10. Interpretation of Terms

10.1. In these Terms of Business:

"Abnormal Сircumstances"

a discrepancy between the condition of the company and the condition of the counterparties, the current market condition, or the capabilities of the company’s software or hardware; or other unforeseen event.

"Abnormal Market Conditions"

shall mean Thin market or Fast market.

"Average market volume"

determined at the Dealer’s discretion, based on current market conditions; specified in the contract specification for every instrument.

"Account History"

shall mean all completed transactions and depositing/withdrawal operations on the Trading Account.

"Advisor"

shall mean an algorithm in the form of a program based on MetaQuotes Language 4, which is used to control a Trading Account and give Instructions and Requests to the Server via the Client Terminal.

"Alpari's website"

shall mean Alpari's website at http://www.alpari.ru/en/.

"Ask"

shall mean the higher price in the Quote. The price the Customer may buy at.

"Balance"

shall mean the total financial result of all completed transactions and depositing/withdrawal operations on the Trading Account.

"Bar/Candle"

shall mean a Chart element, which shows opening and closing prices, as well as lowest and highest prices for the definite period of time (for example, minute, 5 minutes, a day, a week).

"Base Currency"

shall mean the first currency in the currency pair against which the Customer buys or sells the Quote currency.

"Bid"

shall mean the lower price in the Quote. The price the Customer may sell at.

"Buy Limit"

shall have the meaning given in clause 5.1.

"Buy Stop"

shall have the meaning given in clause 5.1.

"CFD"

shall mean a Contract for Difference.

"Chart"

shall mean the Quotes Flow in the form of a chart. For the period relevant for a Bar/Candle:

1. Bar/Candle high is the highest Bid,
2. Bar/Candle low is the lowest Bid,
3. Bar/Candle close price is the last Bid,
4. Bar/Candle open price is the first Bid.

"Client Terminal"

shall mean the MetaTrader program of version 4.xx, which is used by the Customer in order to obtain information about financial markets (which content is defined by the Dealer) in real-time, to make technical analysis of the markets, make transactions, place/modify/delete Orders, as well as to receive notices from the Dealer. The program can be downloaded at the Alpari's web page (http://www.alpari.ru/en/metatrader/) free of charge.

"Client Terminal Log-File"

shall mean the file, which is created by the Client Terminal in order to record all the Customer''s Requests and Instructions to the Dealer with accuracy to a second.

"Closed position"

is a result of the second part of a fully accomplished Transaction.

"Contract Specification"

shall mean principal trading terms (spread, lot size, initial margin size, margin for the matched positions etc.) for each Instrument. At the time of the release of this document the information is displayed at http://www.alpari.ru/en/cspec/.

"Contract for Difference"

shall mean a contract, which is a contract for difference by reference to fluctuation in the price of the underlying asset (shares, futures, metals, indices etc.).

"Currency pair"

shall mean the object of transaction based on the change in the value of one currency against the other.

"Customer"

shall mean a legal entity or an individual being a party to the Operative Agreements with the Dealer in respect of making Transactions, subject to Margin Trading.

"Customer Agreement"

shall mean the agreement between the Dealer and the Customer, which together with the Terms of Business and the Risk Acknowledgement and Disclosure are defined as "Operative Agreements" and govern the terms on which the Dealer deals with the Customer.

"Day Order"

shall mean a Pending Order which is automatically deleted at the end of the trading session.

"Dealer, The"

shall mean the company the Customer enters the Agreements into in respect of the legal basis of margin trading;

"Dealer, a"

shall mean an employee of the company who is authorised to process the Customer''s Instructions, executes orders and Stop Outs.

"Developer"

shall mean the "MetaQuotes Software Corp." company, the developer of the Trading Platform.

"Dispute"

shall mean

1. the conflict situation when the Customer believes that the Dealer as a result of any action or failure to act breaches one or more terms of these Terms of Business;
2. the conflict situation when the Dealer believes that the Customer as a result of any action or failure to act breaches one or more terms of these Terms of Business;
3. the conflict situation when the Customer makes a deal at an Error Quote (Spike), or before the first Quote comes to the Trading Platform on the Market Opening, or at the Quote received by the Customer because a dealer made a Manifest Error or due to the Trading Platform software failure.

"Equity"

shall mean: balance + credit+ floating profit - floating loss.

"Fast Market"

shall mean rapid movements on the market for the short period of time often causing Price Gaps. Generally it may occur immediately before or after any important event such as:

1. releases of main macroeconomic indicators on global economies, which have great impact on the financial market;
2. central banks decisions on interest rates;
3. press conferences and speeches of the central banks heads, heads of state, financial ministers and other significant announcements;
4. interventions;
5. terror attacks;
6. natural disasters or other "Acts of God" which cause the announcement of the state of emergency (or other restrictive measures) on the affected territories;
7. war or any other military actions;
8. political force majeure: dismissal or appointment (including election results) of the government executives;
9. any other similar events which influence price movements.

"Floating profit/loss"

shall mean unrecorded Profit/Loss on open positions at the current prices.

"Force majeure"

means events that could not be foreseen or prevented. Such as:

1. act of nature;
2. war;
3. terrorist attack;
4. government acts and other legislative and executive government authorities actions;
5. Computer Hacker attacks and other illegal actions in relation to Dealer.

"Free Margin"

shall mean funds on the Trading Account, which may be used to open a position. It is calculated as equity less Necessary Margin.

"GTC" ("Good Till Cancelled")

shall mean the Order which is valid until the Customer sends the Instruction to delete the Order.

"Gap level"

is the distance within the price gap expressed in pips/points, after which all types of orders are executed at the first obtainable after the gap Quote not at the Order level. "Gap level" value for each instrument is indicated in the Contract Specifications.

"Hedged margin"

means assurance, required by Dealer for matched positions opening and maintenance. It is noted in the Contract Specification for each Instrument.

"Hedged margin"

shall mean the required by the Dealer margin sufficient to open and maintain matched positions. The details for each Instrument are in the Contract Specifications.

"If-Done Order"

shall have the meaning given in clause 5.2.

"Initial margin"

shall mean the margin required by the Dealer to cover open positions. The details for each Instrument are in the Contract Specifications.

"Instant Execution"

shall mean the mechanism of providing Quotes to the Customer without prior Request. The Customer may make a Transaction anytime as the Customer sees the Quotes Flow in real-time.

"Instruction"

shall mean an Order of the Customer to the Dealer to open/close a position or to place/modify/delete an order.

"Instrument"

shall mean any currency pair or Contract for Difference.

"KROUFR"

shall mean Russian Financial Regulation Agency (http://www.kroufr.ru).

"Leverage"

shall mean ratio in respect of margin and transaction size: 1:33, 1:100, 1:200, 1:300, 1:400, 1:500. e.g. the ratio 1:100 means that in order to make a deal the required amount on the Trading Account is hundred times less than Transaction Size.

"Limit & Stop levels"

shall mean the distance in pips/points between the order level and current price (pending order level).

"Long position"

shall mean a Buy position that appreciates in value if market prices increase. In respect of currency pairs: buying the base currency against the Quote currency.

"Lot"

shall mean an abstract notion of the number of shares, base currency, or other underlying asset in the Trading Platform.

"Lot size"

shall mean the number of shares, underlying asset, base currency in one lot defined in the Contract Specifications.

"Manifest Error"

shall mean an error of a dealer who opens/closes a position or executes an Order at the price which significantly differs from the price for this Instrument in the Quotes Flow at the moment of taking this action, or any other dealer's action in respect of the prices which are significantly different from the market prices.

"Margin Level"

shall mean the percentage equity to necessary margin ratio. It is calculated as (equity/margin)*100%.

"Margin Trading"

shall mean leverage trading when the Customer may make transactions having far less funds on his Trading Account.

"Market Opening"

shall mean the time when the market opens after weekends, holidays or trading sessions time gaps.

"Matched positions"

shall mean long and short positions of the same size opened on the Trading Account for the same Instrument^[20].

"Maximum deviation"

is a parameter expressed in pips/points set in the "Open/Close position" Window in the Client Terminal.

"Necessary margin"

shall mean the margin required by the Dealer to maintain open positions. The details for each Instrument are specified in the Contract Specifications.

"New Margin"

shall have the meaning given in clauses 3.6.b), 5.24.b).

"Nontrading operation"

is an operation of depositing/withdrawing assets to/from the Trading Account respectively or operation of lending /reimbursement of credit.

"Normal Market Conditions"

shall mean the market where:

1. there are no considerable breaks in the Quotes Flow in the Trading Platform; and
2. there is no fast price movement; and
3. there is no large Price Gap.

"Normal market"

"Normal Market Conditions"

"Open position"

shall mean the result of the first part of the completed transaction. In this case the Customer shall be obliged to:

1. make counter transaction of the same volume;
2. maintain equity not lower than 20% of the Necessary Margin.

"Order"

shall mean an Instruction of the Customer to the Dealer to open or close a position when the price reaches the level of the Order.

"Order level"

shall mean the price indicated in the Order.

"Pending Order"

shall mean an instruction from the Customer to the Dealer to open a position once the price has reached the level of the Order.

"Personal Area"

shall mean the Customer's personal page on Alpari's website with Customer's contact details, depositing/withdrawing operations and any other information not related to trading;

"Point" / "pips"

shall mean the numerical value of the last, or right-most, digit of a Quote.

"Price Gap on the Market Opening"

shall mean the following:

1. the first Bid of the trading session is higher than the last Ask price of the previous session;
2. the first Ask of the current trading session is lower than the last Bid of the previous session.

"Price gap"

shall mean the following:

1. current Quote Bid is higher than Ask of the previous Quote; or
2. current Quote Ask is lower than Bid of the previous Quote.

"Price prior to Spike"

shall mean the close price of the minute bar prior to the minute bar with Spike.

"Quote"

shall mean the information of the current price for specific instrument, in the form of the Bid and Ask price.

"Quote currency"

the second currency in the currency pair which can be bought or sold by the Customer for the base currency.

"Quotes Base"

shall mean Quotes Flow information stored on the Server.

"Quotes Flow"

shall mean the stream of prices in the Trading Platform for each Instrument.

"Quoting"

shall mean the process of providing the Customer with the Quotes in order to make a transaction.

"Rate"

shall mean

1. for the currency pair: the value of the base currency in the terms of the quote currency;
2. for the Contract for Difference: the value of one unit of the underlying asset in terms of money.

"Request"

shall mean the Customer''s Order to the Dealer given to obtain a Quote. Such Request shall not constitute an obligation to make a transaction.

"Request Execution"

shall mean the mechanism of providing Quotes to the Customer with prior Request.

"Sell Limit"

shall have the meaning given in clause 5.1.

"Sell Stop"

shall have the meaning given in clause 5.1.

"Server"

shall mean the MetaTrader Server program of version 4.xx. The program is used to execute the Customer''s Instructions or Requests, to provide trading information in real-time mode (the content is defined by Dealer), in consideration of the mutual liabilities between the Customer and the Dealer, subject to terms of these Terms of Business.

"Server Log-File"

shall mean the file created by the Server, which records accurately to a second all Requests and Instructions, sent by the Customer to the Dealer as well as the results of their execution.

"Short position"

shall mean a Sell position for any Instrument in expectation of a price fall. For currency pairs: selling the base currency against the quote currency.

"Spike"

shall mean an Error Quote with the following characteristics:

1. a significant Price Gap; and
2. in a short period of time the price rebounds with a Price Gap; and
3. before it appears there is no rapid price movement; and
4. before it appears there are no important macroeconomic indicators and/or corporate reports.

Dealer has the right to delete Spikes from the Quote Base of the Server.

"Spread"

shall mean the difference between Ask and Bid prices.

"Stop Loss"

shall have the meaning given in clause 5.2.

"Stop out"

shall mean an Instruction to close the Customer''s Open Position without the consent of the Customer or any prior notice in case of insufficient funds required for maintaining Open Positions.

"Storage"

shall mean the charge for the position's rollover overnight. Storage can be both positive and negative. At the moment of release of this document the storage details are specified at http://www.alpari.ru/en/cspec/.

"Take Profit"

shall have the meaning given in clause 5.2.

"Thin market"

shall mean a market in which the Quotes in the Trading Platform are rare as opposed to the Normal Market Conditions. Such conditions are usual for Christmas, national holidays in G7, from 20:00 till 00:00 GMT etc.

"Ticker"

shall mean the unique identity number assigned for each Open Position or Pending Order in the Trading Platform.

"Trading Account"

shall mean the unique personified registration system of all completed transactions, open positions, orders and deposit/withdrawal transactions in the Trading Platform.

"Trading Platform MetaTrader: Alpari" or "Trading platform"

shall mean all programs and technical facilities which provide information of trading on the financial markets in the real time, allow to make transactions, define all mutual obligations between the Customer and the Dealer, as well as compliance of all terms and conditions. Simply, for these Terms of Business, the trading platform includes "Server" and "Client Terminal".

"Trading Platform Time Zone"

shall mean the time zone in which the Server Log-File records any event. At the time of the release of this document the Trading Platform Time Zone is Moscow time less 2 hours (GMT/BST + 1).

"Trailing Stop"

is executed only when the Client Terminal is on-line, having been successfully authorized.

"Trailing Stop"

shall mean

1. a trailing stop value set by the Customer;
2. the algorithm of managing "Stop Loss" orders:
   1. if open position's profit is less than Trailing Stop value no action shall be taken;
   2. once the profit (in points) of the open position has exceeded "Trailing Stop" value the Client Terminal gives an Instruction to place "Stop Loss" order at the level which is at the same range from the current price as the "Trailing Stop" value;
   3. once a new Quote has been received and the range between "Stop Loss" order level and current price has become higher than the Trailing Stop value, the Client Terminal sends the Instruction to the Server to modify "Stop Loss" order at the level which is at the same range from the current price as the "Trailing Stop" value.

"Transaction"

shall mean two counter deals of the same size (open and close a position): buy then sell and vice versa.

"Transaction size"

shall mean a lot size multiplied by number of lots.

"Type of account" or "Account Type"

shall mean trading account offered by the Dealer. Types of these accounts are specified on the "Our Services" webpage. The Customer chooses account type while applying for the account and it cannot be changed afterwards.

10.2. Words denoting the singular include the plural and vice versa; words denoting any gender include all genders.

10.3. Unless otherwise stated, a reference to a clause, party or a schedule is a reference to respectively a clause in or a party or schedule to these Terms of Business.

10.4. The clause headings are inserted for ease of reference only and do not affect the construction of these Terms of Business.

^[20] For example, if the Customer opens two buy lots, and three sell lots for the same instrument, then two buy lots and two sell lots are identified as matched positions, and one buy lot is identified as non-locked position.