3.7. The Client acknowledges, accepts and understands the risks and is willing and able to assume the risks of forex trading financially and otherwise and that the loss of the entire balance of his account will not change his lifestyle. The Client acknowledges that profit guarantees or no loss in OTC FOREX/METALS/CFD trading are impossible. The Client acknowledges that it has not received any such guarantee from the Company or any of its agents or any of its initiating agents or other legal entity with which the Client maintains its Business Account and has not entered into this Agreement in consideration for or relying on such similar warranties or representations. A master brokerage contract is a contract between an investment bank and a large client, such as . B a hedge fund. Through this agreement, the bank provides special services to the client in exchange for its main brokerage fees. 4.1. The Company acts exclusively as an independent contractual counterparty of the Client with respect to OTC FOREX/METALS/CFD transactions. The Company does not provide or perform the function of financial advisor or trustee to the Client. The Company`s proposed transactions, proposed hedging strategies or other written materials or oral communications should not be construed as investment recommendations or advice or as an expression of the Company`s opinion as to whether a particular transaction is suitable for the Client or achieves its financial objectives.
The Company assumes no liability arising from business decisions. Essentially, investors can use CFDs to bet on the rise or fall in the price of the underlying asset or security. Traders can bet on upward or downward movements. If the trader who bought a CFD sees the increase in the price of the asset, he will offer his participation in the sale. The net difference between the purchase price and the selling price is added together. The net difference representing the profit of the transactions is settled by the investor`s brokerage account. Yes, of course, it is possible to make money with CFDs. However, CFD trading is a risky strategy compared to other forms of trading. Most successful CFD traders are experienced traders with a lot of experience and tactical insight.
CFD brokers offer many of the same types of orders as traditional brokers, including stops, limits, and conditional orders, such as «one cancels the other» and «if it is done.» Some brokers who offer guaranteed stops charge a fee for the service or cover the cost in some other way. 35.4. The Company does not guarantee that the Services provided and/or the Trading Platform will not be subject to interruptions or errors. The Services and Trading Facilities are provided «AS IS» without any representations or warranties of any kind. 3.5. When trading FOREX/METALS/CFDs over-the-counter with the Company, FXCL Markets Ltd. acts as a broker in a private contract with the Client. The Company, for its part, may enter into «consecutive» transactions with other merchants, dealers, etc., including its affiliates. The prices communicated to the Customer by the Company include a price range. The Company does not execute FOREX/METALS/CFD transactions over the counter on an exchange and transactions are not settled by a central clearing organization.
Therefore, any transaction with the Company is solely a private obligation of the Company and not an obligation of a clearing house. Maybe your trades will go so well that you will create your own hedge fund or a large-scale trading operation. In this case, you may need a main brokerage contract. But until then, you shouldn`t have to worry about the details. In many cases, a master brokerage contract also includes operational support. Although hedge funds are among the busiest traders and can handle a lot of money, they are often small in terms of staff. If they don`t have enough organizations to do the often significant amount of direct work needed to trade securities, they usually outsource them. However, the standard online brokerage account will not cut it for large clients. Large clients need a wide range of financial services, and this is where a master brokerage contract comes in.
7.4. The Client shall pay commissions, fees and other fees arising from transactions with or through the Company, including, but not limited to, brokerage fees and discounts, account statement fees, inactive account fees, cancellation fees, account transfer fees, adjustment fees or other bank fees and charges. CFD trading will increase in 2020. A key feature of CFDs is that they allow you to trade in markets that are falling, in addition to those that are rising – so that they can make profits even when the market is in turbulence. A voluntary contractual agreement may exist between two parties, including a buyer or seller on the one hand and a broker on the other. The broker facilitates transactions between the buyer or seller and a third party, which may be an airline, an insurance company, a stock fund, a wholesaler, a communications company or another managing party. Brokerage contracts have some basic principles in common. 26.1. The Société maintains a trading platform, an automated system and service offices. The automated system is used to execute client instructions and account management, including but not limited to automated order entry, order transmission and/or execution systems, record keeping, account reporting and reconciliation systems, risk management. 20.5. If the Client engages in any form of abusive trading, including, but not limited to, strategies to exploit price errors, unqualified trades (unless otherwise specified in the Trading Conditions), Grid/Martingale strategies, Grid/Martingale strategies, Carry Trade strategies or other strategies and/or Expert Advisors prohibited by the Company`s trading conditions, the Company has the right to: take one or more of the following countermeasures: 7.2.
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