FXSALT TERMS OF BUSINESS

TERMS & DEFINITIONS

A
‘Abnormal Market Conditions’ — ‘Rapid Market’ or ‘Thin Market’.

‘Account History’ — a register of completed transactions, balance operations and cancelled orders in Customer’s account.

‘Ask’ — the price at which a seller or a market maker is willing to accept for a traded instrument, also known as the offer price; a price for establishing an open Buy position.

‘Available Margin’ (‘Free Margin’) — a rest of funds in Customer’s account with the deduction of margin, floating profit/loss and rollovers summary.

B
‘Balance’ — a summarized financial result of all funds deposited in and withdrawn from Customer’s account and of all closed positions in Customer’s account.

‘Bid’ — the price at which a seller or a market maker is willing to buy a traded instrument; a price for establishing an open Sell position.

‘Buy Limit’ — a pending order for establishing an open Buy position in Customer’s account in the event the price on the specified instrument falls to the specified level; can be only executed at the Ask price and placed below the current Ask price of the specified instrument.

‘Buy Position’ — an open position that represents expectation that market price shall increase. For example, buying the base currency against the quote currency or buying a contract for differences on an underlying security rate.

‘Buy Stop’ — a pending order for establishing an open Buy position in Customer’s account in the event the price on the specified instrument rises to the specified level; can be only executed at the Ask price and placed above the current Ask price of the specified instrument.

C
‘CFD’ (Contract for Differences) — an object of electronic transaction based on the price fluctuation of an underlying asset (for example, stock or futures contract).

‘Chart’ — diagrammatic representation of historical quotes in the form of line, bars or candlesticks.

‘Client Log—file’ — a text file located in the folder MetaTrader4/Logs and used for recording all requests of client terminal; it is created in the form of separate daily files.

‘Client Terminal’ — the MetaTrader 4 program of version 4.хх designed for Customer trading, exercising supervision over Customer accounts, obtaining real—time and historical quotes, news and other market information that Company may have made available to Customer; also commonly used for technical analysis, automated trading by Expert Advisors and for Customer feedback via internal mail system.

Close’ — a request or instruction for closing a specified position at the current market price.

‘Close By’ — a request or instruction for closing the two locked positions on the same instrument.

‘Commission’ — an amount of service payments charged to Customer’s account.

‘Company’ — FXSALT, a dealer in foreign currencies, bullion, contracts for differences and futures registered at British Virgin Islands

‘Company website’ — FXSALT website at www.fxsalt.com.

‘Contract Details’ — parameters of an instrument specified by Company for Customer trading and published at Company website.

‘Currency Pair’ — traded instrument based on the change of the value of one currency against another currency.

‘Customer’ — a physical or juridical person, a signatory of Customer Agreement with Company.

‘Customer Account’ (Account) — Customer’s personal system register of its transactions, orders and balance operations.

D
‘Data feed’ — a stream of quotes in Company MetaTrader 4 trading platform.

‘Dealer’ — Company’s employee responsible for accepting Customer requests, executing Customer orders and for carrying out the liquidation of Customer open positions in the event of Stop—Out.

‘Dispute’, Complaint, Claim — the event Customer believes that Companys’s action or inaction is erroneous or contradictory to these Terms or/and to Customer Agreement, and vice versa.

E
‘Expiry’ — an instruction for cancellation of pending order at specified time and date.

‘Expert Advisor’ — a program written in MQL4 (MetaQuotes Language 4) and executed by client terminal for the purpose of automated trading in Customer’s account.

‘Equity’ — a net worth of funds in Customer’s account.

‘Explicit Error’ — an event the position opening or closing price significantly differs from the market price being actual at the moment of execution; an event the execution of Customer’s order or request is inconsistent with its order or request by general meaning.

F
‘Floating Profit/Loss’ — a difference value between Customer account’s equity and balance.

G
‘Gap’ — significant difference between the two consecutive quotes; may been shown on charts as a blank field between bars or candles when the time period between the two quotes covers the bar’s or candlestick’s close time.

H
‘Hedged margin’ — Company margin requirements for maintaining locked positions.

I
‘Initial Margin’ (Margin) — Company’s requirements for a security collateral for opening a position.

‘Instant Execution’ — a request execution type that means all quotes shown in client terminal may be accepted by Company for Customer’s trading with no preliminary requests for quotes.

L
‘Leverage’ — transaction size/margin ratio; for example, the 1:100 leverage shall mean that Customer is required to have 1% of transaction size in its account as a security collateral (i.e. margin).

‘Login’ — Customer account’s unique identification number.

‘Locked Position’ — a position consisting of equal long and short positions on the same instrument; locked positions require 50% of summarized margin for both positions.

‘Lot’ — a transaction size unit in MetaTrader 4; with reference to currency pairs 1 lot is equal to a contract on 100’000 base currency units; with reference to stock CFDs 1 lot is equal to one unit of an underlying security.

‘Lot Size’ — an amount of base currency units or underlying asset units specified by Company contract details as a transaction size per one (1.0) standard lot.

M
‘Margin’ — a summarized value of account’s funds reserved as a security collateral for maintaining Customer’s open position in accordance with Company’s Margin Requirements.

‘Margin Level’ — an equity/margin percentage ratio.

‘Margin Trading’ — a customer trading service utilizing the leveraged technique that provides Customer with ability to make transactions exceeding its account’s deposit.

‘Market Opening’ — the time when instruments become available for Customer trading after weekends, holidays, regular closing intervals or server downtimes.

‘Market Order’ — an electronic instruction for opening a position in Customer’s account at the current market price.

‘MetaTrader 4’ — a software platform designed for online trading; consists of: MetaTrader 4 Client (‘client terminal’), MetaTrader 4 Server (‘server’), MetaTrader 4 Data Center (‘data—center’), MetaTrader 4 Multiterminal (‘multiternminal’), MetaTrader 4 Mobile, MetaTrader 4 Smartphone; it is a technological basis of AM’s customer trading services.

‘Modify’ — a request for modification of pending order’s level; a request for placement, cancellation or modification or ‘Stop Loss’ or ‘Take Profit’ levels on an open position or pending order.

‘Multiple Close By’ — a request or instruction for closing all locked position in Customer’s account.

N
‘Normal Market Conditions’ — antithesis to ‘Rapid Market’ and absence of market data errors.

O
‘Open Position’ — a contract for buying or selling an instrument being in force in Customer’s account; it is the first part of a complete transaction and an obligation for making an equal counter transaction afterwards; it is also treated as Customer’s obligation to satisfy Company’s Margin Requirements and to maintain, without notice or demand from Company, a sufficient account balance at all times to continuously meet Company’s Margin Requirements and the equity/margin minimum ratio specified by Company (for example, a minimum ratio of 50%).

‘Order’ — an electronic instruction for opening or closing a position in Customer’s account on a specified instrument in the event its price reaches the specified level.

‘Order Level’ — a price specified by Customer in order placement request as an instruction for opening a position in Customer’s account at this price under condition determined by order’s type.

P
‘Pending Order’ — an electronic instruction for opening a position in Customer’s account in the event the price of a specified instrument reaches a specified level; Customer is provided with ability to use pending orders of following types: Buy Limit, Sell Limit, Buy Stop, Sell Stop.

‘Platform Time Zone’ — a time zone the AM server is synchronized with; a time zone which is used for recording any events into the server log—file. MetaTrader 4 Company is currently synchronized with London time (GMT+0; daylight saving time — GMT+1).

‘Point’ — a minimum of the price change; for example, 0.0001 for EURUSD, 0.25 for #ZCXX.

‘Price’ — 1) a two—way quote; consists of Bid and Ask prices; 2) position opening or closing price; 3) order level;

‘Close Price’ — a position closing price.

‘Open Price’ — a position opening price.

‘Price Gap’ — an event the current Bid price is above the previous Ask price and vice versa.

Q
‘Quote’ — an electronic message about the current price displayed in Client Terminal; consists of demand price (Bid) and supply price (Ask).

‘Quotes Base’ — the Company server’s archive file containing historical quotes.

‘Quoting’ — providing Customer with quotes that Company may accept for buying or selling instruments in Customer’s account.

R
‘Rapid Market’ — market conditions characterized by significant price changes in short periods of time frequently causing wide gaps between consecutive quote values. Commonly occurs immediately before and/or after important events such as:

key economic reports on any of G7 countries;
press conferences of G7 financial ministers or central banks’ chairmen;
central banks’ decisions on interest rates;
market interventions;
political or natural force majeur, war, terrorism etc.

‘Rate’ — 1) with reference to currency pair — base currency value in quote currency; 2) with reference to CFDs — underlying asset value.

‘Request’ — 1) an electronic instruction for opening or closing a position, placement, cancellation or modification of order, given by Customer via client Terminal; 2) a query for a two—way quote.

S
‘Sell Limit’ — a pending order for establishing an open Sell position in Customer’s account in the event the price on the specified instrument rises to the specified level; can be only executed at Bid price and placed above the current

‘Sell Position’ — an open position that represents expectation that market price shall decline. For example, selling the base currency against the quote currency or selling a contract for differences on an underlying security rate.

‘Sell Stop’ — a pending order for establishing an open Sell position in Customer’s account in the event the price on the specified instrument falls to the specified level; can be only executed at Bid price and placed below the current Bid price of the specified instrument.

‘Server’ — the program MetaTrader Server of version 4.xx, designed for transmitting requests of client terminals to dealers, sending news, quotes and execution confirmations to client terminals, and recording all messages related to customer trading process; it is a software tool for maintaining mutual liabilities between Company and Customer which are formalized in Customer Agreement, contract details and margin requirements.

‘Server Log—file’ — a text file generated by MetaTrader 4 server and used for recording all events related to customer trading and platform performance, including all dialogues between client terminals and dealers.

‘Session Gap’ — a price gap between the first quote of the current market session and the last quote of the previous market session.

‘Slippage’ — a parameter of Expert Advisor designed for setting up the maximum difference between the requested price and the dealer’s price acceptable to Expert Advisor for opening a position in Customer’s account; a difference between order’s price and the price of its actual execution.

‘Spike’ (Data Error) — an incorrect quote generated by server as a result of datafeed error; commonly looks like a significant price gap returning close to the previous level on the next price update with no signs of rapid market around. Company has discretion, but not the obligation, to remove such errors from its quotes database.

‘Split Close’ — a partial position closing; for example, closing 0.5 lots of 2.0 lots.

‘Spread’ — a difference between Bid and Ask price, evaluated in points.

‘Stop Loss’ — an order for closing a specified open position at specified level in the event the price moves in unfavorable direction; can be only executed at Bid price and placed below the current Bid price with reference to Buy positions; can be only executed at Ask price and placed above the current Ask price with reference to Sell postions.

‘Stop Out’ — a compulsory closing of Customer’s open positions by Company in the event Customer’s account does not satisfy Company’s Margin Requirements.

‘SWAP’ — an amount of overnight adjustments paid or charged to Customer’s account at 23.59 in the platform time zone, in accordance with values specified in contract details; it is a daily settlement for margin trading services.

‘Symbol’ — an object of electronic transaction, for example: currency pair, stock CFD, futures CFD; an instrument in MetaTrader 4 online trading platform.

T
‘Take Profit’ — an order for closing a specified open position at specified level in the event the price moves in favorable direction; can be only executed at Bid price and placed above the current Bid price with reference to Buy positions; can be only executed at Ask price and placed below the current Ask price with reference to Sell positions.

‘Thin Market’ — periods of low trading activities and amounts of quotes per time, as compared to normal marker conditions; for example, periods between 21.00 and 00.00 GMT and before Christmas holidays.

‘Ticket’ — an unique identification number of position, order or balance operation in Customer’s account.

‘Trailing Stop’ — a built—it option of client terminal designed for adjusting a Stop Loss order level automatically by a specified amount of points, if the favorable price motion exceeds this amount; it may only work with the client terminal connected to the server.

‘Transaction’ — an operation consisting of two equal counter trades in a specified instrument