Online Trading

Commissions & Conditions



HMS shall endeavour to offer the Client Forex Target bid / ask spreads. The Forex Target bid / ask spreads are HMS’ best possible bid / ask spreads quoted under normal market conditions. During periods of high volatility or low liquidity, the Forex Target bid / ask spread may be increased and auto execution disabled

TARGET BID/ASK SPREADS


Our target bid/ask spreads listed are our best possible spreads used in normal market conditions. In periods of volatile markets, the spread may be increased and auto-execution disabled. The spreads applicable to your account will be displayed in your HMS Trader 2 platform under the trading conditions tab.

MARGIN REQUIREMENTS


Foreign exchange trading is normally undertaken on the basis of "margin trading" That is a relatively small deposit (the margin) is held as collateral in order to control much larger positions in the market; in consequence of which the client acknowledges, understands and accepts the high degree of risk exposure.
Margin requirement: Any margin collateral requirement is calculated as follows:
Example
This example is not based on actual margin rates, please refer to Forex Trading Commissions for an up to date list of the current margins and available currency pairs
In order to trade EUR 100,000 against another major currency, the client needs to hold collateral with the depositary bank, in a minimum amount of EUR 2,000, being 2% of EUR 100,000; by way of security. If this collateral, in the client account, falls below the account margin requirement (2%), in this case EUR 2,000, due to adverse market movements, then the client would be under the minimum margin required and is therefore required to liquidate (close out) some or all of that position . The client shall remain liable for any resulting deficit balance.
HMS LUX reserves the right to adjust the margin requirement at any time.
The client acknowledges, understands and accepts that it is the sole responsibility of the client to monitor,verify and maintain correct margin requirements at all times and that HMS LUX is under no obligation to inform the client of any adverse market movements or losses in the clients account.
However if a client's account margin requirement drops below the margin requirement , HMS LUX , at its absolute discretion and without prior warning, reserves the right but not the obligation to close out (liquidate) all positions, on a best effort basis.
The client understands that he/she shall hold HMS LUX its employees, officers and directors harmless from any or all losses at all times for any actions taken to liquidate or close out such positions and the client aknowledges, understands and accepts that he/she will remain fully responsible for any claims, liabilities, expenses, any and all losses incurred, due to such actions taken by HMS LUX.
Important Information
HMS Trader is a multi product trading platform which supports cross product margining for any margin based investments made in the different products supported.
The client is therefore required to monitor first and foremost the aggregated margin requirements from all investments as a percentage of the client's Net Free Equity. At 100% "Margin Utilization" the client will be deemed to have utilised all available margin collateral. see below
The client's total "Margin Utilization" , irrespective of products traded, must not exceed 100%. If the funds in the client’s account fall below the minimum margin requirements and the "Margin Utilization" exceeds 100%, the client will be required to decrease position(s) in order to reduce exposure.
It is the client’s total responsibility to monitor position(s) and margins at all times. If the "Margin Utilization" exceeds 100%, HMS LUX reserves the right but not the obligation to close out all open positions.
Account Exposure
The Client must not invest in more than 70 percent of the Client’s account value in any one Margin Trade instrument and/or related Margin Trade instrument. If the Client holds more than 70 percent of the account value in any one Margin Trade instrument and/or related Margin Trade instrument, the Client will be required to reduce the exposure. It is the Client’s total responsibility to monitor the clients account(s) and exposure at all times. If the Client does not comply with this requirement, the Clients Account will be considered to be over-exposed and HMS, at its absolute discretion and without prior notice to the Client, reserves the right, but not the obligation, to reduce the Client’s exposure by closing position(s). The Client is made aware that HMS, at its absolute discretion, may consider certain accounts higher risk and may lower the above threshold. In such cases, HMS shall inform the Client.

MARGIN CALLS


You must maintain the margins listed in your account at all times. If the funds in your account fall below this margin, you will be subject to a margin call to either deposit more funds to cover your positions or close positions – normally you will be notified through our trading platform. If your margin situation is not remedied, we may close positions on your behalf.

FOREX TRADING HOURS


From Monday 05:00 Sydney local time to Friday 17:00 New York local time.

POSITIONS HELD UNTIL THEIR VALUE DATE


Open Spot Forex positions held at the end of the business day, (17:00 New York time) before their value date, will be rolled over to a new value date on a Tom/Next basis.
As part of the Tom/ Next roll over operation, positions are subject to a swap charge or credit (swap points), which are related to the two traded currencies.
The swap points are based on a Tom/Next swap feed from a tier one bank with an added mark up of +/- 0.25% based on the overnight interest rates (Reuters Contribution feed), plus an interest component of +/- 0.75% for any unrealised P/L on the position based on the same interest rates