Rumus terms and conditions

Spreads

Rumus has the option to place trades with instant execution or use RFQ (Request For Quote) during volatile markets if a trader wishes to trade with guaranteed no slippage or re-quotes.

Forex Club guarantees that our spreads in the Rumus platform are fixed under normal market conditions. The price you see in the Bid/Ask window is the price you will get.

**Guaranteed fills, only available under Request For Quote Mode.

Trading hours

The Forex market opens at 21:00 GMT on Sunday and closes at 21:00 GMT on Friday. Forex Club's trading platform is open throughout the whole global session. Forex Club also provides an over-the-phone trading service.

Minimum Lot Size

Minimum lot size is 10,000 units.

Maximum leverage

• 50:1 if the transaction amount is below 30,000,000 units of base currency.
• 20:1 for trading amount exceeding 30,000,000 units of base currency.

Orders

The available types of orders include Stop-Loss, Take Profit, OCO, and If Done. All orders are GTC (Good till Canceled). All orders other than market orders may be placed no closer than 10 pips from the current market price.

The price indicated in the order shall differ by 10 or more points from the price which is shown in the dealing rate window as of the moment the order is issued. For BUY orders the above difference shall be calculated based on the ASK price of the current quotation and for SELL orders it shall be calculated based on the BID price. The Company has the right to refuse to execute those orders that violate the provision above. The Company also reserves the right to increase the minimal difference between the order price and the current price in the event of increased volatility and lowered liquidity on the market before the news publication, as well as before the end of the trading day on Friday.

Equity Level

An account equity level is the ratio of equity to initial margin expressed as a percentage. This level is calculated as follows:

Equity Level = Equity / Initial Margin x 100 %,

Equity = Balance - or + PL

Example:

Your trading account balance is $3,500. In order to open a position of 50,000 EUR at the rate of 1.3500 using 50:1 leverage, you will need 50,000* 1.3500 *2% = $1,350 of initial margin requirement. Given that the floating profit/loss for the position is +$500, the Equity will be 3,500 + 500 = 4,000, which means that the Equity Level will be: 4,000/1,350 x 100 % =  296.29%.

Stop Out Order

Effective as of June 12, 2011.

In order to limit losses caused by the use of excessive leverage and margin requirements, Forex Club will take action to automatically close clients' positions in the event that their account’s equity level reaches or drops below the stop out level.  By initiating an automatic stop out order, a client can continue to maintain a positive balance and limit his exposure to market risk.

A stop out order is initiated when a client’s equity level reaches 50%, or when the ratio of equity to used margin decreases to 50%.

The equation used to calculate the amount of loss incurred if your equity level reaches 50% is as follows:

Amount of Loss when Equity Level is at 50% = Used Margin X 0.5 - Balance

Example:

A trader with an account balance of $3,500 and several opened positions has used margin of $2,000.  The equation to calculate the total loss at the time when the equity level is 50% would be:

$2,000 x 0.5 - $3,500 = -$2,500, i.e., when the total loss reaches or exceeds -$2,500, all of the Client’s positions will be automatically closed.

There are situations, such as price gaps, when the equity level would be lower than the established stop out level.  When this occurs, the actual amount of loss will be calculated according to the following formula:

SWAPs

Forex trading is a SPOT trading, which means that all trades are settled on the second business day after your position has been opened. SWAP operation is used to avoid the physical delivery of a currency. In essence, in the end of each trading day, all positions are closed and immediately re-opened at SWAP price. SWAP is executed automatically within several minutes after 21:00 GMT.

In your trading report, you will see two lines: closing of position (SWAP t/n) and opening of the same position (SWAP open). Re-opening rate will be adjusted for SWAP pips. SWAP pips are determined by the interest rate for currencies that are used in the position. You can find our exact values of SWAP pips below.

Value date (date of delivery of currency) for trades carried from Wednesday to Thursday is Monday. Hence, SWAP pips will be calculated for three days. See SWAP calculation example

Current SWAP pips are available in Trading Platform.

Selecting the mode of quotation

By clicking on the  toolbar button inside Rumus platform, you can select "Properties". In the  "Properties" tab, the task bar shows the current quotation setting of Rumus.  You can select the desired mode of quotation In "Transactions".

Quotation Mode - technical process of the current price of the transaction. Forex Club offers two modes of quotation - Request For Quote and Instant Execution.

Request For Quote (by request) - a mode of quotation which takes a few seconds to lock in on a specific market price provided to you. You make a price request first, and then decide whether or not to trade at the price that is provided to you.

Instant Execution (instant) - a mode of quotation which allows traders to place trades with instant execution. You click on the price you want to trade, and your deal is executed instantly.

Request For Quote Mode means the transaction may be concluded at a price that is the same with what server receives from the clients. This price may differ by an undetermined degree from the price at which the client confirms the transaction. This can occur during volatile market, for example, during a news publication.

Traders may select one of two methods when using Instant Execution.  These two methods are: executing at the actual price and executing within a market range.  To execute at the actual price means that, by default, a Client agrees to accept the best price available on the server.  To execute within a market range means that a Client agrees with any price that is actual on the server and that differs from the current price at the moment that an order is initiated in the trading platform.  If the difference between the price on the server and the price shown in the platform is no more than the market range (which was set by the Client), the deal is made.  If this condition is not met, an additional request to make a deal at a newly changed price will be sent to the Client.

Initial Margin Requirement and Notional Value

Margin serves as collateral to cover any losses that you might incur. Since nothing is actually being purchased or sold for delivery, the only requirement, and indeed the only real purpose for having funds in your account, is for sufficient margin.

Initial margin requirement and notional value examples:

Balance = $10,000
Margin Requirement = 2%
To open 100,000 EUR position with current EUR rate 1.3500
100,000 * 1.3500(current EUR rate) * 2% (margin requirement) = $2700 margin required to open a 100,000 EUR position

This position used margin $2700, and the remaining usable margin equals to $7300, assuming that new position has 0 profit or loss.

Partial Closing and Reversing Position

When you partially close your position, balance will be adjusted accordingly to your current PL for the closing part.

When you reverse your position, currently open position will be closed and balance will be adjusted accordingly to your current PL at the time of reversal. Then your opposite position will be opened, also consider available margin for opposite position.