Trading Policy 2017-08-04T21:27:49+00:00

Market Orders

Immediate execution: We are careful at Caveo to execute all orders on the customer’s desired price, but sometimes prices move very swiftly due to trading at market rapid movements, like trading while critical economic news or incidents or other market motives are happening. And as Caveo passes all deals to market directly without any mediation, the deal could be executed on a higher or lower price than the desired one with full transparency, whether the price is with or against the customer favor. Caveo couldn’t control this since we use our automated execution system which works without any human intervention at all.

Market Execution: Deals are executed completely in market in coordination with number of banks and price providers, so Caveo ensures to select the best banks and corporations, those who can provide our customer unique executions for deals.

Limit Orders

Buy Limit: This order is activated when the Ask price reaches the buy limit order. The activated order get executed on the next available price or rejected when no price is available. The order is executed on the whole amount, but may be executed better or worse than the requested price. The same policy is applied on Take Profit Orders.

Sell Limit: This order is activated when the Bid price reaches the sell limit order. The activated order get executed on the next available price or rejected when no price is available. The order is executed on the whole amount, but may be executed better or worse than the requested price.

 

Stop Orders

Buy Stop: This order is activated when the Ask price reaches the buy stop order. The activated order get executed on the next available price or rejected when no price is available. The order is executed on the whole amount, but may be executed better or worse than the requested price. The same policy is applied on Trailing Stop Orders.

Sell Stop: This order is activated when the Bid price reaches the sell stop order. The activated order get executed on the next available price or rejected when no price is available. The order is executed on the whole amount, but may be executed better or worse than the requested price. The same policy is applied on Trailing Stop Orders.

Stop Out Policy (Margin call)

Caveo trading platform is designed to automatically close open positions when you reach the stop out level (Margin Call), and it is 50% of Margin Level.

Margin Calculation

Margin is calculated using the following method which could be applied on all currency pairs, commodities and stock indices:

Requested margin = current price × leverage amount × contract amount × No. of open positions

Example 1: If you need to buy only one standard contract for EUR/USD at 1.1232 with leverage 1:100

So the requested margin = 1.1232 × 1/100 × 100000 × 1 = 1123.2$

Example 2: If you want to buy two mini contracts for AUD/USD at 0.76365 with leverage 1:400

So the requested margin = 0.76365 × 1/400 × 10000 × 2 = 38.18$

We shouldn’t override the following points when calculating the requested margin for any pair, commodity or stock index:

Requested margin changes with the change of the current price, even with slight changes.

Requested margin changes with the change of contracts amount and number.

Money leverage affects the amount of margin needed for the position. The higher the leverage amount is, the lower the margin amount is detained. Also you should consider risks of using money leverage.

When a client has gold deals less than 5 million dollars and adds new deals so as to make the amount of total deals 5 million dollars and less than 8 million dollars, so the spread at the time of executing the new deal will be extended to 0.2$ per ounce.

Also when a client has gold deals less than 8 million dollars and adds new deals so as to make the amount of total deals 8 million dollars or more, so the spread at the time of executing the new deal will be extended to 0.3$ per ounce.

 

Amount of deals is calculated as follow: No. of contracts × 100 × price of ounce.

Example: 40 gold contract × each contract is 100 ounces × 1320$ per ounce = 5280000$

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