Regulations

Directional Trading on the cTrader Platform

General Provisions

This Regulation sets out the terms and conditions under which the Company provides the trader with funds for directional trading in instruments on the cTrader platform.

Drawdowns

The maximum daily drawdown is 5% of the reference value, which is fixed daily at 23:59:59 (GMT+3) and is equal to the higher of the two values — Balance or Equity — at that time. The resulting amount (the daily drawdown limit) applies to the following trading day.

Throughout the trading day, the daily trading result is calculated as the sum of the PnL from closed trades and the floating PnL from open positions. If the daily loss reaches the daily drawdown limit, all open positions are closed and trading is suspended until the start of the next trading day.

Example. At 23:59:59, the Balance is $10,000 and Equity is $10,200. The higher value, USD 10,200, is used to calculate the limit for the following day:

5% × $10,200 = $510.

Closed trades for the day resulted in a loss of $300, while the floating loss on open positions amounts to $210.

Daily result: −$300 + (−$210) = −$510.

Since the daily loss has reached the $510 limit, all open positions are closed and trading is suspended until the next trading day.

If closed trades for the day resulted in a profit of $200, while the floating loss on open positions amounts to $600:

Daily result: +$200 + (−$600) = −$400.

Since the daily loss has not reached the $510 limit, trading may continue.

The maximum overall drawdown for the entire trading period may not exceed 15% of the initial trading capital. If this limit is breached, all open positions are closed and trading is suspended.

Example. If the initial trading capital is $10,000, all open positions are closed and trading is suspended if Equity falls below $8,500.

Leverage

The trader is independently responsible for risk management. On Fridays, by 22:00 (GMT+3), the actual leverage on the trading account, calculated on an aggregate basis across all instruments, must not exceed 1:30 if positions are to be held over the weekend.
Actual Leverage = the ratio of the aggregate notional value of all open positions (in USD) to the account Equity.

For example, with an Equity of $10 000, the total notional value of positions held over the weekend must not exceed $300 000.

Examples of Notional Value Calculations

Example 1. One position in XAUUSD is open: 1 lot, lot size of 100 ounces, price of $4 119,00.

Notional value = 1 × 100 × 4 119,00 = $411 900.

To hold this position over the weekend, Equity must be at least 411 900 / 30 = $13 730.

Example 2. One position in EURUSD is open: 0,5 lots, lot size of 100 000 units of the base currency, price of 1,1500.

Notional value = 0,5 × 100 000 = 50 000 EUR; in USD, this equals 50 000 × 1,1500 = $57 500.

To hold this position over the weekend, Equity must be at least 57 500 / 30 ≈ $1 916,67.

Fees

The Company's additional commission for a complete trade cycle (opening and closing a position) on instruments for which the broker charges commissions is $5 per lot.

For all other instruments, for which the broker charges commissions as a percentage of trade volume, the Company's additional commission is 0,3% of the trade volume (0,15% per side).

For carrying a position overnight, the Company charges an additional fee equal to 50% of the broker's swap, calculated separately for each position for each overnight period: in the case of a negative swap, the Company additionally deducts 50% of the broker's swap amount; in the case of a positive swap, the Company retains 50% of the amount credited by the broker.

Example: Swap = −$10 → additional deduction of $5 (15 in total); Swap = 10 → the Company retains $5, leaving $5 for the trader.

Fee Examples:

  • AUDJPY, 0,1 lots = 5 × 0,1 = $0,5 — Prop Firm commission.
  • GOOGL, 0,04 lots, with a lot size of 100 shares (4 shares) and a price of $287,50 → trade volume = $1 150; Company's commission = 1 150 × 0,3% = $3,45 (0,15% upon opening and 0,15% upon closing, amounting to $1,725 per side).

Profit Sharing

The trader's profit, after deduction of all fees and commissions, is distributed as follows: 50% to the Company and 50% to the trader.

Profit Withdrawals

Full profit withdrawal becomes available after the first month of trading and is processed as a separate payment.

Relations to Other Types of Trading

At the current (testing) stage, directional trading on the cTrader platform is a separate type of trading and is not associated with trading under the “Global Arbitrageur” or “MOEX Arbitrageur” statuses, or with trading under the standard terms and conditions.

Since directional trading is not risk-free, the Company reserves the right to introduce a separate trader screening process to determine eligibility for this type of trading.