Additional Terms re Price Markets variable FX Spreads (Dynamic FX)
This Agreement should be read in conjunction with the Client Agreement including our Terms and Conditions and Order Execution Policy and if there is anything that you do not understand please contact Customer Support.
The Price Markets MT4 trading platform is provided on the following basis:-
1. The Price Markets MT4 platform provides prices based on Price Markets FX and various Futures exchange platforms.
2. Price Markets will act as market maker, executing orders and maintaining the position internally – contracting with you as principal.
3. Price Markets may, at its own discretion, place underlying trades in the market (hedge). In which case your trades may only be filled if Price Markets is filled itself.
4. In the event that Price Markets chooses not to ‘hedge’, then your trades will be executed or rejected subject to the obligations, requirements and limitations laid down in the prevailing Terms and Conditions governing the operation of my account.
5. Price Markets ‘hedging policy’ is strictly discretionary.
Cash contracts provide a cost-effective solution for short to medium term trading. They do not have an expiry date. An overnight financing rate is applied for every night that you hold a position open. Because you have only a small percentage of the full value of the trade as margin on deposit, your account incurs a debit or credit for each day that the position is held overnight. Similar to a mortgage on a property, you can put down a deposit and the rest remaining balance you can pay for with an interest only loan from the bank. In the event of a corporate action or dividend being applied to the underlying market, a cash adjustment may be made to the account to reflect this redistribution of cash. A haircut may be applied to the value of this cash adjustment.
Futures contracts will expire at a future date. The price is derived from the relevant underlying product or a related future and will factor in the cost of carry to the expiry date. No overnight finance charges will therefore be applied to positions held overnight. Relevant interest rate levels and time to expiry are the key determinants of the cost-of-carry that will be factored into the future contract price. In the case of equity related futures, we may apply a cash adjustment in the event of corporate actions or dividend payments during the life of the contract to reflect this redistribution of cash if it has not been discounted in the future contract’s price. A haircut may be applied to this adjustment dependant on several factors for example applicable tax rates, clearing cost to process dividend payments etc. The future contract can be closed at any time before it expires, just as you can with a Cash contract.
i) All details are correct at time of going to press.
ii) Price Markets reserves the right to alter the contract specifications at anytime and to widen spreads in times of excessive market volatility.
iii) All times stated are UK times.
Short Selling Restrictions
Please be advised that various regulators have imposed short selling restrictions on a small number of the equity markets we quote. This means that you are not allowed to hold sell positions in these markets. Whilst we will attempt to keep you informed of the changes imposed by the regulators, please understand that it is your responsibility to know which shares you can and cannot short.
If you place a trade in contravention to these restrictions we may, solely at our discretion, close any such position without notice to you. We will close positions at either the current quote or at the entry level plus our spread. You will be liable for any loss you might incur as a result of such an action by us and you may also be liable to action taken by the regulator due to your contravention of said regulations.
If you do have a specific query about an individual share, please check with the relevant exchange or you can contact our dealing team who will endeavour to assist you.
Rollover of Futures Contracts
Rollover terms on all markets are available with Price Markets. To avail yourself of any rollover concessions you must indicate to Price Markets 45 minutes before the expiry of the relevant contract that you wish to roll. Price Markets will rollover futures contracts as follows:
For equities, Price Markets will close the existing trade spread free (at just the underlying market price) and offer the subsequent quarter at half of the spread.
For all other contracts, Price Markets will close the trade at our mid-point and offer the subsequent quarter at the current Price Markets quote.
i) Price Markets closes the existing trade on rollover of futures contracts and subsequently opens a new trade on the next month/quarter
ii) Any profits or losses incurred are realised on rollover of futures contracts.
Cash contracts may incur a debit or credit for each day that they are held overnight. If you hold an open position at the day’s session close, time then any relevant overnight financing charges will be applied to this position.
If you are long of a market, this equates to real market cash exposure and so interest may be charged on this cash value for each day that the position is held open overnight. If you are short of a market, an interest return may be paid on these equivalent cash funds.
Notes on Spot currency (Forex) trades
The Relevant Funding Rate (RFR) (or Roolover & Swap rates) for Spot FX trades is generally equivalent to the base rate of the second currency minus the base rate of the first currency in a currency pair.
The first currency in the currency pair GBP/USD is sterling and the second is the US dollar. Therefore, the corresponding RFR for GBP/USD may be calculated as follows:
3.25% (USD) minus 4.50% (GBP) = a negative interest rate of minus 1.25% or – 0.0125.
The difference between the interest rates of currencies may be a negative number which may result in an overnight financing charge for short positions or an overnight financing payment for long positions.
The rates used for the examples above are indicative and are not necessarily representative of correct rates