Hedging is taking on both Long and Short positions of the same size in the same product simultaneously in order to reduce the risk in an adverse market. This involves opening a position in the opposite direction of the same size as the initial opened position. Hedging will reduce the initial margin to ¼ of the original amount.
BCR's trading platform will automatically liquidate all opened orders when client's Total Equity balance falls below 100% of the Initial Margin Requirement. Derivative Markets can be volatile, and Clients should be aware that prices on CFD instruments may fluctuate rapidly over wide ranges. Prices depend on a number of factors, including interest rates, supply and demand, and government actions. Clients should keep in mind that during such volatile market conditions Stop Loss orders may not be honored at the price requested by the Client. It is possible that the market may "skip" the Stop Loss order price due to a significant market event.
Limit Order / Stop Gain / Stop Loss
When there is a price gap during volatile market conditions, pending orders may be cancelled if the current market price reaches the designated order price but the trading account has insufficient margin.
An order to execute a transaction in anticipation of the CFD price, having reached a certain level, will continue to increase.
An order to execute a transaction in anticipation of the CFD price, having reached a certain level, will continue to fall.
An order to execute a transaction at a specified price (the limit) or lower.
An order to execute a transaction only at a specified price (the limit) or higher.
Pending Orders on Weekends / Friday / Holidays
Upon the market re-opening on Monday or after a Holiday, the price may have gapped. Take Profit Orders/Stop Loss Orders are not guaranteed to be executed at the prices set by the customers. They will be honored at the executable price after the market opens.
Irregular/Illegal Trading Definitions and Practices
Irregular/illegal trading definitions and practices include but are not limited to:
- Trading Accounts that routinely open and close multiple positions within 1-3 minute time frames, or use the Pending Order function for irregular opening and closing of positions.
- An abnormal change in trading volume. For example, typical transaction size changes from 0.1 to 0.5 per lot into 2-20 per lot.
- Frequent trading activity around economic data releases, frequently opening hedged transactions around the economic data releases, and creating multiples pending close orders around narrow price windows.
- Using two or more trading accounts to hedge transactions against each other.
- Using malicious software or plug-ins to affect the functionality of the trading platform.
If BCR’s Compliance Department suspects any irregular or illegal activity on any trading account, the account's funds will be frozen, and there will be in-depth investigation that may take up to 30 business days. If clients were referred to BCR by a Referral Party, the rebates and commissions generated by the account will also be frozen, pending the completion of an investigation.
If it is confirmed that irregular/illegal trading has occurred, BCR has the right to terminate the trading account immediately, and release the balance of the account back to the Client (excluding any profits arising from irregular/illegal transactions). The rebates and commission generated by the account will not be released, and BCR will retain the right to cancel the Referral Party Agreement, and pursue further legal action at the company's discretion.
BCR retains the right of the final interpretation of what constitutes irregular or illegal trading.
To ensure quality service, when a Client's local internet, personal computer, or electronic trading platform fail to function properly, telephone transactions can be placed. Client account numbers and passwords are needed to perform telephone transactions. Phone passwords are provided for trading accounts upon opening.
Telephone transactions are for trading purposes only. No financial advice will be provided.
Daily and monthly statements may be printed from the trading platform for reference. It is very important to check the content of the reports in detail and notify BCR within 2 business days if there are any errors and/or discrepancies on the report. After 2 business days, any corrections and/or adjustments to any errors or discrepancies will be made solely at the discretion of BCR.
Changes to Trading Rules
BCR reserves the right to make any changes to the trading rules. Changes in Margin Requirements will be announced on BCR’s website and will take effect immediately.