Dealing
Desk
+1 617 357
0688
Home
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TRADERS
HANDBOOK
| Account
Statements |
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Account
statements are available for printing on-line at any
time. |
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Calculating
Profit and Loss
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Profit and Loss (P&L) for every position is done
in "real time" on the trading system. This
enables customers to view the P&L in their account
instantaneously as the market moves.
Approximate USD values for a one (1)
"pip" move per contract in our traded currency
pairs per 10,000 units of the base currency are as
follows:
EUR/USD
Pip value = .0001
$ value of 1 pip = $10,000 x .0001 = USD $1
USD/CHF
Pip value = .0001
$ value of 1 pip = $10,000 x .0001 ÷ Spot Price of
CHF (1.4825) = Approx USD 67¢
GBP/USD
Pip value = .0001
$ value of 1 pip = $10,000 x .0001 = USD $1
USD/JPY
Pip value = .01
$ value of 1 pip = 10,000 x .01 ÷ Spot Price of Yen
(116.82) = Approx USD 86¢
USD/CAD
Pip value = .0001
$ value of 1 pip = 10,000 x .0001 ÷ Spot Price of
CAD (1.5340) = Approx USD 65¢
AUD/USD
Pip value = .0001
$ value of 1 pip = 10,000 x .0001 = USD $1
EUR/GBP
Pip value = .0001
Value of 1 pip = 10,000 x Spot Price of Euro (.9815)
x .0001 ÷ Spot Price of GBP (1.5744) = Approx USD
62¢
EUR/JPY
Pip value = .01
Value of 1 pip = 10,000 x Spot Price of Euro (.9815)
x .01 ÷ Spot Price of Yen (116.82) = Approx USD 84¢
GBP/JPY
Pip value = .01
Value of 1 pip = 10,000 x Spot Price of GBP (1.5744)
x .01 ÷ Spot Price of Yen (119.91) = Approx USD $1.31
EUR/CHF
Pip value = .0001
Value of 1 pip = 10,000 x Spot Price of EUR (.9815)
x .0001 ÷ Spot Price of CHF (1.4825) = Approx USD
66¢
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Currency
Pairs
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NZ-ICE
offers trading in the following currency pairs: EUR/USD,
USD/JPY, GBP/USD, USD/CHF, USD/CAD, AUD/USD, EUR/GBP,
EUR/JPY, GBP/JPY and EUR/CHF. |
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Dealing
Spreads
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NZ-ICE
offers 3 points spreads in the major currencies (USD/JPY,
EUR/USD, USD/CHF, GBP/USD) Prices quoted are inclusive
of our normal dealing spreads. However, during periods
of market volatility or when major economic news is
released spreads may widen. The spreads are the same
for Retail customers and Institutional customers on
all currencies. |
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FDIC
Insured Funds
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All
deposits are made to and held by the Commerce Bank and
Trust (Massachusetts, USA) and not NZ-ICE. All deposits
are FDIC insured up to USD $100,000 per depositor.
Trading positions are not insured
and are subject to investment risk, including possible
loss of the principal invested.
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Fees
and Schedules
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The
Commerce Bank does charge the following fees which are
deducted from any expedited funds:
Incoming National or International
Wire Transfer: No charge
Outgoing National or International Wire Transfer in
USD - $15
Returned checks -$25
To deposit or withdraw funds at any
time, fill out and sign the appropriate form. In order
to withdraw funds, all open positions must be closed.
Requests to withdraw the funds will be processed within
two business days.
Deposit
Instructions Withdrawal
Form
For any additional information, please
call the Commerce Bank at +1 617 357 0688
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Interest
on Deposits
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Accounts
with $500,000 or more in deposits earn the daily inter-bank
interest rate. |
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Leverage
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NZ-ICE
enables foreign exchange margin currency trading to
be conducted at a maximum leverage of 100:1. Clients
who wish to trade at a reduced leverage may do so and
this will be programmed and set on their individual
trading platform.
The equity in an account is the value
of the funds in the account adjusted for floating
positions. One lot has an approximate market value
of 10,000 units of the base currency. A requirement
of $2100 in equity per open lot is equal to the maximum
leverage of 100:1. The Dealing Desk constantly monitors
the leverage levels of all accounts. NZ-ICE does not
attempt to contact clients whose accounts are near
the minimum equity requirement for their open positions.
Clients are fully responsible for monitoring the activity
in their accounts.
In the event that an account exceeds
its maximum allowable leverage, Commerce Bank has
the right to and will immediately close all open positions
in the account. This closing of all open positions
will occur regardless of the size or the nature of
the open positions held in the account.
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Margin
Requirements / Margin Calls
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Initial
Margin Requirements:
A minimum of 1% on all accounts.
Margin Calls:
Margin calls only occur if the remaining equity goes
below the initial margin requirement. In a margin
call, all open trades are automatically closed regardless
of the size of the trades or the number of open positions.
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Order
Confirmation
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Deals
are confirmed on screen, typically within one second.
Full transaction details may be accessed on screen as
well, including date, time, rate, amount bought or sold,
USD value and reference number. |
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Order
Types
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The
NZ-ICE trading platform supports all standard order
types as well as providing sophisticated order entry
and tracking. Orders may be entered at any rate inside
or outside the existing spread, using the following
order types:
Market
Order
Market order is an order to buy or
sell any specific currency, which is to be filled
immediately at the current exchange rate quoted on
screen. From the "Dealer's Rates" window,
click on the currency pair you wish to trade, then
select the transaction size. You can then click "OK"
to confirm. If unable to fill the order at the specified
rate, the platform will send the client a new price
representing the current market rate.
The dealing desk responds to market
orders in less than 10 seconds during normal market
conditions. During heavier market conditions, market
orders are processed in less than thirty seconds.
Entry
Orders
An entry order is an order that is
executed when a predetermined price level is reached
and/or broken. The executions of these orders are
under the supervision of the dealing desk and remain
in effect until the client cancels the existing order.
Limit
and Stop Orders
Orders can be placed to close a position
on a stop or limit, as well as to initiate a position
on a stop or limit. To initiate a position with a
stop or a limit, right click on the currency bid or
ask in the "Dealer's Rates" window and select
"Stop" or "Limit". You can then
input your price.
Close
Position
To close an open position at the market,
or with a stop or limit, right click on the position
in the "Open Positions" window and select
"Stop", "Limit", or "Close
Position."
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Phone
Trading
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Call
the trading desk at + 1 617 357
0688 to speak with a dealer. State your name,
account number, user ID and password. Ask for a price
in the desired currency pair, indicating the amount
you wish to trade.
Example: "May I have price for
Euro, sell, 10 lots?"
After the dealer gives you a quote,
you should immediately indicate whether you accept
it because the quote will expire if and when the dealer
says "CHANGE" or "OFF":
You must indicate to the dealer whether
you are opening a new position or closing an existing
one. If it is to close a position, the dealer might
ask you to indicate the opening price of the position
that you wish to close.
Example: "May I have a price
for Buy 10 Euro, opening position."
Example: "Sell 5 Dollar Swiss,
closing position of a long position at an open price
of 1.6982."
If you do not wish to trade at a particular
quote that you have just received from our dealer,
simply say "nothing there" or "re-price",
at which point you may decide to deal or pass entirely
on the dealer quote or re-quote.
After you execute your trade, the
dealer will confirm your trade details to you.
If it is correct, confirm with the
dealer and hang up. You have now finished your phone
trade. In the next few minutes, the dealer will input
your phone trade on your on-line trading platform.
You must then check that you phone trade was inputted
correctly into your account on the on-line trading
platform.
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An
Example of a Phone Trade:
Customer:
Hi this is customer ABC,
account number 123, user ID XYZ and password
QRS.
Dealer:
Hi ABC, how
may I help you? (After confirming the identity
of the customer)
Customer:
Can I have a price for
3 Euro?
Dealer:
Price for 3
Euro is currently .8710/15
Customer:
I Buy 3 Euro,
opening position.
Dealer:
To confirm,
you bought 3 Euro at .8715, opening position
for account number 123.
Customer:
All agreed.
Dealer:
Thank you.
End
Call
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Price
Quotes
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Through
the NZ-ICE platform, customers can execute trades directly
from real time streaming buy/sell quotes. Live prices
are continuously updated through Java-enabled dealing
software and traders can click on the current bid or
ask prices at any time to instantaneously execute trades. |
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Reporting
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The
dealing software tracks all trading activity in real
time, allowing clients to view current open positions,
real-time profit and loss, margin availability, account
balances, and all historical transaction details directly
on-screen. |
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Rollover
Interest
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At
5:00 PM Eastern Standard Time, all open positions are
automatically rolled-over and interest is applied. Interest
charges are determined by the difference between US
interest rates and the interest rates in the corresponding
country.
NZ-ICE overnight
rollover charges:
All accounts with open trades are
charged the rollover interest as indicated in the
Currency Reference Rates on the trading platform.
All of the inter-bank foreign exchange trades settle
between banks in two business days. The roll-over
interest is paid on a daily basis depending on the
day of the week.
Monday -
1 day of interest: Trades executed on Monday
would settle on Wednesday. In other words, all of
the inter-bank trades have 2-days value date. The
roll-over takes place when a position that has been
opened on Monday was held overnight and rolled to
Tuesday. In this case the next value day for this
trade will be that of Thursday.
Tuesday -
1 day of interest: If a position was opened
on Tuesday and rolled-over to Wednesday then the value
date would be that of Friday.
Wednesday
- 3 days of interest: All of the positions
that were opened and held overnight on Wednesday and
were rolled overnight to Thursday would have the value
date of the following Monday. On Wednesday, interest
is charged for Monday, meaning an extra two days of
interest for the weekend when banks are not open and
actual delivery of currency cannot be made.
Thursday
- 1 day of interest: All of the positions
that are rolled to Friday will have only one-day interest.
The weekend interest was charged on Wednesday.
Friday -
1 day of interest: A position that is rolled
to Monday will have a value day of the following Wednesday.
In the event a country of one of the
currency pairs has a holiday, then the value day will
be adjusted accordingly. Every foreign exchange deal
has a value day and if the position is not closed
on the same day, then it becomes subject to rollover.
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Trading
Hours
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The
dealing desk is open 24 hours daily from 17:00 EST
Sundays through 16:30 EST Fridays. |
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Trading
Minimums
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A
minimum transaction size is 1 lot, or 10,000 of the
base currency. An account with a leverage of 100:1 opening
a US$10,000 position would require an initial margin
deposit of US$100. |
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Trading
over the Internet
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Executing
a trade over the Internet is a simple two-step process.
Simply enter the number of lots and then click on the
bid (buy) or offer (sell) for the currency pair you
wish to trade and your trade is automatically executed.
Our dealing software automatically calculates the initial
margin requirement based upon the amount of the trade.
If sufficient funds are available in your account the
software will accept the transaction. Trades are confirmed
online, normally within one second. At the same time,
the system instantaneously updates both your open position
and calculates your current P&L.
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Trading
Spreads
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NZ-ICE
offers 3 points spreads in the major currencies (USD/JPY,
EUR/USD, USD/CHF, GBP/USD) Prices quoted are inclusive
of our normal dealing spreads. However, during periods
of market volatility or when major economic news is
released spreads may widen. The spreads are the same
for Retail customers and Institutional customers on
all currencies. |
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Transaction
sizes
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All trades are sized in units of 10,000
of the base currency, (ie. GBP/USD is £10,000). All
of the trades are numbered in terms of 'lots'. The
maximum trade size available online is 500 lots or
5 million of the base currency. Trades in excess of
500 lots must be executed over the phone with one
of the Forex-ICE dealers.
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