Precious Metals and Forex Trading Rules and Regulations. (Online Trading Account)

Online Trading Account Precious Metals and Forex Trading Rules and Regulations (Online Trading Account) Clients that opens account for Online Preciou...
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Online Trading Account

Precious Metals and Forex Trading Rules and Regulations (Online Trading Account) Clients that opens account for Online Precious Metals and Forex trading account with DEFINITE FINANCIAL LTD. (here after referred to as “the dealer”), hereby propose the Rules and Regulations for the trading account, margin requirement, margin call , hedge position and stop-loss: 1.

Margin Requirement – Loco London Gold, Forex Day Trade Margin Requirement Stop-Loss Point Overnight Margin Requirement Margin Requirement for Day Trade Hedging Margin Requirement for Position Un-Hedging Margin Requirement

USD$ 1,000. When Margin Requirement fall to 15% or below

USD$ 1,000. USD$ 1,000. USD$ 1,000.

- Loco London Silver

Day Trade Margin Requirement USD$ 2,000. Stop-Loss Point When Margin Requirement fall to 15% or below Overnight Margin Requirement USD$ 2,000. Margin Requirement for Day Trade Hedging USD$ 2,000. Margin Requirement for Position Un-Hedging USD$ 2,000. Commission Fee – charged when a new position is opened (every single pair) 2.

Contract Size CURRECY

CONTRACT SIZE

EURO / USD

100,000 Euro

USD / YEN

100,000 USD

BRITISH POUND / USD

100,000 GBP

USD / SWISS FRANC

100,000 USD

AUSTRALIAN DOLLAR / USD

100 000 AUD

USD / CANADIAN DOLLAR

100,000 USD

EURO / BRITISH POUND

100,000 EUR

EURO / YEN

100,000 EUR

BRITISH POUND / YEN

100,000 GPB

EURO / SWISS FRANC

100,000 EUR

BRITISH POUND / SWISS FRANC

100,000 GPB

AUSTRALIAN DOLLAR / YEN

100 000 AUD

Precious Metals LOCO LONDON GOLD

100 oz

LOCO LONDON SILVER

5,000 oz

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Online Trading Account

Notice: (1)

The Client should have sufficient fund in his account for fulfill the open position margin requirement, otherwise the dealer shall be entitled to conduct an automatic stop-loss on behalf of the Client. In case of insufficient for the margin requirement, the Client shall deposit fund as soon as possible to maintain the account equity to 100% for fulfilling necessary margin requirement. Even if the Client has informed the dealer that will have the fund deposit for the margin call, but the dealer is entitled to conduct stop-loss for part or all of the positions liquidation with insufficient margin required, provided that the margin in the Client’s account falls to hit stop-loss point by price fluctuation before the dealer confirms that all the margin has been received appropriately.

(2)

(3) (4)

3.

In case of Day-trade, if the margin requirement in the Client’s account falls and hit Stop Loss point by market fluctuations, the dealer will conduct a stop-loss order for all transactions with insufficient margin requirement until it is fulfilled. The Client is restricted from opening any new contract without sufficient margin in his account. In order to reduce overnight risks for Clients and the Company, if the equity of the Client’s account suddenly becomes over loss when markets are closed, then when the market opens the next day, the dealer will conduct a Stop-Loss order for all positions with insufficient margin requirement at the market opening price.

Definitions 「Initial Margin」 -Margin Requirement for every new position. 「Margin Call」 - Requirement to make a deposit to fulfill margin requirement gap. 「Trading Hours (Summer)」 - 00:00 GMT to 19:00 GMT, Monday to Friday 「Trading Hours (Winter)」 - 00:00 GMT to 20:00 GMT Monday to Friday 「Settlement Time (Daily)」 - 21:55 to 23:00 GMT, Monday to Friday 「Market Close」 - Saturday/Sunday/ depends on holiday of global market (Hong Kong Time = GMT Time + 8 hours) 「Stop-Loss Point」 - AT any time, within the opening and closing of the market in a trade day, when the dealer finds that the net value of the Client’s account is or less than 15% of the required margin, the stop-loss point will be activated . 「Stop-Loss」

4.

- when the dealer finds that the concerned account is at stop-loss point, the dealer is entitled to stop loss for all transactions with insufficient margin at the market price.

Instructions If the Dealer receives any instructions by the Client to operate his account by other means (for example, by phone), the instruction may not be performed because of insufficient margin in the account and/or because of change in market price, etc. The Client shall understand and agree that the implementation of his instruction is subjected to acceptance of service for online precious metals and FX trading.

5.

Limit Order (1)

The effectiveness of placing the Limit Order : cancelled automatically after market close on every Friday. Page 2 of 6

Online Trading Account

(2)

The limit order place by the Client shall be at least against the current price: 2 US dollars for Loco London Gold, 0.5 US dollars for Loco London Silver, 20 pips for foreign currency and 40 pips for cross-currency. (i) The client cannot refuse in what so ever reason for the execution of the new position limit order being done which placed by the Client, provided that his account has sufficient margin. (ii) (iii)

6.

In case the Client place Limit Order for liquidation, it will be cancelled automatically, when the Client settled the position manually before the limit order has done. When the Client places a Limit Order (New or Liquidation position), even if the price has hit the order it will not be executed in case the Client’s account has insufficient fund for margin requirement.

Day high/low Price The system will be updated automatically at 23:00 GMT every day, in which the High price of the day refers to the highest selling rate, whereas the Low price means the lowest one of the day.

7.

Maximum Order The Maximum quantity per order is 30 lots.

8.

Commission Fee The commission fee is calculated based on every single pair and charged when a new position is opened.

9.

Interest Daily Interest = Closing Price x Contract size x interest rate announced by the dealer / 360

10.

Margin and Settlement (1) (2)

Profit and Loss Calculation : is calculated when every trading day is closed. Additional Margin The Client should have sufficient fund in his account for fulfill the open position margin requirement, otherwise the dealer shall be entitled to conduct an automatic stop-loss on behalf of the Client. In case of insufficient for the margin requirement, the Client shall deposit fund as soon as possible to maintain the account equity to 100% for fulfilling necessary margin requirement. Even if the Client has informed the dealer that will have the fund deposit for the margin call, but the dealer is entitled to conduct Stop-Loss for part or all of the positions liquidation with insufficient margin required, provided that the margin in the Client’s account falls to hit stop-loss point by price fluctuation before the dealer confirms that all the margin has been received appropriately.

(3)

Withdrawal The Client may notify the dealer of any withdrawal order in written form or by fax, which should be delivered to the dealer before 12:00 at noon of the working day. If the dealer receives the notification after 12:00 at noon, the withdrawal application will be processed on the next working day for the Client. All the expenses charged by the banks for the withdrawal shall be borne by the Client (the bank remittance shall depend upon the regulations between the banks, rather than the dealer.)

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Online Trading Account

11.

Stop-Loss According to the Rules and regulations, the Client shall maintain sufficient margin deposit in his account at all time. If the equity the account (before calculating relevant interest and commission fee) is less than the Stop-Loss point stated above during the trade day, the dealer is entitled to conduct a Stop-Loss order for the Client.

12.

Un-Hedging position Un-Hedging position shall be conducted subject to the account has sufficient fund for margin requirement, otherwise un-Hedging position will not be accepted and/or processed.

13.

Reserved Rights (1) The dealer reserves the right to change any of the terms and regulations stated above from time to

(2)

(3)

(4)

14.

time. Any of such changes shall be effective immediately after the dealer announce or post such change in the business premises. Considering the market change and price fluctuation, the dealer will try its efforts to remind the Client of any margin call. In addition, according to the Rules and Regulation, the dealer is entitled to do a stop loss order in the account for the Client as long as the margin in the account is insufficient. Before placing for a new order, the Client shall ensure that the account equity is fulfilled the margin requirement of the expected orders. The Client further agrees that the dealer has the right to conduct stop-loss order at any time, provided that the required margin is not sufficient. Subject to the market condition and or variations, the client agrees and accept the dealer has the right to increase the necessary margin requirement from time to time

Spread The dealer is entitled to change the trading spread from time to time according to market conditions without prior notifying to the client. If the Client requires the dealer to quote price by telephone, the quotation from the dealer may possible higher than the online spread of precious metals and FX trading platform

15.

Statement Statements printed by the Client for online service of precious metals and FX shall be used as reference. For any doubt of the instruction about the trading statement or transaction, the Client may contact the dealer promptly to check and examine the records kept by the dealer.

16.

Conflicts If any of the Terms and Regulations conflict with the agreement signed between and by the Client and dealer, the agreement shall prevail.

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Online Trading Account

Commission Fee Schedule □ Commission Fee for Loco London Gold and Loco London Silver Trading Contract Per Lot: US$______________ □ The Commission Fee of every foreign currency transaction contract shall fixed and US$______________

I, (Client Name), agree and accept all the terms and regulations stated above.

Client’s Signature:

Date:

Definite Financial Ltd. For Official Use Only Agreed By:

_

Approved By:

Account Executive

Input By : ____________________ Dealing Dept Date

Responsible Office

Checked By : ______________________ Accounts Dept

:_____________________

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Online Trading Account

Client Information Copy of Client’s ID card / Passport and certificate of address (shared bills, such as bank statements and bills of water and electricity, etc)

I, (Client Name), agree that all the copies I provided for DEFINITE FINANCIAL LTD shall be exclusively used for opening a trading account for me.

Client Signature: _____________________ Date:

Account No._______________________________________________________________________________ Contact Address ___________________________________________________________________________ Phone (Residential)_________________ (Office) ________________ (Mobile) _________________________ Fax _____________________________________________________________________________________ E-mail___________________________________________________________________________________ Client Counselor___________________________________________________________________________ Initial Amount_____________________________________________________________________________ Deposit Means (Cash, transfer, check, EPS, VISA or others – please notify Commission Fee (every single pair) Precious Metals

)

Forex Contract

__

For Official Use Only

Client____________ Account No._________ Open Date Client Counselor

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