Basic Concepts

Abnormal Market Conditions – a “Thin” or “Fast” market.

Account History – all completed Transactions and deposit/withdrawal operations on the Trading Account.

Account Type – the terms of the Trading Account. The types of accounts offered by the Company are listed on the Company site. The Client cannot change the type of account once it has been created.

Ask – purchasing price of a trading instrument. At the trading terminal labeled as “buy”.

Balance – the total financial result of all completed Transactions and deposit/withdrawal operations on a Trading Account.

Base Currency – the first currency in a currency pair which the Client may buy or sell for the Quote Currency.

Bar/Candle –a feature of a price chart that shows the opening and closing prices, as well as the lowest and highest prices for a defined period of time (for example, 1 minute, 5 minutes, a day, a week).

Bid – selling price of trading instrument. At the trading terminal labeled as “sell”.

CFD (Contract for difference) – an object of trading operation, based on the rates change of the basic asset (fundamental asset of the contract for difference), it may be futures, shares, commodity, precious metal, stock index etc.

CFD expiration – expiry date of the CFD contract, dividends pay day.

Chart – visual representation of the change in prices over a period of time. For the period of bars/candles represent:

• a) Bar/Candle high is the highest Bid;
• b) Bar/Candle low is the lowest Bid;
• c) Bar/Candle close price is the last Bid;
• d) Bar/Candle open price is the first Bid.

Client – an individual, who has an agreement with the Company for performance of trading transactions on conditions of marginal trading.

Client Agreement – an agreement between the Company and the Client, which together with the other Regulations located in the "Regulatory Documents" on the Website, governs all conditions pertaining to the Company's relationship with the Client.

Client’s account – any account opened by Client at the Company, personal, trading, partners accounts, trader’s accounts, investment and other types of accounts.

Client’s external account – bank account or/and digital account of the Client.

Client Terminal – a program used by the Client to obtain real-time financial information (the content of which is defined by the Company), conduct technical analysis; execute trading transactions, place/modify/delete Orders.

Client Terminal Log-File – the file created by the Client Terminal which records all Client Requests and Instructions to the Company with accuracy to the second.

Closed position – the second part of a fully completed Transaction.

Company’s account – bank or/and digital account of the Company, as well as account of the Company at the processing center.

Contract specification – main trading conditions (spread, lot amount, minimal volume of trading operations, initial margin etc.) for each financial instrument.

Counterparty – liquidity provider, quotes provider, news provider as well as other organizations, that the Company collaborates with in order to provide the possibility to perform trading and non-trading operations for Client.

Credit – crediting funds on the Client’s account at the Company’s cost for performing trading operations. Withdrawal of these funds is impossible.

Credit of funds – crediting monetary fund’s on Client’s account, transferred and arrived on Company Account.

Currency pair – the ratio of one currency to another, the quotation of the relative value of one currency unit against the unit of another currency.

Day Order – a Pending Order valid for one day only, which expires and is automatically deleted at the end of the trading session.

Debiting the account – debiting the Client’s account and transferring funds to Client’s account that indicated at the “Order for funds withdrawal”.

Dispute – shall mean: 1) a conflict arising when the Client believes that the Company, as a result of any action or failure to act has breached one or more of the Regulations of trading transactions; 2) the Company believes that the Client as a result of any action or failure to act has breached one or more of the Regulations of trading transactions; 3) when the Client makes a trade on an error Quote (Spike), or before the first Quote comes to the Trading Platform at Market Opening, or on a Quote received by the Client due to Manifest Error on the part of the Company or software failure on the Trading Platform.

Electronic payment system – payment system, operating with electronic monetary funds.

Emergency Situation – an unforeseen situation whereby a discrepancy arises between the terms or conditions of the contracting agent in regard to dealings with the Company, which may be a result of hardware or other technical failure or a change in market conditions.

Equity – the amount on the account calculated by the following formula: Balance + credit + Floating Profit /Floating Loss + Swap.

Fast Market – a condition of a stock market, characterized by high level of volatility in short period of time. Frequently followed by price gaps. Normally it is a result of one or few important news:

• a) release of influential macroeconomic indicators for the global economy;
• b) decisions by central banks on interest rates;
• c) press conferences and statements by central banks officials, heads of state, financial ministers or other significant announcements;
• d) government intervention in the currency market;
• e) terrorist attacks of great national impact;
• f) natural disasters leading to the declaration of a state of emergency (or comparable measures) in the affected regions;
• g) war or other significant military actions;
• h) political force majeure: dismissal or appointment (including election results) of top government officials;
• i) other events which cause significant price movements.

Floating profit/loss– unrecorded profit/loss on Open Positions based on current prices.

Force majeure – unforeseen and unpreventable events such as:

• a) nature disaster;
• b) war;
• c) terrorist attack;
• d) actions taken by the legislative or executive branches of government;
• e) computer hacker attacks and other illegal actions directed towards the Company.

Free Margin – available funds on the Trading Account which may be used to open a position. It is calculated as Equity minus Necessary Margin.

Fully completed transaction – consists of 2 opposite trading operations with equal volume (open an order and closing an order): buy order with further selling or sell order with further buying.

Identification information – passport details, indicated at Client’s application form.

If-Done – Stop Loss or/and Take profit orders, activating only after pending order execution.

Indicative quote – currency quote, which does not exist on the market at one exact moment. Orders at that quote cannot be accepted.

Initial Margin – the percentage of the purchase price the Client must pay to Open Positions. The requirements for each Instrument are covered in the Trading Terms.

Instant Execution– the mechanism of providing Quotes to the Client without prior Request. Because the client sees Quotes in real time, he may make a Transaction at any moment.

Instruction – an Order of the Client to the Company to open/close a position or to place/modify/delete an Order.

Instrument – trading instruments, represented at specification of company’s contracts.

Leverage – It is the ratio of monetary fund’s, of the Сlient to the borrowed funds of the Company.

Liquidity supplier– company's partner, where client's positions actually hedged.

Long position – a position held with the expectation that the asset will rise in value. In currency trading it means buying the Base Currency and selling the Quote Currency.

Lot – a standard amount of a commodity or number of units of a currency pair.

Manifest Error – an error by the Company characterized by the opening or closing of a position or the execution of an Order at a price which significantly differs from the price for the given Instrument in the stream of Quotes at the moment of Transaction, or any other Company action with respect to prices that significantly differ from the market prices.

Margin Level – the ratio of Equity to Necessary Margin. It is calculated as (Equity/Necessary Margin)*100%.

Marginal trading – realization of trading operations and using leverage. The Client has an opportunity to make orders on the amount, greater than his available funds.

Market Opening – the time when the market opens after weekends, holidays or trading session time gaps.

Maximum deviation – parameter expressed in Pips/Points in the "Open/Close position" window of the Client Terminal.

Necessary Margin – the margin required by the Company to maintain Open Positions. The details for each Instrument are specified in the Trading Terms.

Normal market – “Normal Market Conditions”.

Normal market conditions – market conditions, when it satisfies each of the following conditions:

• a) no considerable breaks in the flow of quotes;
• b) low volatility;
• c) no large price gaps.

Notification of crediting of monetary recourses – notification, sent through Client’s personal account at the Company’s web-page, in purpose of crediting Client’s account.

Opened orders – buy (sell) order, not covered by opposite sell (buy) contract.

Order – a Client instruction to the Company to open or close a position when the price reaches the level of the Order.

Order for funds withdrawal – an order given from the Client’s Personal account page at the company’s web page, on purpose of debiting Client’s account and transaction of funds to Client’s external account.

Order level– the price indicated in the Order.

Passive trading account – Client’s not trading account, where in six months period had been no operations opened, pending orders, nor had non-trading operations been opened.

Payments Operations – deposits or withdrawals to or from the Trading Account, loans or loan repayments.

Pending Order – a request from the Client to the Company to open a position once the price has reached the level of the Order.

Personal account – the Client’s personal page on the Website containing the Client’s contact details, the history of Payments Operations (deposits/withdrawals) as well as other reference information.

Personal account page – service, delivered to the Client, who has personal trading account at the Company, and designed for Client’s identification, keeping orders records for trading operations, as well as for placing reference information and work with accounts.

Personal bank account – non-trading Client’s account opened when registering “Personal account” at the Company’s web page and is Client’s subaccount for prepayment.

Point – the numerical value of the last, or right-most, number of a Quote.

Price gap – shall mean the following:

• a) current Bid Quote is higher than the Ask of the previous Quote;
• b) current Ask Quote is lower than the Bid of the previous Quote.

Price Gap at Market Opening shall mean the following:

a) the first Bid of the trading session is higher than the last Ask price of the previous session;

b) the first Ask of the current trading session is lower than the last Bid of the previous session.

Price prior to Spike – the closing price of the minute bar prior to the minute bar with the Spike.

Quote – the price of one currency quoted in terms of another (Bid/Ask).

Quote Currency – the second currency in a currency pair which can be bought or sold for the Base currency.

Quotes Base – information about the Streaming Quotes.

Quoting – the process of providing the Client with Quotes.

Rate – shall mean the value of the base currency in the terms of the Quote Currency.

Request Execution – the mechanism for providing Quotes in response to Client requests.

Request (Request for Quotation) – a request from the Client to the Company to provide a Quote. Such a request does not constitute an obligation on the part of the Client to make a Transaction.

Screenshot – digital image, obtained from the computer, with the aid of operational system or special software, and representing exactly what the Client or Trader sees on the computer monitor.

Server – all technical tools and software, used for data processing, Client’s instructions, executing Client’s orders, for live delivering trading information, content of this information is subject to the Company’s statement with respect to mutual covenants between the Client and the Company, accordant with following Regulatory documents.

Server Log-File– the file created by the server which records accurately to the second all Requests and Instructions and their corresponding results sent by the Client to the Company.

Short Position – a position held with the expectation that the asset will fall in value. In currency trading it means buying the Quote Currency and selling the Base Currency.

Spike – an error Quote with the following characteristics:

• a) a significant Price Gap;
• b) a price rebound in a short time period within a Price Gap;
• c) no prior rapid price fluctuation before the Spike;
• d) no released macroeconomic indicators and/or corporate reports that could influence the price.

Spread – the difference between Ask and Bid prices.

Streaming Quotes– the flow of Quotes in the Trading Platform for each instrument.

Swap – funds that are deducted or added for transferring an open position for next day. The amount of swap depends on the difference between the interest rates of the Central Banks of the countries which currencies participate in the order (sell/buy). Addition/deduction of swap takes place at the last minute of trading day at the server time (from 23:59 to 00:00). On the Wednesday to Thursday night swap is deducted/added in the triple amount.

Trading account – unique personalized register of trading operations at the trading platform, with a record of all fully completed transactions, opened positions and non-trading operations and orders.

Trading conditions – main trading conditions (spread, lot amount, minimal volume of trading operations, initial margin, margin of locked positions etc.) for each financial instrument.

Trading Operation – the buying or selling by the Client of any instrument.

Trading Platform – the program used by the Client in order to obtain information about financial markets in real-time, conduct trading operations, tracking obligations between the Client and the Company as well as for compliance with the applicable conditions and restrictions. For the sake of simplicity in these Regulations, the trading platform consists of a “Server” and a “Client Terminal.”

Trading Platform Time Zone – the time zone in which the Server Log-File records any event.

Transaction size – Lot size multiplied by the number of Lots.

Thin Market – a market with fewer Transactions and consequently fewer Quotes than during Normal Market Conditions. Such conditions occur most often during the Christmas holidays and other major national holidays of G7 countries, and from 20:00 GMT to 00:00 GMT etc.

Ticker – the unique identity number assigned to each Open Position or Pending Order in the Trading Platform.

Website – the Company’s website at http://www.usbbroker.com

Written notifications – paper or electronic copy of any document (including fax, emails etc.) of the Company.