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Agreement Glossary |
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CUSTOMER AGREEMENT - GLOSSARY OF TERMS
"Account" - Customers Account with GAIN Capital. In the event Customer maintains more than one account with GAIN Capital, the term "Account" shall refer, in the aggregate, to all of Customer's accounts with GAIN Capital, except where context dictates otherwise.
"Account Balance" - The total of all deposits, interest income and Realized Gains, less all withdrawals, Realized Losses and incidental fees that are available for withdrawal.
"Account Value" - Represents all deposits, withdrawals, fees, credits, realized P&L, and unrealized P&L, as Marked to Market in GAIN Capital's sole discretion.
"Account Activity" - A listing of all trades executed in Customers account during a specified time period, including both open and closed positions.
"Activity Log" - A display log of all deals that have been made in the account as they appear in the actual GAIN Capital Online Trading System.
"Agreement" - The Customer Agreement and all documents and authorizations executed by Customer in connection with the maintenance of Customer's Account (regardless of when such documents and authorizations are executed), as amended from time to time.
"Application" - The Customer Account Application.
"Ask Price"; "ask price" - The price at which GAIN Capital (if "Ask Price" is capitalized) or any other person (if "ask price" is lower case) offers the currency for sale.
"Base Currency" - The first currency in a Currency Pair.
"Bid Price"; "bid price" - The price at which a currency will be purchased from GAIN Capital (if "Bid Price" is capitalized) or any other person (if "bid price" is lower case)
"Business Day" - Shall mean any day on which banks are open for business in New York.
"Closed Position" - Exposures in Foreign Currencies that have been extinguished by expiration, settlement or offset (e.g., long position which have been fully offset by a corresponding Short Position in the same Foreign Currency and for the same Value Date).
"Collateral" - Monies deposited in Customers account that is used to cover the necessary margin required for a trade.
"Contract" - Any contract, whether oral or written, for the purchase or sale of any currency, including any option, entered into by GAIN Capital and Customer.
"Counter Currency" - The second listed currency in a currency pair.
"Cross Currency Contract" - A Spot Contract for the sale of one specified Foreign Currency in exchange for another specified Foreign Currency.
"Cross Currency Pairs" - Two Foreign Currencies employed in a currency transaction not involving the US Dollar. The relationship between the two in which one currency is purchased from (or sold to) a counterparty against delivery (receipt) of a second foreign currency.
"Currency" - A Foreign Currency or U.S. Dollars.
"Customer" - The party (or parties) executing this Agreement and in whose name the Account is maintained.
"Customer Account Application" or "Application" - The GAIN Capital Customer Account Application, including all applicable addenda ("Addenda") thereto.
"Daily Cut-off" - The point in time selected for each Business Day by GAIN Capital to signify the end of that Business Day. The Trade Date of any Contract entered into after the Daily Cut-off shall be the next Business Day. The Daily Cut-off will occur at a time selected on any Business Day by GAIN Capital in its sole discretion and may vary from day to day.
"Day Only Order" - An Order that cancels automatically at or before the close of the Business Day, unless previously filled or canceled.
"Deal Blotter" - Listing of all deals executed during a specific time period. Deal Blotter is part of the GAIN Capital Online Trading System.
"Demo Trading System" - the demonstration Trading system available on the Website.
"Dollar Value" - The amount of US currency that would be generated by the conversion of the relevant Foreign Currency into U.S. Dollars at GAIN Capital's prevailing exchange rates.
"Eligible Foreign Currencies" and "Tradable U.S. Dollar-based Currency Pairs" - Those Foreign Currencies which GAIN Capital, in its sole discretion, may agree from time to time to buy from or sell to its Customers.
"Event of Default" - The occurrence of any one of the following: (a) the death or judicial declaration of incompetence of Customer, if Customer is a natural person; (b) the filing of a petition in bankruptcy, or a petition for the appointment of a receiver, or the institution of any bankruptcy, insolvency or similar proceeding by or against Customer; (c) the filing of an attachment against any of Customer's Accounts carried by GAIN Capital; (d) failure to pay when due any amount due under this Agreement or any Contract or other transaction hereunder or to deliver to GAIN Capital when due any Margin or Collateral required or requested by GAIN Capital in connection with this Agreement or any Contract or other transaction hereunder; (e) Customer's failure to promptly provide GAIN Capital any information requested pursuant to this Agreement; (f) any representation made by Customer in this Agreement (including the Annexes) is or at any time becomes, untrue or incorrect; and (g) any breach by Customer of any other provision of this Agreement, including the Annexes.
"Excess Margin Deposit" - The amount of funds or Market Value of Collateral (other than cash) in excess of Posted Margin. Excess Margin Deposit can be maintained in Customer's Account.
"Execution Screen" - That part of the GAIN Capital Online Trading System that permits the Customer to execute a trade by entering the number of lots and clicking "Buy/Sell."
"Fill" or "Filled" - A deal executed on behalf of a Customer's Account pursuant to an Order. Once filled, an Order cannot be canceled, amended or waived by Customer.
"Foreign Currency" - The legal tender issued by and acceptable for the payment of obligations under the laws of one or more counties, other than the United States of America.
"Foreign Exchange Contract" - Any effectuation between the parties for the purchase by one party of an agreed amount in one currency against the sale by it to the other of an agreed amount in another currency, both such amounts either being deliverable on the same value date or, if the parties have so agreed, being cash settled in a single currency.
"Foreign Exchange Rate" - Generally, the rate of exchange between two Currencies that are freely and legally tradable on international interbank markets.
"Foreign Exchange Trading" - Trading in Foreign Exchange Contracts or Cross Currency Contracts.
"GAIN Capital Online Trading System" - That part of www.gaincapital.com where the Customer can log on to execute and manage trades.
"GAIN Capital Trading Desk" - The trading desk of GAIN Capital.
Gold Certificate - A certificate of ownership that gold investors use to purchase and sell the commodity instead of dealing with transfer and storage of the physical gold itself.
Gold Contract - The standard unit of trading gold is one contract which is equal to 10 troy ounces.
"Gross Basis" - Open Positions, calculated without the benefit of any netting between Long and Short Positions.
"Good 'til Canceled Order" or "GTC Order" - An Order (other than a Market Order), that by its term is effective until cancelled by Customer.
"Initial Margin Requirement" or "Opening Margin Requirement" - The minimum Margin Balance necessary, at the sole discretion of GAIN Capital, to establish a new Open Position.
"Introducing Broker" - A person or corporate entity which introduces accounts to FOREX.com for a fee.
"Limit Order" - An order (other than a Market Order) to buy or sell at an agreed price. A Limit Order to buy generally will be executed when the ask price equals or falls below the price or exchange rate as specified in the Limit Order. A Limit Order to sell generally will be executed when the bid price equals or exceeds the price or exchange rate specified in the Limit Order. Customers should note, however, that market conditions may often prevent execution of an individual Customer's Limit Order despite other dealing activity at that price level.
"Liquidating Order" - An Order to close out one or more Open Positions.
"Long Position" - An Open Position that results from the purchase of the Base Currency.
"Maintenance Margin Requirement" - The minimum Margin Balance necessary, at the sole discretion of GAIN Capital, to maintain Open Positions in Customer's Account.
"Margin" - The amount of cash that GAIN Capital requires Customer to deposit or maintain in Customer's Account as collateral for Open Position(s).
"Margin Call" - A demand for the deposit of additional Margin as described in Paragraph 5.10 of the Trading Policies and Procedures.
"Margin Balance" - Account Balance plus Unrealized Gains/Losses. This is used in determining the Total Available Open Positions the Customer is authorized to have and is equal to the Account Balance inclusive of Unrealized Gain/Loss.
"Market Order" - An order to buy or sell the identified Currency, or pairs of currencies, at the current market price. An order to buy is executed at the ask price; an order to sell is executed at the bid price.
"Market Value" - The Dollar Value, determined by GAIN Capital in its sole discretion, that GAIN Capital would receive if it sold any Collateral for immediate delivery in the relevant market.
"Marking to Market" or "Marked to Market" or "Mark to Market" - The process of recalculating the theoretical value of Open Positions in a Foreign Currency trading Account, assuming all Open Positions were liquidated at current market rates, as determined by GAIN Capital in its sole discretion. Customer Accounts are generally marked to market at a specified time and Spot Rate in order to estimate and report the Account Balance in U.S. Dollars and measure Margin against Open Positions.
"Notice of Withdrawal" - A request by Customer to withdraw funds from Customer's Account.
"One Cancels the Other Order" or "OCO" - Two Orders that are linked. If one Order is executed, the other is cancelled.
"Open Position" - Whereby you have executed a trade and entered into a position, either long or short, for which no offsetting transaction has been entered into. Open Positions include Long Positions and/or Short Positions. Open Positions that have been Marked to Market contain a theoretical gain or loss.
"Opening Transaction" - An order that, when executed, establishes a Long Position or Short Position or increases an existing Long Position or Short Position in Customer's Account.
"Order" - Generally, an instruction by Customer (or Customer's authorized Trading Agent) to GAIN Capital to attempt to execute a trade for Customer's Account.
"Over-the-Counter" or "OTC" - Off-exchange markets in which market participants, such as GAIN Capital and Customer, enter into privately negotiated Contracts or other transactions directly with each other.
"Point" or "Pip" - The smallest unit of price for any Foreign Currency (e.g., for USD/CHF one point (or pip) equals .0001 Swiss Francs and for USD/JPY one point (or pip) equals 0.01 Japanese Yen).
"Position Management Screen" - List of all Open Positions and associated Unrealized Gains/Losses that appears in the GAIN Capital Online Trading System.
"Posted Margin" - That part of the Margin Balance that is posted to GAIN Capital in support of the Customer's Open Position and unrealized losses.
"Profit / Loss" or "P/L" or "Gain/Loss" - The actual gain or loss in U.S. Dollars resulting from trading activities on Closed Positions, plus the theoretical gain or loss on Open Positions that have been Marked to Market.
"Realized Gain/Loss" - The actual gain or loss resulting from closing an Open Position.
"Required Margin" - A sum equal to (x) the greater of the Initial Margin Requirement or (y) the Initial Margin Requirement plus Unrealized Losses on Open Positions, if Unrealized Losses exceed the Maintenance Margin Requirement on Open Positions.
"Short Position" - An Open Position that results from the sale of the base Currency.
"Spot Contract" - A Contract where the Value Date is two Business Days (or one Business Day where the Contract involves the U.S. Dollar against the Canadian Dollar) following the Trade Date, or such later date as may be customary or necessary in respect of any currency unit.
Spot Market - A physical market in which foreign currencies and commodities are bought and sold for cash at the current market price, settled “on the spot” and delivered immediately.
Spot Trade - The purchase or sale of a foreign currency or commodity for immediate delivery (as opposed to a date in the future). Spot contracts are settled electronically.
"Spot Rate" - The rate of exchange between two (2) Foreign Currencies for "Spot" value (normally settlement in two Business Days), generally quoted either in "U.S. Terms" (price of one unit of Foreign Currency expressed in U.S. Dollars and Cents) or in "European Terms" (price of one U.S. Dollar expressed in units and decimals of the Foreign Currency).
"Stop/Loss Order" - Order type whereby an open position is automatically liquidated at a specific price. Often used to minimize exposure to losses if the market moves against an investor's position. As an example, if an investor is long USD at 156.27, they might wish to put in a stop loss order for 155.49, which would limit losses should the dollar depreciate, possibly below 155.49. Refer to Trading Handbook for GAIN Capital's Stop Loss Policy.
"Trade Date" - with respect to any Contract, the date on which the Contract is entered into between GAIN Capital and Customer, except in the case of any Contract entered into after the Daily Cut-off following, but before the next relevant Business Day, in which case the Trade Date shall be the next following Business Day.
"Trading Agent" - A third party person or entity that is legally authorized by Customer to act as agent and attorney-in-fact to purchase and sell (including short sales) foreign currencies, on margin or otherwise, and/or foreign currency option contracts for Customer's account and risk.
"Trading Policies and Procedures" - The GAIN Capital Trading Policies and Procedures, as the same may, from time to time, be revised, updated or amended by GAIN Capital, in its sole discretion.
"Unrealized Gain/Loss" - The theoretical gain or loss on Open Positions that have been Marked to Market, as determined by GAIN Capital in its sole discretion.
"U.S. Dollar" - The legal tender issued by and acceptable for the payment of obligations under the laws of the United States of America.
"Value Date" - The day that the currency would be physically delivered (or payable) if GAIN did not automatically roll over clients positions at the end of the each Business Day.
"Website" - GAIN Capital's website at www.gaincapital.com.
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