GLOSSARY

Below you will find the basic terms that will be useful to you in the process of trading. These terms are also used in the “Terms and Conditions” section, as well as in other documents regulating the relations between DeltaCapitals and its customers.

«Ask»

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

«Bid»

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

«Hedged margin»

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

Base Currency

It is the first currency in the currency pair. The client buys or sells the base currency for the quote currency.

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.

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.

Quote currency

It is the second currency in the currency pair with which to buy or sell a base currency.

Long position

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

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.

Crediting funds

The process of increasing the balance of the trading account by the amount of money transferred by the Client (or his trustee) in accordance with the details received from the Company and credited to the Company’s bank account.

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.

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.

Instrument

Currency pairs, resources (for example, metals), contracts for difference and other financial instruments, access to which is provided to the Client by the Company.

Client’s account

It’s a generic term, describing any account opened by the Client in the Company (including business, trading, partnership, investment accounts, etc.).

Client Terminal

It is an application, software product, or web application provided by a third party. This application provides connection to the server via the FIX protocol and serves to obtain information about the state of financial markets. In addition, the client terminal may but is not obligated to provide the Client with the service for conducting technical analysis in real time, opening and closing transactions on certain criteria, exhibiting, modifying and deleting orders or receiving messages from the Company.

Short position

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

Quotation

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

Credit

The process of replenishing the Trading Account by the Company to ensure the Customer’s trading activities.

Rate

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

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.

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.

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.

Necessary Margin

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

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.

Volume of trade

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

Operation day

Time determined by the following interval: weekday (Monday – Friday), 9am – 6pm (GMT-0).

Pending Order

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

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.

Floating profits, floating losses

Profits or losses on open positions calculated on the basis of current values of rates.

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.

Working day

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

Lot size

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

Order

The order is the Client’s command in relation to opening or closing a position, placing, removing or making changes to a pending order.

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.

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.

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.

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).

Specification of the contract

A contract specification is a summary of such main trading conditions as: spread, lot size, minimum trading volume, step of changing the trading volume, initial margin, margin for locked positions, etc.

Spread

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

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.

Trading platform

It’s a set of programs and technical means that display real-time quotes, which allow placing / modifying / executing orders and calculating mutual obligations that arise between the Client and the Company. The trading platform is divided into a server and a client terminal.

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.

Authorized Person of the Client

1. An individual who has reached legal age in accordance with the laws of the country of his/her citizenship or/and his/her tax residence. The authorized person of the Client cannot be a citizen and (or) tax resident of those countries on which territories the Company does not operate. The authorized person of the Client has the right on behalf of the client to enroll or receive funds from the Client’s trading account.

2. A legal entity or any other organization formed according to the legislation of a particular country (the states on which territories the Company provides its services are considered) called on behalf of the Client to credit funds to the Client’s trading account or receive funds derived in any way from the Client’s trading account.

Order Level

The order level is the price specified in the order.

Security

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

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.

QUESTIONS?

Feel free to ask your personal manager or send an email to team@delta-capitals.com.