A

• Account balance refers to the balance in your account, regardless of open positions.
• Ask indicates the purchase price or purchase rate of the underlying asset and is also referred to as the selling rate.
• Ask price refers to the price for which a basic currency of a selected currency pair can be bought.

B

• Bank business day refers to each business day, except for state holidays, which apply at the location of the bank’s seat.
• Basic price refers to the price of the underlying asset.
• Basic currency refers t the first currency from the currency pair, such as EUR/USD: in this case the basic currency is the euro. The basic currency can also be referred to as the primary currency.
• Bid refers to the selling price or selling rate of an underlying asset and is also referred to as an offered price.
• “Buy stop” order refers to a placed order from a client to a bank, based on which the bank is supposed to open the position of an individual transaction, if the price of the position falls below the level set by the client or exceeds it, so that it is possible to enter into the position on time upon a rise or fall of the value of the underlying asset.

C

• CFD or Contract for Difference refers to a derivative based on fluctuations in the price of an underlying asset. A CFD linearly reflects the development of the price of an underlying asset.
• Cancel refers to deletion of an order.
• Conclusion of trading refers to conclusion of trading at the end of the particular trading day.
• Conflict of interests refers to conflicting interests of at least two contracting parties.
• Contracting Party refers to a bank or another market participant with whom an execution transaction has been arranged.
• Contract refers to a contract standardized based on the specifications and concluded between two parties, which is the lowest tradable unit on a relevant term exchange, governed by business habits applicable at its location.
• Contract value (volume) refers to the result of multiplication of the rate and the number of contracts at a given time.
• Costs refer to fees and taxes as well as other expenses stemming from a general list of fees and a list of bank prices and services.

D

• Derivative refers to a financial instrument relating to an underlying asset. The price of the derivative is derived from the development of the price of the underlying asset. Derivatives may also include futures, such as option certificates, options and term contracts. However, not all derivatives are forward transactions (this applies, for example, to CFDs for shares).

E

• • Expiration deadline refers to the day when the right to purchase or sale of a CFD contract or term contract for the price of an underlying asset ends and when a new contract will be available.
  • Equity refers to the available equity in your account. It is calculated from the account balance +/− regular profits/losses
  • Execution type indicates the method of execution of an order (a trade order for a market price / a pending order).
  • Execution transaction refers to a transaction conducted for the purpose of execution of an accepted order.
  • Execution price refers to a price ceiling for which an order can be executed (the required execution price ceiling), or will actually be executed (actual execution price ceiling).
  • Execution place refers to the market or exchange where the order shall be executed.

F

• Foreign currencies indicate currency pairs such as EUR/USD, AUD/USD, EUR/JPY.
• Forex is an abbreviation for foreign exchange, which includes markets and trade transactions on the currency market.
• Future indicates a binding exchange contract between two parties, which regulates the delivery (for sellers) or receipt (for buyers) of an exactly defined subject of a contract (underlying asset) in a certain quantity (contract size) and quality in relation a fixed future date (term) for a market price, which applies at the time of signing of the contract.
• Free margin refers to the available margin in your account.
• Financial institution where the account is held refers to a provider of financial services with permission to conduct investment transactions pursuant to Sect. 1 Art. 1, Sentence 2, No. 1 of the Credit Act, at which a commercial bank account is held.

G

• Graph refers to a graphic illustration of the development of the price/rate of an underlying asset.
• Good-Till-Cancelled (GTC) refers to a type of order. The order “good till cancelled” is valid until the order is executed or the trader decides to cancel it.

H

• Half turn refers to opening of a long or short position.
• Hypothetical profit (accounting profit) for a certain moment refers to the sum of hypothetical profits from individual transactions not yet concluded via mutual trades, with these profits having been converted based on the conversion rate to the account currency and calculated based on a relevant usable rate.
• Hypothetical losses (accounting losses) for a certain moment refers to the sum of hypothetical losses from individual transactions not yet concluded via mutual trades, with these losses having been converted based on the conversion rate to the account currency and calculated based on a relevant usable rate.
• Hedging refers to a type of trading during which both long and short positions of the same financial instrument are open.

I

• Indicative settlement price refers to the price reported by the relevant exchange, for which settlement is carried out in the case of extraordinary circumstances or suspension of trading.
• Introducing Broker (IB) refers to the broker through whom arrangements with clients are directly made in exchange for commission.

K

• KWG refers to the German Credit Act of 9 September 1998, as amended.

L

• Leverage indicates a multiplier based on which the development of the price of underlying assets are reflected in the client’s deposit. For lever trades, the client must provide only a fraction of the contract value (margin), but shall fully participate in the development of the price of the underlying asset.

M

• Mutual trade refers in relation to an individual transaction to a contradictory spot trade with the same underlying asset in the same contract quantity; in the event of a short position, the relevant long position corresponds to it, and vice versa.

N

• Number of contracts refers to the number of traded parts of an underlying asset (such as shares or lots).

O

• Offer Price (BID) refers to the price for which a basic currency of a selected currency pair can be sold.
• Ordinary account number refers to the number of the margin account held at Bernstein Bank, which has been assigned to a client and under which, among other things, individual transactions are billed.

P

• Partial closing refers to closing of part of a position; this part does not correspond to the overall amount of the originally opened position.

R

• • • Reference account refers to referential bank account information for the account held in the client’s name at an investment credit institution, of which the Client has notified the bank in a completed questionnaire. This is where all payments by the bank are conducted.
    • Regulations refer to legislation issued by a regulatory body in order to ensure fairness in our business practices.
    • Round turn refers to opening and closing of a long or short position.
    • Rates refers to current tradable prices of available underlying assets in an online trading platform or another information medium.

S

• • • Second currency refers to the second specified currency from the currency pair; for example, in the EUR/USD pair, the second currency is USD. The second currency can also be referred to as the secondary currency.
    • Settlement price refers to the price for which an open position is closed/settled.
  • • Short position refers to a position of a seller of a derivative trade, for which the speculation is carried out regarding the decrease in value of an underlying asset.
    • Specifications (if applicable) refer to further specifications of a derivative trade related to the quantity, underlying asset, delivery location and quality.
    • Spread refers to the difference in pipes between demanded and offered prices.
    • “Stop loss” order indicates issuance of an order by the client to a bank, based on which the bank is to close an open position of an individual transaction, if the price of this position falls below the ceiling set by the client or exceeds it. One of the purposes is to ensure the position held by the client compared to large exchange rate losses.
    • Stop Out level indicates closing of a position, if the value of equity in the account falls below the “stop out level”.
    • Swap refers to crediting or debiting of one-day forex interest, which shall appear when a position is held overnight and which are credited to or debited from the client’s account.
    • Swap rate in a forex transaction refers to (positive or negative) forex interest for holding a position overnight, which was set at the time of closing of the trading on the particular trading day in accordance with the instructions in the List of Prices and Services.
    • Solid spread refers to price spread defined as a certain number of pips in usual market conditions. Volatile or non-liquid markets can cause an increase in spread.
    • Spot trade refers to a contract which must be settled directly after it is entered into, but no later than within two days.

    T

    • Trading account refers to an individual or collective account in the bank’s own name, but at the expense of the client held by the bank at the financial institution to which the client transfers the funds that the client intends to invest. The trading account in your name, which will be maintained at Bernstein bank in your name, will display all orders and transfers.
    • Trading platform technically labels the front-end system, with the help of which electronic trading is conducted via the internet. An example of the trading platform is MetaTrader4 (terminal).
    • Trading day refers to the day(s) when it is possible to trade with original underlying assets.
    • Transaction (trade) indicates the purchase or sale of financial instruments.
    • “Trailing stop” order indicates issuance of a client’s order to the bank, based on which the bank is to close a position, if the price of the position falls below a dynamic level set by the client or exceeds it, so that it will be possible, for example, to ensure already achieved profit from a position held by the client against rate losses.

U

• • • Underlying asset refers to the subject of a contract for a derivative trade, which serves as a basis for realisation and appreciation of a derivative transaction. Underlying assets can be shares, bonds, commodities, indices and/or separate derivative trades.

V

• • • Variable spread refers to a spread that has a target, but which is variable due to market conditions.