Keytrade Pro Futures Conditions
Futures - terms and conditions
Transactions in futures are realised according to a margin system offering a significant leverage effect. Furthermore, the impact on the market is much more substantial than the size of the investment.
Customers are required to permanently keep the maintenance margins listed under each contract in their account. If the funds in customers’ accounts fall below the required margin, they will be asked either to cover their positions with an additional deposit or to close their positions – customers will normally be informed via the trading platform and via email. If the situation is not resolved, Keytrade Bank reserves the right to close positions on behalf of the customer.
In case of partial execution of limit orders, the unexecuted fraction of the order remains on the market as a limit order and may be executed within the limits of the duration of the order.
Market orders can be executed at different levels. The price paid will be equal to the volume-weighted average price of all executions.
Special conditions for futures on the Sydney Futures Exchange (SFE)
Market orders are not accepted on all contracts. You use limit orders to achieve the ask/bid.
A limit buy order cannot be greater than the current bid, and a limit sell order cannot be less than the current ask. If the order is sent at a time when a fluctuation occurs in the market, it is likely to be rejected by the exchange. In this case, please resend the order.
Stop orders without a stop limit are not accepted on the platform. The limit price indicated in a stop limit order cannot exceed the limit price of three price ticks. If this is the case, the platform will present the order as accepted. However, please note that if the order reaches and/or exceeds the limit price, it will not be executed. In which case, the order will then be deleted from the system.
Maturity date of futures
Keytrade Bank does not provide physical delivery of the securities upon maturity of a futures contract. In addition, Keytrade Bank advises its customers to inform themselves of the maturity dates and first notice days of futures contracts in which they hold positions and to ensure to close them before the required dates, as explained below.
- If the first notice day is earlier than or the same as the maturity date, the positions need to be closed one business day before the first notice day.
- If the maturity date is earlier than the first notice day, the positions should be closed no later than the maturity date.
If futures positions are not closed before the relevant date, Keytrade Bank will close the position on your behalf at the first available opportunity at the prevailing market rate. Any resulting costs, gains or losses will be passed on to you.
Note that times shown are those local to the stock exchanges. Please contact us should you have any enquiries regarding this document.
- Special conditions for Euronext Paris Commodities contracts (Matif) For contracts in Milling Wheat, Corn, Rapeseed & Malting Barley, Keytrade Bank follows the rules of the stock exchange with effect in the 5 days preceding expiry. For instance: - Short positions in such contracts may be closed within the five days preceding the first expiry date, every day at 16:00 CET.- All open positions will be closed one day before the expiry date when the rules apply.
Any breach of these measures will result in the closure of positions by Keytrade Bank at the earliest opportunity and at prevailing market rates. All costs, profits or losses will be passed on to the customer.
Customers are welcome to contact Keytrade Bank for assistance or further explanation regarding the expiry of futures contracts.
Conversion of profits and losses
Conversions of transaction costs as well as profits and losses resulting from the transactions are made based on the New York closing price (17:00 New York time) plus/minus 0.5%.
Futures position management
We are using FIFO netting on futures positions.
This means that futures trades must be closed in the order they were opened; platform features which allow traders to close trades in a different order will be removed:
- Individual trades in a global position cannot be closed directly
- Traders cannot place related stop and limit order to close specific trades
To close or reduce a position, traders can place a trade using either the Close button on the position or by placing a trade using the Trade Ticket.
Stop loss and take profit orders cannot be related directly to individual trades. Independent stop and limit orders can be placed instead and managed separately to the position – if traders manually close a position, they must also manually cancel any orders.