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Terms and Definitions used in the Client Agreement and attachments

“Account history” the list of the full finished transactions and non-tradingtransactions under the trading account..

“Advisor” an algorithm of a trading account management in the form of a program in specialized language, sending requests and instructions to the server with the use of the client terminal.

“Ask” the higher price in a quote. The price the Client may buy at.

“Arbitrage“ the trading strategy using «Arbitrage deal».

“Arbitrage deal” is an operation, point of which is that the asset is bought at one market and its analogue is sold at another at the same moment.

“Balance” cumulative financial result of all finished transactions and non-trading transactions on the trading account.

“Bar (Candlestick)” an element of a chart including opening and closing prices, and also the maximum and minimum prices for the certain period (minute, 5 minutes, days, week etc.).

“Bid” the lower price in a quote. The price the Client may sell it.

“Chart” quotes flow presented in a graphic form. The maximum (high) of a bar/candle is the maximum Bid for the period, the minimum (low) is the minimum Bid, the closing price (close) – the last Bid of a bar/candle, the opening price (open) is the first Bid of a bar/candle.

“Client log-file” a file created by the client terminal which registers up to a second all inquiries and the orders sent by the Client to Phase Markets

“Client terminal” software product means of which the Client can receive information about the trades at the financial markets (in the volume defined by Phase Markets) online in order to carry out the technical analysis of the markets, to make trading operations, to expose/change/delete orders, and also to receive messages from Nord FX. Is placed on Phase Markets's official website

“Closed position” result of the second part of the finished transaction.

“Phase Markets News page” the page on Phase Markets's website where news is displayed.

“Contract for difference” (CFDs) a contract regarding the fluctuation in the price an underlying asset (shares, futures, commodities metals, indexes etc.)

“Contract specification” main trading conditions (a spread, a lot size, a minimal volume of transaction, a change move of a transaction volume, an initial margin, a margin for locked positions etc.) for each tool. The information is placed on Phase Markets’s official website.

“Credit leverage” is ratio between the margin and trading operation volume. For example, the credit leverage 1:100 means that for transaction realization it is necessary to have a sum of 100 times smaller, than a sum of transaction.

“Currency pair” object of a trading operation with the base of one currency cost change relative to another currency cosy

“Disputable situation” a situation when:

1) the Client thinks that Phase Market has violated one or more provisions of this Agreement because of his activity or inactivity;

2) Phase Market thinks that the Client has violated one or more provisions of this Agreement because of his activity or inactivity.

“Equity” a current state of the account. It is calculated by the formula: balance + floating profit - floating loss.

“Fast market” the condition of the market characterized by rapid trend changes at a small time interval.

“Finished transaction” consists of two opposite trading operations of an equal volume (opening and closing of position): a purchase with next consequent sale or a sale with next consequent purchase.

“Floating profit/loss” non-fixed profit/loss in open positions with current rate values.

“Force majeure” lack of conformity of the terms and conditions of Phase Markets and the terms and conditions of the counterparty, current market situation, possibilities of software or hardware of Phase Markets or other situations which cannot be foreseen.

“Free margin” funds on a trading account, which can be used for the opening of new positions. Calculated by the following formula: equity — margin.

“Hedged margin” maintenance demanded by Phase Markets for opening and maintenance of blocked positions. The details for each instrument are in the contract specifications

“Initial margin” cash security demanded by Phase Markets for opening of positions. The details for each instrument are in the contract specifications.

“Inquiry” the instruction of the Client to Phase Markets on quote reception. The inquiry is not the obligation of the Client to make the transaction.

“Instant execution” the provision of quotes to the trade system without a request. Thus a client may proceed with desired transactions.

“Instruction” the Client’s order to Phase Markets to open/close a position or to place/modify/delete an order.

“Tool” (“Instrument”) currency pair or Contract for difference (CFD).

“Lock position” long and short positions of identical volume opened at the same instrument on one trading account.

“Long position” instrument purchase in view of a rate increase. Regarding to currency pairs: purchase of a base currency for quote currency.

“Lot” an abstract designation of quantity of the base currency, accepted in a trading platform.

“Lot size” a number of shares, articles, a basis currency in one lot defined in the specification of contracts

“Margin Call” a state of the account at which Phase markets has the right, but is not obliged to close all open positions of the client because of a Free margin lack. «Margin level» rate at which a situation of «margin call» occurs on the account is specified in the present Agreement.

“Margin Level” the relation of equity to necessary margin expressed in percentage. It is calculated by the formula: (equity/margin) *100 %.

“Margin Trade” carrying out of trading operations with the use of a credit leverage when the Client has possibility to make a transaction with the sums considerably exceeding the amount of his/her own funds.

“Market conditions different from normal” see «thin market» or «fast market».

“Market opening” a continuation of trade operations after weekends, holidays or after a break between trading sessions.

“Necessary Margin” the margin required by Nord FX to maintain open positions. The details for each instrument are in the contract specifications.

“Non Market Quote (Spike)” is a quote (price level) within a price gap which meets the following terms:

  • the presence of a significant price gap;
  • return of the price within a short period of time to the initial level with a price gap;
  • absence of fast price dynamics before the appearance of this quote;
  • lack of macro-economic developments and/or corporate news, having significant impact on the trading asset rate at the moment when such a quote appeared.
  • Phase Markets has the right to delete information about such a non-market quote from the server's database Wherein:

  • the client is refunded the money lost as a result of this spike, if the spike was directed against the position opened by the client,
  • or the profit received by the client as a result of this spike is canceled, if it was directed in the direction of the position opened by the client.
  • “Non-trading transactions” replenishment of the account as well as funds withdrawal from the trading account or operation of granting (return) of the credit.

    “Normal market conditions” market conditions, satisfying each of the following conditions: absence of considerable breaks in quote delivery within a trading platform:

  • for Contracts for difference, no entry of non-stock quote in the trading platform;
  • absence of rapid dynamics of the price;
  • absence of essential price gaps
  • “Obvious error” a Client's position opening/closing or an execution of his order by Phase Markets at the price essentially different from the price for this instrument in a quote flow at a point in time of this commitment; any other Nord FX's activity or inactivity concerned with his obviously erroneous identification of the market price level in a certain time period.

    “Open position” a result of the first part of a full done transaction. In consequence of the opening of a position the Client takes the following obligations:

  • make a counter transaction of the same volume;
  • to support equity not lower than a necessary margin.
  • “Order” the Client’s instruction to Nord FX to open or close a position when the price reaches the order’s level.

    “Order level” a price specified in an order.

    “Pending order” an order of the Client to open a position at the price level pointed in the order.

    “Personal Area” shall mean the Client's personal page on Phase Markets's website, designed for the Client's identification, records of non-trading operations, and support.

    “Point” is the minimal possible change of price.

    “Price that has preceded nonmarket quote” a price of a minute bar closing followed by a minute bar with a non-market quote.

    “Price gap” a price range where quotes haven’t occurred. Any of the two following situations:

  • a Bid of a current quote is bigger than an Ask of the previous quote;
  • An Ask of a current quote is less than a Bid of the previous quote.
  • “Price gap of market opening” any of the two following situations:

  • Bid quotes of market opening are bigger than Ask quotes of market closing;
  • Ask quotes of market opening are less than Bid quotes of market closing.
  • “Quote” the information on the current rate for a specific instrument, shown in the form of the Bid and Ask price.

    “Quotes base” the information about a quotes flow.

    “Base currency” the first currency in a designation of currency pair which the Client can buy or sell for quote currency.

    “Quote currency” the second currency in a designation of currency pair for which the Client can buy or sell base currency.

    “Quotes flow” a sequence of quotes for each instrument coming to the trading platform.

    “Quoting” process of granting to the Client of quotes for transaction fulfillment.

    “Rate”

    1) for a currency pair: the value of the base currency in the terms of the quote currency;

    2) for a Contract for Difference: the value of one unit of the underlying asset in monetary terms.

    “Stop out” the order of compulsory closing of a position generated by a server.

    “Server” a software, by force of which a processing of the Client's instructions and requests; an assignment of information about trade operations on financial markets in real time (in a volume defined by Phase Markets) to the Client, a consideration of the mutual obligations between the Client and Phase markets and also an adherence to specifications and restrictions.

    “Server log-file” a file created by the server which registers up to a second all inquiries and orders sent by the Client to Phase Markets, and also result of their processing.

    “Short position” instrument sale in view of a rate fall. Regarding currency pairs it is sale of base currency for quote currency.

    “Spike” a quote fitting the following conditions:

  • an occurrence of an essential price gap;
  • a price return to the initial level in short period with an appearance of a price gap;
  • an absence of impetuous price dynamics before an appearance of this quote;
  • an absence of macro economical events and/or corporate news, influencing a course of an instrument, at the moment of its appearance.
  • Phase Markets has the right to remove information about a nonmarket quote from the quotes base of the server.

    “Spread” a difference between Ask and Bid quotes stated in points.

    “Swap” a payment for overnight holding of an open position. It can be both positive, and negative. The table with «swap» values of each instrument is placed on Phase Markets’s official website.

    “Trading account” a unique personified register for the operation accounting in the trading platform where full finished transactions, open positions, non-trading operations and orders are reflected.

    “Trading operation” a buying or a selling of any instrument by the Client.

    “Trading platform” a total of program and technical tools providing the reception of the information about transactions on financial markets in real time, a transaction making, an accounting of mutual obligations between the Client and Phase markets and also an adherence to specifications and restrictions. It consists of the server and the client terminal in a simplified form for the purposes of this Agreement.

    “Trading platform time” time zone where any events in a server log-file are fixed. At the moment of the given Agreement edition it is GMT+1.

    “Trailing Stop” - is the following algorithm of Stop Loss order management:

  • if the profit on an open position does not exceed the Trailing Stop value, no actions to undertake;
  • as soon as the profit of an open position exceeds the Trailing Stop value, send to the server an order of placing Stop Loss order at a distance of the Trailing Stop value from the current price; • as soon as comes the quote at a distance exceeding the Trailing Stop value from Stop Loss exposed, send to the server an order of this order level change so that it was at a distance of the Trailing Stop value from the current price.
  • Trailing Stop functioned only when the client terminal is started, connected to the Internet and successfully authorized on a server.

    “Trailing Stop value” Trailing Stop parameter set by the Client.

    “Ticker”- a unique identification number assignable in the trading platform to each opened position or a pending order.

    “Thin Market” a state of the market when quotes are rarer than those in normal market conditions during a long time period.

    “Developer” Phase Markets, the trading platform creator.

    “Volume of transaction” a number of lots multiplied by lot size.

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