Order Executions policy
__________________________________ is required to inform its clients (you) as to the policies
for execution of client Trades and Orders. This policy should be read in conjunction with the Client
Agreement to understand __________________________________’s Order execution policy
before use of __________________________________’s execution services. If there is anything
you do not understand or seek clarification, please contact our Client Services Team.
1. __________________________________
1.1. __________________________________ acts as intermediary in the trading of Securities of its clients covering a wide variety of financial markets and instruments. Every market quoted by __________________________________ is derived directly from an underlying financial instrument sourced from an exchange or from a wholesale quoting counterparty (i.e. FX quoting banks). __________________________________ determines which markets to quote, the times at which those markets are quoted; __________________________________ publishes via its trading platforms those quotes at a tight spread or with a mark-up on which clients may be able to trade.
1.2. __________________________________ takes all reasonable steps to ensure the best possible result for its clients when executing client instructions.
2. TRADE EXECUTION POLICY
2.1. Where you provide us with specific instructions as to how to execute your trade or order,
then this will remove the obligation from __________________________________ to take all
reasonable steps to obtain the best possible execution result by the consequences of
following your instructions. When we open and close trades for you, we will take all
reasonable steps to achieve the best possible result for you by opening and closing those
trades according to our Order Execution Policy and subject to any specific instructions
received from you. In all other circumstances, when we execute a trade or order for you we
will take into consideration a number of factors that allow us to offer the best possible result.
These are described further below. For Retail clients, this will mainly be determined by the
price or spread, followed by the size and nature of the trade or order, and the speed and
likelihood of execution and settlement. The most common factors are highlighted below.
2.2. Price – If your trade via the trading platform is accepted by
__________________________________ then your trade will be executed at the price
requested by you and at no other price. If your trade is made over the telephone then,
assuming there is no ‘price error’, your trade will be executed at this price. If you trade via
our platform on “Instant Execution” mode, then the entire order is placed into the
‘underlying market’ and is filled at the best available price at that time.
2.3. Transaction Speed – In almost all circumstances, so long as you have sufficient margin
available on your account for the trade and so long as the trade size requested is equal to or
under the maximum internet size permissible, your trade will be executed at the level
requested. In certain circumstances due to speed of internet communications, market
volatility or in the case of deliberate manipulation of our quoted prices your trade may be
rejected by us if the price at which you have attempted to trade is not representative of the
‘underlying market’ price when received by __________________________________.
2.4. Trade Size – All trade execution is subject to size considerations. If the requested trade size
is larger than __________________________________ is able to trade in the ‘underlying
market’ instrument on the relevant exchange at that time then the entire trade or order may
be rejected, but __________________________________ may offer greater liquidity than
the ‘underlying market’ at its discretion. __________________________________ will not
make a ‘partial fill’ of any trade except by agreement in the case of a telephone trade. Every
market quoted by __________________________________ has an absolute minimum and
maximum permitted and this can be found by clicking on the information icon button
associated with each market, which can be found on the
__________________________________ Trading Platform However, this maximum trade
size may vary due to market conditions and is, at all times, at the discretion of
__________________________________.
2.5. General – In most cases an order, when triggered by market price action, will be filled at the
same, or very close to the same, price as requested on your order request. If the market
opens at the start of the trading day at a price sharply different to the closing price of the
previous trading session any order whose activation price is between the closing
__________________________________ quote of the previous day’s trading close and the
opening quote of the next day’s trading session will be filled at the first price reasonably
obtainable by __________________________________ with reference to the ‘underlying
market’.
2.6. Gapping and slippage – All orders (Stop Loss, Limit or New Order) are subject to slippage on
the open market. In a situation where slippage occurs during trading hours, any buy order
(new or limit) below the market or sell order (new or limit), above the market and sell orders
(closing or stop), below the market or buy orders (closing or stop), or above the market, may
be subject to slippage. If any market gaps from one quoted price to another due to any
market sensitive piece of information (such as a profit warning or an economic data release),
then any order in place between these prices will be activated.
__________________________________ offers execution via a Dealing desk where it
provides prices and execution and the client will be trading into
__________________________________ liquidity. Please note there may be times where
there is a limitation to liquidity, which can have an impact on your execution.
__________________________________ treats all clients fairly and in the event of gapping
passes the best price that is provided by one of __________________________________’s
liquidity providers or data feed providers will be passed on to the client. If at any time
__________________________________ receives a price improvement on either of these
order types, then this price improvement will be passed onto the client. Due to limitation of
accessing market depth on MT4 platform, and the inevitable latency issue and the size of
the order, and nature of trading style, __________________________________ does not
guarantee the execution and slippage will be better than any other model or other forms of
execution available and __________________________________ will pass the fair market
price to the client, in both Limit and Stop orders.
2.7. Market Hours – Aside from those markets defined as being quoted ‘out of hours’ no order will
be filled outside of __________________________________’ specified quoting hours. Please
note that markets continue to trade outside of the quoting hours offered by
__________________________________, and in these cases there is significant potential of
some gapping from one __________________________________ trading session to the next
__________________________________ trading session. All orders in these markets will be
subject to this gap in prices. Orders activated in ‘out of hours’ markets’ quoted by
__________________________________ are treated as though the underlying instrument
were open and trading at that level required to activate the order.
WORKING ORDERS
Both Limit and Stop orders may be cancelled by the client at any time but once an order has been
activated it is unlikely that you will be able to cancel the whole transaction and you are obligated to
accept any part of a worked order that is filled prior to cancelation.
CONNECTION FAILURE
In the exceptional instances where you face problems connecting to our servers and need to place,
modify, erase, or close trades or require any type of action on or information regarding your online
Trading Account, please contact the trading desk immediately on the contact details registered on
__________________________________ Website.
GLOSSARY OF TERMS
Client Agreement – The contractual agreement that you enter into when opening an account with
__________________________________. The terms relate to our CFD and Spot FX products.
Execution venue – A location where financial instruments can be traded (i.e. the New York Stock
Exchange, NYSE) __________________________________ is the sole execution venue for your trades
placed via its internet portals or over the telephone.
Instant Execution – A term used by MetaQuotes Software Corp on the MetaTrader 4 trading
platform and means traders do not have to request quotes but see real-time prices in their order
window. This term can also be understood as precise execution, meaning the
__________________________________ terminal sends the request to buy or sell at the price shown
on the screen. Processing the trade once it has been placed may take a few seconds, dependent on
internet and external connections, after which the order will be fulfilled. On rare occasions the exact
price shown may no longer be available, if this is the case then a new price will be shown at which the
trader can submit or cancel the order.
Market – An individual market on which you can make a trade.
Order: This is where you give an instruction to execute a trade at a price that is not currently available
in the market but may be available at a future date/time.
Our Quote – The price quoted by us in each market via our trading platform.
Open Position – A situation where you have an exposure to a particular market due to the fact that
you have an unexpired trade active on your account.
Trade – The action of making a trade using a quote given by __________________________________
to either open a position or to close (or part close) an open position.
Underlying Market – A financial instrument acquired from an execution venue or from a wholesale
quoting counterparty which underlies the quote made by __________________________________.
For example, the FTSE Rolling Daily price is calculated with reference to the most liquid FTSE futures
contract (commonly called the Front Month) plus or minus a Fair Value (FV), which is comprised of
‘cost of carry’ time value plus any expected dividend component between now and the expiry of the
FTSE future. So the ‘underlying market’ for the FTSE Daily Rolling market is the FTSE future (not the
FTSE 100 index itself).
