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

You already know that the regulations for non-trading transactions regulate the financial relationship between the client and the broker, as well as the rules for using the trader’s personal account.

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

Such a document is the “Regulations of Trading Operations”; it can be found on the website of any brokerage company or in the trader’s personal account.

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

What does the trading regulations include?

Introductory provisions and terminology is a traditional section that deciphers the concept of the terms used and talks about what the presented document is intended for.

General provisions - a brief description of the trading process, the mechanism for obtaining quotes and submitting applications for opening transactions. In what cases can a company reject a client’s order to open a transaction, as well as characteristics of Bid and Ask prices.

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

Orders – a description of all market and pending orders available for opening in the broker’s trading platform. What data should be entered depending on the type of open order, parameters of stop orders stop loss and take profit . As well as other important aspects of working with orders.

Forced closure of positions - we can say that this is the most important point in the regulations of trading operations, because it is precisely this that is the source of trouble. It states here in which cases the broker can forcefully close your position.

Corporate actions for CFD trading of shares and indices - a notice that the brokerage company has the right to take measures to reflect such actions as the accrual of dividends, splits, issuance of new shares and other corporate actions.

Inactive account – after what time your account becomes inactive, the fee for maintaining an inactive account, and the deadline for the complete liquidation of such accounts.

As a rule, the regulations for trading operations consist of only a few pages, so reading them will not be difficult. Each broker has its own requirements, which are included in this document.