This document was published and took effect on October 04, 2013.

1. Trading Operations

1.1. The aim of these Regulations is to specify the procedure for the processing and execution of client orders. 

1.2. These regulations are published in open sources and are an essential component of the client agreement. 

1.3. GKFX has the right to amend the provisions of these Regulations. Such changes shall take effect the day notification is provided, in writing or electronically, in the form of notification on the Website, or by other means at GKFX’s discretion. 

1.4. GKFX (the Company) is the Client’s main counteragent when carrying out trading operations. 

1.5. Quotes transmitted on the Client’s trading terminal are received from liquidity providers as indicative and represent the current cross section of the market. The Client must not view these quotes as provided on a guaranteed basis by GKFX for the execution of trades. 

1.6. When a price gap occurs in the quote history caused by a hardware or software failure, the Company has the right to synchronize the quote base with any available source and is not responsible for the quality of quotes. The Company shall make every possible effort to maintain the quote base in suitable condition. 

1.7. The Client is fully responsible for understanding all aspects of trading, as well as the laws and rules which govern it. 

1.8. GKFX covers all client positions with liquidity providers and has the right to correct or annul any trading operation in accordance with this covering. 

1.9. GKFX offers services over the Internet. The Client acknowledges that there are technical risks involved and bears responsibility for all risks connected with problems relating to connection, as well as with hardware or software, and is obligated to immediately inform GKFX of any problems so as to receive assistance in fixing them. 

1.10. The Client carries out trading operations at the prices offered by GKFX, which is the Client’s counteragent. Buy orders are executed at the Ask price and sale orders at the Bid price. The result of the order will depend on the type of order and market situation.   

1.11. Charts on the MetaTrader platform display the Bid price.

2. Rollover of Open Positions

2.1. Open positions automatically rollover from one business day to the next with corresponding swap rates which reflect the cost of the rollover. Swap rates may be either positive or negative depending on market conditions, the instrument in question, as well as the volume of the open position. 

2.2. As a rule, the rollover of open positions to the next day occurs between 23:55 and 00:10 according to MT time. Current swap rates can be viewed in symbol settings in the trading terminal. The swap rate is tripled for positions carried over from Wednesday to Thursday. 

2.3. GKFX reserves the right to change the swap rate without giving the Client prior notification.

3. Instruments

3.1. GKFX provides the opportunity to trade various instruments, the list of which is continuously being expanded. Any changes or additions to the trading terms are displayed in the Contract Specification on GKFX’s Website in real time. It is important that the Client monitor the Contract Specification in order to keep track of all changes to the trading terms.  

3.2. Settlements for trading operations between GKFX and the Client take place on the basis of cash payments without actual delivery of the product. 

3.3. Prices offered to the Client for executing trades may differ from those prices transmitted on the trading platform. GKFX is not responsible for losses the Client may suffer due to the inability to execute trades at the requested prices. 

3.4. The Company may implement a suspension in the trading session of an instrument or group of instruments during a bank rollover with the aim of lowering the risk of loss for clients due to a lack of liquidity in the market, and as a consequence, substantially widened spreads. The trading sessions for each instruments and times of suspended trading are indicated on the company’s site in the contract specification section. The Client acknowledges that a lack of liquidity and a widened spread may fall outside the bounds of the implemented suspension. The Company recommends taking these factors into account when formulating a trading strategy.

4. Spreads

4.1 GKFX offers clients market spreads which may be widened on account of a lack of liquidity or high volatility.

5. Opening and Closing Positions (Market execution)

5.1. Opening and closing positions is accomplished by means of sending a Market Order of the desired volume. A Market Order is an order to buy or sell the desired volume at the current market price. A buy order is executed at the Ask price and a sell order at the Bid price. 

5.2. The result of the activation of a market order to open a position may be the opening of a new position of the specified volume. The execution price may differ, either positively or negatively, from what the client saw in the trading terminal at the moment the order was sent. The result of the execution of the order will depend on the market situation and current liquidity. 

5.3. The result of the activation of a market order to close a position may be the closing of an existing position of the specified volume. The execution price may differ, either positively or negatively, from what the client saw in the trading terminal at the moment the order was sent. The result of the execution of the order will depend on the market situation and current liquidity. 

5.4. In the event of a lack of the necessary liquidity, the order may be rejected or the time taken for its execution may be increased.  

5.5. The Client has the right to close a position fully or partially by specifying the volume accordingly. 

5.6. Despite there being in the terminal the possibility of cancelling a sent order, GKFX does not guarantee that an order will be canceled. 

6. Opening and Closing Positions (Instant execution)

6.1. Positions are opened and closed by submitting an Instant Order with the desired volume. An Instant Order is an order to buy or sell the specified volume at the price offered to the broker. Buy orders are executed at the Ask price and sell orders at the Bid price. 

6.2. The result of the submission of an Instant Order to open a position may be the opening of a new position with the specified volume at the price indicated in the order. If during the processing of the order the price changes, GKFX may offer a new price (requote). In this case, the Client will have a certain amount of time to decide whether to agree to the requote. Agreeing to the requote does not guarantee that the order will be filled, but simply sends a new order to the server at which point the price may change again. In order to reduce the likelihood of receiving requotes, the Client may indicate a maximum allowable deviation from the displayed price.    

6.3. The result of the submission of an Instant Order to close a position may be the closing of an open position at the price indicated in the order. If during the processing of the order the price changes, GKFX may offer a new price (requote). In this case, the Client will have a certain amount of time to decide whether to agree to the requote. Agreeing to the requote does not guarantee that the order will be filled, but simply sends a new order to the server at which point the price may change again. In order to reduce the likelihood of receiving requotes, the Client may indicate a maximum allowable deviation from the displayed price.   

6.4. If the Client uses a slippage parameter when opening an Instant Order, then in case when price changes, the Client will get an Offquote and would have to submit a new Instant Order. If the Client doesn't use a slippage parameter and the price changes, then the Client will get a Requote.  

6.5. The Client may close a position fully or partially by indicating the desired volume. 

6.6. Despite the option displayed in the terminal of cancelling a previously submitted order, GKFX does not guarantee that the order will be cancelled. 

7. Pending Orders

7.1. A pending order is a client request to open or close a position when the price reaches a specified level. The Ask price activates the order for a buy, and the Bid price for a sell. 

7.2. There are six types of pending orders: Buy Limit (limit order for a buy), Sell Limit (limit order for a sell), Buy Stop (stop order for a buy), Sell Stop (stop order for a sell), Stop Loss, and Take Profit. 

7.3. A Buy Limit (limit order for a buy) is an order to buy at a price lower than the current market price. The result of the activation of a Buy Limit order may be the opening of a new buy position at the specified price or better (positive slippage). If there is not enough liquidity, the limit order may be only partially executed or may not be executed at all (in this case the order remains in the market). If the order is partially executed, a limit order for the remaining volume with the same parameters will be put forth to the market. 

7.4. Sell Limit (limit order for a sell) is an order to sell at a price higher than the current market price. The result of the activation of a Sell Limit order may be the opening of a new sell position at the specified price or better (positive slippage). If there is not enough liquidity, the limit order may be only partially executed or may not be executed at all (in this case the order remains in the market). If the order is partially executed, a limit order for the remaining volume with the same parameters will be put forth to the market.

7.5. If the Client chooses “Market execution of limit orders” in the settings, then Buy Limit, Sell Limit and Take Profit orders will be executed in accordance with the rules for executing Market Orders. This means that the execution price may differ from the price specified in the order. The difference can be both positive and negative. How the order is executed will depend on the market situation and current liquidity. 

7.6. Buy Stop (stop order for a buy) is an order to buy at a price higher than the current market price. When the price reaches the Buy Stop level, a market order is put forth to buy the specified volume. The result of the activation of a Buy Stop order may be the opening of a new buy position. The execution price may differ either positively or negatively from the price indicated in the order. The result of execution will depend on the market situation and current liquidity. 

7.7. A Sell Stop (stop order for a sell) is an order to sell at a price lower than the current market price. When the price reaches the Sell Stop level, a market order is put forth to sell the specified volume. The result of the activation of a Sell Stop order may be the opening of a new sell position. The execution price may differ either positively or negatively from the price indicated in the order. The result of execution will depend on the market situation and current liquidity.

7.8. If the Client chooses “Cancel stop orders if gap is more than N pips” then the order will be cancelled when a gap of the specified number of pips occurs.  If the condition for this order being activated is met and the order is sent to a counter party, then GKFX can’t control the actual execution of the order and slippage may be more than N pips. How the order is executed will depend on the market situation and current liquidity. 

7.9. GKFX reserves the right to refuse to put forth a client’s pending order if, when the order is placed, there is not enough free margin on the client’s account to buy or sell the specified volume. This is due to the fact that the client’s pending orders represent liquidity for other clients and should be ensured by free funds. 

7.10. A Stop Loss order is used for the aim of closing an open position. This order closes a buy position at a price lower than the market price, or closes a sell position at a price higher than the market price. The rules of execution for Stop Loss orders are analogous to those for Buy Stop and Sell Stop orders. 

7.11. A Take Profit order is used for the aim of closing an open position. This order closes a buy position at a price higher than the market price, or closes a sell position at a price lower than the market price. The rules of execution for Take Profit orders are analogous to those for Buy Limit and Sell Limit orders. 

7.12. If there is not enough liquidity, the time it takes for the order to be executed may increase. 

7.13. Stop Loss and Take Profit orders have the status GTC (Good Till Cancelled), whereas Buy Limit, Sell Limit, Buy Stop, and Sell Stop orders can have GTC status or GT (Good Till) status, which means that the Client can set how long the order is valid for. 

7.14. If there are not enough funds on the CA to meet the margin requirements at the moment an order is activated, GKFX has the right to reject the order. It is important to take into account that the calculation of free margin takes places at current market prices, not at the moment of activation, but at the moment of execution and therefore may differ in either direction from the prices the Client had assumed and the Client must take into account that fact when planning trading. 

7.15. GKFX makes every possible effort to execute orders exactly at the displayed price or at a more favorable price for the Client. If it is not possible to execute the order at the displayed price, GKFX will execute the order at the best possible price at the moment of execution. 

7.16. Any order, regardless of type, may only be executed during the trading session of the corresponding instrument. 

7.17. An order may be placed at any level relative to the current price. GKFX does not in any way limit the placement of pending orders. The Client may set limit orders within the spread. 

7.18. Pending orders of any kind may be modified or deleted by the Client at any time during the instrument’s trading session. The Company may, but is not obligated to, reject the client’s request to modify or delete an order if the order has already been queued up to be executed. Deleted pending orders older than 1 month will be deleted from the history of the client's trading account and placed to the archive of the MT server.

7.19. In order to automate the placement of Stop Loss orders with the aim of maximizing profit, MetaTrader offers the possibility of placing Trailing Stop orders. A Trailing Stop works only when the Client’s terminal has been launched. The result of the activation of a trailing stop is the submission of a request to modify the Stop Loss level, which essentially is no different from orders sent by the client. The Client should take into account the fact that the Trailing Stop function does not guarantee the placement of the stop exactly according to the tick history.

8. Margin

8.1 The Client is obligated to support the margin level at no lower than 100%, taking into account floating leverage levels listed on the website on Margin requirements page.

8.2. The Company has the right to reject any order to open a position if there is not enough free margin on the Trading Account. 

8.3. The Company has the right, but is not obligated, to close any position if the margin level on the Trading Account has gone below 60%. As a rule, though not always, the most loss-making position is closed first. 

8.4. The Company has the right to reduce the leverage offered to any client with prior notice. The Company also has the right to suspend the client’s trading if the Company is unable to contact the client using all available methods.

9. Manifest Error

9.1. A manifest error is the carrying out of the Client’s trading operations at an erroneous price. The reasons for such errors can be the following: human factor, technical malfunction, other reasons. 

9.2. GKFX has the right to cancel or adjust any of the Client’s trading operations if there are grounds to believe that a manifest error was committed while carrying out these operations.

10. Force Majeure

10.1. Force majeure circumstances are considered to be such unforeseen events as natural disasters, war, sabotage, global technical malfunctions, as well as a complete lack of liquidity in the market. 

10.2. In the event of the occurrence of one or more of the above-listed events and its designation by GKFX as a force majeure circumstance, GKFX ceases being bound to the obligations of this agreement and will not be liable for any consequences of such an event. 

10.3. GKFX is required to provide the best possible prices and ensure the best possible execution during force majeure circumstances.

11. Negative Balance

11.1. If a negative balance arises on the Trading Account, the debt must be liquidated by the Client within 10 days using any of the available deposit methods. The failure to fulfill this requirement may lead to legal action. GKFX establishes the trading terms (size of leverage, stop out level) in such a fashion as to reduce the possibility to a minimum of the balance of the Trading Account becoming negative. The Client, in turn, is obligated to maintain the margin level on the account at a level no lower than 100%.

11.2. If the Client chooses leverage of 1:10 or less, the Company guarantees that a stop out of the client’s positions will not lead to a negative balance. The client must not have any open positions when changing the leverage. 

12. Procedure for Filing a Claim

12.1. Despite all efforts made by GKFX to service its clients at the highest possible level, the Client is not always satisfied with the results of GKFX’s service. Any question which the Client may have must be submitted within two days of the moment the question arises. GKFX reserves the right to refuse to review a Client’s question if it is not submitted within the specified period. 

12.2. A claim made in writing must be sent by the Client to the division which processes Client complaints and disputes at dealing@gkfxecn.com. The claim must contain the number of the Trading Account, number of the disputed order, and the nature of the claim. The claim must not contain abusive or offensive language or an emotionally charged description of the situation, otherwise it may be rejected. 

12.3. GKFX shall review the Client’s claim and make a final decision within five calendar days of having received it. In certain exceptional cases, the time period for review of the claim may be increased.  

12.4. The log-file of the Company’s server shall be the main source of information for the review of the claim.

13. Scalping

13.1. GKFX does not place any restrictions on the type of trading strategies which may be used and Clients are welcome to use any method, including scalping.

14. Advisors and Indicators

14.1. The Client takes full responsibility and assumes all risks connected with the use of any application or software from external developers which is directly or indirectly installed on the Client’s trading platform. Such software may include various kinds of indicators which are designed to determine favorable trading periods. 

14.2. GKFX is not responsible for the trading operations and signals generated by trading advisors or indicators nor is it responsible for the profits or losses achieved as a result of their use. The Client bears full responsibility for control over all trades made on the Trading Account, as well as for all profit and loss resulting from such trades. 

14.3. If an unproductive burden on the server arises, GKFX reserves the right to prohibit the use of advisors or fully close trading on the Trading Account.

15. Market Depth with one-click trading

15.1. Market Depth with one-click trading is intended to display the current liquidity for a given instrument and optimize the trading process. 

15.2. The one-click trading function is realized by means of a trading advisor and contains all the features of automated trading that are included in the MetaTrader 4 terminal. 

15.3. Clicking on the Buy button sends a Market Order to buy the volume indicated in the corresponding Market Depth window. 

15.3. Clicking on the Sell button sends a Market Order to sell the volume indicated in the corresponding Market Depth window. 

15.5. A description of the windows and functions of the Market Depth feature is published on the website. The Client is required to familiarize him/herself with the instructions before using the Market Depth with one-click trading function.