Regulations for trading operations on the exchange, a document on which much depends

You already know that the non-trading regulations govern the financial relations between the client and the broker, as well as the rules for using the trader's personal account.

It is logical that there is a document regulating the implementation of exchange transactions, including other important issues directly related to trading.

Such a document is the "Trading Operations Regulations," which can be found on the website of any brokerage company or in the trader's personal account.

Since the document outlines the basic rules for opening and maintaining orders, familiarization with it is a mandatory step before opening trades on a real account.

What does the trading regulations include?

Introductory provisions and terminology – a traditional section that explains the concepts of the terms used and explains the purpose of the document.

General Provisions – a brief description of the trading process, the mechanism for receiving quotes and submitting trade requests, the circumstances in which the company may reject a client's order to open a trade, and the characteristics of Bid and Ask prices.

Open and closed positions – what information should be provided when opening a new position, how it is executed, and at what price. Closing previously open positions, reasons for rejecting a closing request, and rules for closing locked positions.

Orders – a description of all market and pending orders available for opening on the broker's trading platform. This includes information about the type of open order, stop loss and take profit , and other important aspects of working with orders.

Forced position closure – this is arguably the most important clause in the trading regulations, as it's the source of problems. It outlines the cases in which the broker can forcefully close your position.

Corporate Actions in CFD Trading of Stocks and Indices – a notice that the brokerage firm has the right to take measures to reflect such actions as dividend accrual, splits, issuance of new shares and other corporate actions.

Dormant Account - How long does it take for your account to become inactive, the fee for maintaining an inactive account, and the timeframe for completely liquidating such accounts.

Typically, trading regulations consist of only a few pages, so they're easy to read. Each broker has its own requirements, which are included in this document.