocks x 117.03 = 5,851.5 USD.

   There is a commission: 0.02 USD per stock, minimum = 2 USD.

   Therefore, the commission for opening a position = 2 USD.

   The margin required on Facebook stocks is 5%, so to open this trade you would need to have 5,851.5 USD x 5% = 292.57 USD on your account (or the equivalent in other currency).

   4. Closing your trade

   Over the course of the day, the market rises, and Facebook stock price is 132.52/132.67 USD. You choose to close your trade at the price 132.52.

   The commission for closing position = 2 USD.

   5. Calculating profit/loss

   Profit / loss is calculated based on the difference between your opening and closing prices, in points.

   In this case: 132.52 – 117.03 = 15.49 USD.

   You bought 50 stocks, and the market moved in your favor.

   Therefore, your gross profit is 50 * 15.49 = 774.5 USD.

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3. What is a Financing Fee?

   At the end of each trading day, your open trading positions may be subject to a charge called a Financing Fee. The Financing Fee is calculated based on the notional value. The Financing Fee value, on which interest is based, may change from time to time without a prior notification to clients.

   Financing fee = price х volume х Financing fee % /100/360

   Twitter, 100 shares, buy, Financing fee = 25 х 100 х -7% /100 /360 = -$0.49

   Please be advised that Triple Financing Fee is applied on Friday.

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4. Order Types and definitions used in the platform

   Market Order
   Buy or sell order at a current market price. Best execution price guaranteed by execution venue. The Requested Order price is not guaranteed.

   Buy Limit Order
   Pending order to buy below the current market price. Trigger condition: the current Ask price is less or equal to declared order price. The Requested Order price is guaranteed. The Filled price better or equal to the Declared Price.

   Buy Stop Order
   Pending order to buy above the current market price. Trigger condition: the last price is higher or equal to declared order price. The Requested Order price is not guaranteed.

   Sell Limit Order
   Pending order to sell above the current market price. Trigger condition: the current Bid price is higher or equal to declared order price. The Requested Order price is guaranteed. The Filled price is better or equal to the Declared Price.

   Sell Stop Order
   Pending order to sell below the current market price. Trigger condition: the last price is less or equal to the Declared Order price. The Requested Order price is not guaranteed.

   Stop Loss Order
   Stop order to close a deal. Trigger condition: the last price reaches the SL level. The Requested Order price is not guaranteed.

   Take Profit Order
   Limit order to close a deal. Trigger condition: the current Bid (for BUY deals) or the current Ask (for SELL deals) prices reach the TP level. The Requested Order price is guaranteed. The Filled price is equal or better then declared in TP.

   Stop Out Order
   Stop order to close a deal. Trigger condition: Margin level less or equal to Stop Out Level.

   Definitions

   Order Type - Market, Limit, Stop, Stop Loss, Take Profit, Stop Out.
   Order Status - Active, in execution (filling), filled, cancelled, rejected.
   Declared Order Price – the order price before the order triggered for execution.
   Filled Order price – the order price after the order has been filled.
   Last price – the price of the last executed transaction on the execution venue. Stock instruments indicate the last price on the financial chart.
   Deal – the result of an executed order. Any filled order opens or closes a deal.
   Deal status – open, closing, closed, trade.

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5. Which Execution Rules exist in the platform?

   1. Stop or Limit order becomes active once created. Only active orders can be updated/canceled during open trading hours. All active orders can be found in "Active Orders" tab of account summary in the client’s trading platform.

   2. Any order, satisfying one of the conditions below, changes the status to "Filling":

      2.1 Market order submitted;
      2.2 Stop Loss, Take Profit, Stop Out orders once created;
      2.3 Stop, Limit order declared price triggered.

   3. All orders with the status "Filling" can be found in Active Orders tab of account summary in the client’s trading platform until status changed by the system to "filled" or "rejected".

   4. All orders with the status "Filling" automatically cancelled by the system at the end of every day.

   5. When an order is executed, a related Deal is opened or closed at the Filled order price and the order status is changed to "filled".

   6. When an order canceled by user or rejected by the system, the status of this order is changed to "canceled" or "rejected" accordingly.

   7. All "filled", "cancelled", "rejected" orders can be found in Trade Blotter tab of account summary in the client’s trading platform.

   8. All orders are executed only during instrument trading hours. Order management after and before trading sessions: place and modify Take Profit, Stop Loss, Limit, and Stop even when the market is closed, and they will be executed after the trading session starts. Trading hours:  09:30 - 16:00 (EST).

   9. Commission generated by a Filled order increases the related deal commission every time when the deal is opened and closed.

   10. In case the Account Margin Level is less or equal to 20% (Stop Out Level), the system sends Stop Out order(s) to close all opened deals. In case a Stop Out order is cancelled by the execution venue and the Account Margin Level is still less or equal to Stop Out level, the system sends Stop Out order(s) again.

   11. Stop Loss, Take Profit, Stop Out or Market orders to close a deal with the status "Filling" change the related deal status to "closing". When the related order is "filled", the deal becomes "closed". In case the related order is rejected, the deal becomes "open" again.

   12. All "open", "closing" and "closed" deals are indicated in Positions tab of account summary in the client’s trading platform.

   13. At the end of day based on server time, all closed deals are converted into account currency and become trades in the client’s trading platform.

   14. All trades along with balance transactions (Deposit/Withdraw) and cash dividends can be found in History tab of account summary in the client’s trading platform.

   15. RoboForex relies on the third party execution venues for prices and available volume, therefore execution of the client’s orders will depend on the pricing and available liquidity of the execution venues. Although Roboforex executes all orders placed by the clients, it reserves the right to decline an order of any type or order could be declined by the execution venue.

   16. Orders sent near the opening of trading. Please note that markets can be especially volatile near the opening of a trading session, with prices and available volume often changing rapidly and with data feeds from various markets potentially being slow or temporarily unavailable. RoboForex cannot guarantee that orders sent near the opening of trading necessarily will receive the best posted price. You may want to consider the use of limit orders at the opening, although market orders should be used if you want a higher certainty of getting a fill.

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6. Which Corporate actions exist in the platform?

   Long Positions
   A client holding a long position on the ex-dividend date will receive the applicable dividend in the form of a cash adjustment, credited to the relevant trading account. Transaction can be found in History Tab in theclient’s trading platform - "Cash Corrections".

   Short Positon
   A client holding a short position on the ex-dividend date will be charged the applicable dividend in the form of a cash adjustment, debited from the relevant trading account’s free equity. Transaction can be found in History Tab in the client’s trading platform - "Cash Corrections".

   Dividends procedure
   Cash dividend transactions debit/credit account balance on ex-dividend day at 15:00 server time. Transaction can be found in History Tab.

   In case of Long position Cash Dividend Amount is:

   Dividend per stock * Volume

   where:
   Volume = Contracts * Contract size

   In case of Short position Cash Dividend Amount is:

   (-1) * Dividend per stock * Volume

   where:
   Volume = Contracts * Contract size

   Stock splits
   In the event of a stock split, the appropriate adjustment on the client’s position shall be reflected on the trading account in accordance with the announced stock split.

   Split procedure
   Splits procedure runs on the server every day at 15:00 server time. During the procedure all active pending orders (Limit, Stop) for related stock will be removed.

   Weighted average price and sum volume are calculated separately for all open deals in short and all open deals in long of an instrument and are assigned as new open price and new volume for the deal with maximum volume for long and short deals accordingly. In case a deal receives fractional stocks, such stocks will be liquidated for cash transaction – "Split cash correction". Volume of other deals for related instrument will be reset to 0 and moved to History Tab.

   Fractional stock adjustment
   In the event a corporate action results in a fractional position, RoboForex reserve the right at its own discretion to credit the outstanding fractional component as a cash adjustment to be credited to the client’s trading account.

   Other Corporate Actions
   In the event of a stock being de-listed, merged, acquisitioned, tendered, spinned-off, the client’s position will be closed at the last market price traded.

   RoboForex bears no responsibility for notifying the client regarding announcements of corporate actions.

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7. How to open an account?

   1. If you already have a RoboForex Members Area, then log in and select "Open a Stock-account" or "Open a Demo Stock-account" from the "Live Account" menu. Fill in all fields and click "Continue" button.

   2. If you are not a RoboForex client yet, then you will have to register a Members Area. To do so, follow the link. Fill in all required fields of the registration form, get access to the Members Area, and follow the instruction in par. 1.

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8. How can I log in to the trading platform?

   Umstel trading platform is available at the following address: https://roboforex.umstel.com/. To log in to the platform, please, enter your login (E-mail you used to register your Members Area) and password, which you used to register your first Stock-account (password from Umstel user account).

   These credentials are always used in order to log in to the platform even if you have several Stock-accounts. You can select an active account directly in the platform — in the right upper corner of the workspace.

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9. How to start trading?

   To start trading, first of all you need to select the instrument to be shown on the chart. To do so, click the ticker of the instrument that has been already opened on the chart (e.g. AAPL for Apple Inc.) and you will get access to the full list of stocks. For every instrument, you will see current Bid and Ask prices in the top center area of the chart.

   You can create a new order either by clicking one of the prices displayed on the chart, or by clicking "New order" button on the toolbox. Select the necessary settings in "Order" tab and click "Place Order" button.

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10. How to subscribe to the trading ideas service?

    On the website at https://roboforex.tradingidea.com/ideas , you can find trading signals, ideas, and traders' strategies. Log in to the service using your Umstel user account, click the chosen idea name and choose "Subscribe" on the right side of the screen. In case you want to be notified about all author's signals, click "Follow" button.

    More detailed instructions on the trading ideas service you can find in our video: Use Trading Ideas.

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