The client is particularly made aware of the fact, that in certain markets, including the foreign exchange markets, OTC foreign exchange options and CFD Contracts, the Eagle will act only as an ECN broker.
IntelTrade Citi will not act as the Execution Venue.
When acting as an ECN broker, IntelTrade Citi will not establish bid and ask prices.
In order for IntelTrade Citi, to quote prices with the quickness normally associated with speculative trading, IntelTrade Citi may have to rely on available information that may later prove to be erroneous, due to specific market circumstances (e.g. lack of liquidity , suspension of an asset or errors in feeds from information providers or quotes from Counterparties) If this occurs and if IntelTrade Citi has acted in good faith when providing the price to the client, IntelTrade Citi may revoke the trade with the client but must do so within reasonable time frame and shall provide the client with a full explanation of such cancellation.
Following execution of any position with a client, the Execution Venue may afterwards compensate each such client position with another client position, or a position with one of the Execution Venue’s Counterparties or maintain a proprietary position in the market, to obtain profits from such positions. Such decisions and actions may result in the Execution Venue offsetting client positions at prices, sometimes significantly different, from prices stated to clients, resulting in trading profits or losses for the Execution Venue.
This can consequently create what may be seen as an implied cost (i.e. the difference between the price at which the client traded with the Execution Venue and the price at which the Execution Venue subsequently traded with Counterparties and/or other clients). The Market Making function may pose significant costs to the Execution Venue if the market moves against it as compared to the price at which it traded with the client.
The client acknowledges that the Execution Venue in CFD contracts where it acts as Market Maker, may hold positions that are contrary to positions of the client, resulting in potential conflicts of interest between the Execution Venue and the client.
In markets, where the Execution Venue acts as a Market Maker, the client accepts that IntelTrade Citi has no obligation to state prices to clients at all times in any given market, nor to quote such prices to clients included the specific maximum spread.
The client understands, recognizes and accepts that the price quoted to the client includes a spread, when compared with the price to which the Execution Venue may have covered or expected to be able to cover the Contract in a trade with another client or a counter party.
Moreover, the client acknowledges and accepts that this spread represents IntelTrade Citi remuneration and that such spread cannot automatically be calculated for all Contracts and that such spread will not be described at the Trade Confirmation or otherwise disclosed to the client.
Any commissions, interest charges, costs associated to and included in the spreads quoted by the Execution Venue as a Market Maker in certain markets and other fees will therefore have influence on the client’s trading result and will have a negative effect on the client’s trading performance, compared to a situation in such the commissions, interest charges and costs associated to and included in the spreads, did not apply.
In the case that the client account equity is equal or exceeds 300,000 USD (or currency equivalent) and there are open trades of Metals (Gold and/or Silver) of 50 lots or more, IntelTrade Citi has the right to adjust the leverage of the underlying trading account to 1:75. If this occurs, IntelTrade Citi will notify the client by email.
If the client is an active trader and is executing numerous transactions, the total effect of visible as well as not visible costs may be important. The client may have to achieve significant profits in the markets to be able cover the costs associated with trading activities with the Execution Venue. For very active clients, these costs may even surpass the value of the margin deposited. Normally, when trading margined derivatives, the lower the percentage of the applicable margin rate, the higher the proportion of the costs associated with executing a transaction. Margined derivatives are derivatives such as CFD’s that can be traded using a leverage of higher than 1:1.
The client is particularly informed, that in trading of OTC foreign exchange options, CFD Contracts and other OTC products, implied charges may arise as an after-effect of the profits made by the Execution Venue performing in its capacity as a Market Maker.
The Execution Venue is at no time obliged to reveal any details of its performance or income produced as a Market Maker or otherwise, related to other commissions, charges and fees.
The client is made aware that CFD Contracts may be OTC products quoted by the Execution Venue whilst operating as a Market Maker and not traded on a recognized stock exchange. As a result, non-visible costs related to the Execution Venue performance as a Market Maker may also apply to any CFD Contract.
Due to low liquidity and/or or high volatility and widened spreads, placing of pending orders around some Economic Announcements may be limited. Note: All Pending Orders on Shares CFDs and Commodities CFDs will be automatically closed during market breaks. If some orders on the aforementioned assets will be left pending, they will be automatically deleted after the daily market closure time.