6.1. The Client is specifically made aware that in certain markets, including the foreign exchange markets, OTC foreign exchange options and CFD Contracts, the Company may act as a Market Maker.
6.2. The Company will, upon the Client’s written request, in general disclose to the Client whether the Company may act as a Market Maker in certain CFD Contracts.
6.3. In order for the Company to quote prices with the swiftness normally associated
with speculative trading, the Company may have to rely on available price or available
information that may later prove to be faulty due to specific market circumstances, for
instance, but not limited to, lack of liquidity in or suspension of an asset or errors in feeds
from information providers or quotes from Counterparties. If so and if the Company has acted in
good faith when providing the price to the Client, the Company may cancel the trade with the
Client but shall do so within reasonable time and shall provide the Client with a full
explanation for the reason for such cancellation.
6.4. Following execution of any position with a Client, the Company may at it’s
reasonable discretion subsequently offset each such client position with another Client
position, or a position with one of the Company’s Counterparties or retain a proprietary
position in the market with the intention to obtain trading profits from such positions. Such
decisions and actions may therefore result in the Company offsetting client positions at prices
different – sometimes significantly different – from prices quoted to Clients, resulting in
trading profits or losses for the Company. This in turn can raise the possibility of the Client
incurring what may be seen as an implied cost (i.e. the difference between the price at which
the Client traded with the Company and the price at which the Company subsequently traded with
Counterparties and/or other Clients) due to any profits realized by the Company as a result
of the Market Making function. However the Market Making function may involve significant costs
to the Company if the market moves against it as compared to the price at which it traded with
6.5. The Client accepts that the Company in CFD contracts where it acts as Market
Maker may hold positions that are contrary to positions of the Client, resulting in potential
conflicts of interest between the Company and the Client.
6.6.In markets, where the Company acts as a Market Maker, the Client accepts that
the Company has no obligation to quote prices to clients at all times in any given market, nor
to quote such prices to clients with a specific maximum spread.
6.7. The Client acknowledges, recognizes and accepts that the price quoted to the
Client includes a spread when compared with the price to which the Company may have covered or
expected to be able to cover the Contract in a trade with another client or a Counterparty.
Furthermore, the Client acknowledges, recognizes and accepts that said spread constitutes
remuneration to the Company and that such spread can not necessarily be calculated for all
Contracts and that such spread will not be specified at the Trade Confirmation or otherwise
revealed to the Client.
6.8.Any commission costs, interest charges, costs associated to and included in the
spreads quoted by the Company as a Market Maker in certain markets and other fees and charges
will consequently influence the Client’s trading result and will have a negative effect on the
Client’s trading performance compared to a situation if such commission costs, interest charges,
costs associated to and included in the spreads did not apply.
(a) In the case that the client account equity is equal or exceeds 300,000 USD (or
currency equivalent) and there are open trades of 50 lots or more, the Company reserves the
right to adjust the leverage of the underlying trading account to 1:75. If this is the case the
Company will inform the Client by email.
(b) If the Client is an active trader and is undertaking numerous transactions, the
total impact of visible as well as not visible costs may be significant. Consequently the Client
may have to obtain significant profits in the markets in order to cover the costs
associated with trading activities with the Company. For very active Clients, such costs may
over time exceed the value of the margin deposited. Normally, when trading margined derivatives,
the lower the percentage of the applicable margin rate, the higher the proportion of the costs
associated with executing a transaction. Margined derivatives are derivatives such as CFD’s that
can be traded using a leverage of higher than 1:1.
6.9. The Client is specifically made aware that in the area of market making in foreign exchange, OTC foreign exchange options, CFD Contracts and other OTC products, significant implied costs can arise as a consequence of the profits made by the Company performing in its capacity as a Market Maker.
6.10. The Company’s performance as a Market Maker may negatively affect the Client’s Account with the Company and the said implied costs are neither directly visible nor directly quantifiable for the Client at any time.
6.11. The Company is at no time obliged to disclose any details of its performance or income produced as a Market Maker or otherwise related to other commissions, charges and fees.
6.12. The Client is specifically made aware that CFD Contracts may be OTC products
quoted by the Company whilst operating as a Market Maker and not traded on a recognized stock
exchange. As a result, the description above of the implied, not visible costs related to the
Company performance as a Market Maker may also apply to any CFD Contract.
6.13. Due to low liquidity and/or or high volatility and widened spreads, placing of pending orders around some Economic Announcements may be restricted.
6.14. The Company reserves the right, at its sole discretion, to delete any Pending
Orders older than three (3) months from the Clients’ trading account(s). Pending Order is a “Buy
Limit”, “Buy Stop”, “Sell Limit” or “Sell Stop” order, as per the Company’s Order Execution