Terms glossary

Margin

Margin is a performance guarantee that a certain percentage of funds must be invested as proof of the order.

Net value

That is, the actual balance shown in the calculation of the profit and loss of the unliquidated order will fluctuate with the profit and loss of the position.

Margin ratio

Net value÷used margin=Margin ratio. When the margin is less than 30%, the system will be forced to liquidate.

Usable Margin

Net value-used margin=usable margin

Overnight positions

All overnight orders must be paid at the rate specified by the company and displayed in the "terminal - trading" section of the trading platform after the settlement time of the next day.

Overnight interest settlement

The interest is deferred in accordance with the international banking practice, which will be calculated after the two Banks work. The following is the calculation of interest days of T+2:

a. On Monday, the trading position will be held until Tuesday, and the interest will be calculated from Wednesday to Thursday. The number of days is one day.

b. On Tuesday trading positions to Wednesday, the calculation is on Thursday to Friday interest, the number of days is 1 day.

c. On Wednesday trading positions to Thursday, counting the interest on Friday, Saturday and Sunday, the number of days is 3 days.

d. On Thursday trading positions to Friday, calculate the interest on Monday to Tuesday, the number of days is one day.

e.On Friday trading positions to next Monday, the calculation is on Tuesday to Wednesday of interest, the number of days is 1 day.

> so usually the customer holds the position on Wednesday and will charge three times the overnight interest.

Spread

Spread is the difference between the purchase price and the selling price offered in the trading platform. It is also the transaction cost of open position. The company will charge Spread cost when open position. The Spread is fixed in the normal fluctuation of the company, but when the product market is insufficient, we will adjust the Spread according to the fluctuation of the market.

Going Long/Going Short

The number of contracts that have not yet been used to hedge "buy up" contracts, known as "do more", is a long position. Selling contracts is short positions, also known as short positions.

Leverage ratio

Leverage refers to the ratio of the margin required to open a position to the value of the commodity contract. That is, contract value÷initial=leverage ratio of the commodity. London gold and silver leverage London approximately 1-250 times, please refer to the following examples of calculation of leverage: assuming that London gold for $1350 an ounce, 1 hand contract value of about $135000 (the latest quote price is $1350 / oz * contract unit 100 ounces = 1 hand contracts worth $135000), and the deposit for $1000 / hand, leverage and magnification of 135 times, which was 1:135.

Contract unit

London gold each lots contract unit is 100 ounces; The bank of London has a unit of 5,000 ounces per lots; Foreign exchange each lots contract unit is 100,000 reference currency.

Point

The lowest price change in a transaction is the point. In the case of the euro/dollar, if the euro rose from 1.2548 to 1.2549, the change would be a point.

Open position

Open position refers to the establishment of an order. If you predict that the price of a product will rise, you need to "buy" the position. If you predict that the price of a product will fall, you need to "sell" it. Market price clinch a deal "is based on the latest market price clinch a deal, but" they "can be set to clinch a deal price, when the market price to set prices, system will automatically take positions to clinch a deal.

Cover

To settle a previously bought (sell) deal by selling an equal number of contracts. The purchase order is to sell the bid for cover; Orders to sell positions are paid for cover.

Forced to cover

Trading account holder does not have enough available margin account, when the margin account arrived at or below 30%, the system will be for the account holder of the warehouse receipt to the most orders for the amount of loss for unwinding operation, until the deposit is higher than 30%.

The market price clinch a deal

Transactions with the latest quotation of commodities must be executed within the scope of the transaction. If the price of a commodity is so high that the price is beyond the scope of the transaction, the order cannot be executed.

Position

The netted total exposure in a given currency. A position can be either flat or square (no exposure), long (more currency bought than sold), or short (more currency sold than bought).

Order type

An order is a trader's instruction to execute a transaction. The client terminal includes the following types of orders: The market price clinch a deal, pending order, stop loss/profit, and track stop loss.

Pending Order

The pending order means that the customer can set an expected open position price on his own. When the market quotation reaches the price set by the customer, the system automatically executes the transaction instruction. The list order is valid for the maximum period of a trading week. The pending order is divided into the following four types:

1.Buy limit: the price is expected to fall before hitting a certain price, then the rebound will continue to rise, and when there is more room for profit, you can set a price limit. When the buying price of the future is equal to the set of the registered transaction price, automatically buy open position. Setting the transaction price of London gold should be at least 200 points below the current price.

2.Sell limit: it is expected that the price will rise to a certain price first, then the rebound will continue to fall, and there will be more profit space, so the price limit can be set up. The open position is automatically sold when the future selling price is equal to the set price. Setting the price of London gold is higher than the current price of at least 200.

3.Buy Stop: it is expected that the price will continue to rise after a certain price rise, so that the Stop loss can be established. When the buying price of the future is equal to the set of the registered transaction price, automatically buy open position. Setting the transaction price of London gold is higher than the current price at least 200 points.

4.Sell Stop: it is possible to establish a stop-loss selling order after falling through a certain price. When the sale price in the future is equal to the set list.

When the price is sold, open position is automatically sold. Setting the transaction price of London gold should be at least 200 points below the current price.

Stop-loss price

The stop loss price is a protection mechanism, which means that when the loss of a certain investment reaches the set stop-loss price, the system automatically executes the order to cut the warehouse in time to avoid causing a bigger loss. The aim is to limit the loss to a smaller range even if the investment is misdirected.

Trailing Stop

It is the stop loss that follows the latest price setting a certain distance and is triggered only when the price changes in the favorable direction of the order. Tracking stops will not move in either direction, but will only move in the direction of profit.