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Trading Conditions

General

  • The client can trade 2 types of options:
    • Binary Options – conventional up/down type binary options on FX currency pairs.
    • Touch Binaries - binary options on FX currency pairs with 2 remote strike prices set around the open price of the option.
  • Dukascopy binary trading platforms are designed only for manual trading by the client. Use of any robots, spiders or other automated data entry system for submission of orders is expressly prohibited.

Contracts duration and timing

  • Binary options and Touch Binaries can only be traded intraday. No option will have an expiry time later than the settlement time, which is 21:59:59 GMT during winter time (20:59:59 GMT during daylight-saving time).
  • A 2-seconds countdown period is applied to every Binary Option and Touch Binaries market order (i.e. non-pending) before starting the execution. This means that if a client requests, at 12:00:00, the opening of an option with duration of 3 minute, the execution will actually start at 12:00:02 and expire at 12:03:02, provided that execution criteria were met. It is not possible to cancel or to modify the option during the countdown period (Option is in PROCESSING status).
  • The client shall preliminarily decide the duration of each Binary Options contract. The duration shall be defined in a number of hours and minutes between 3 minutes and 23 hours 59 minutes (maximum possible duration available only if the option is set right after the settlement time). Touch Binaries contract duration is always last until the settlement time. Limits of contract duration applicable by default are listed below. Dukascopy reserves the right to amend these limits at its entire discretion, without prior notice.
     
Instrument
Min contract
duration
Max contract
duration
EUR/USD
3 m
23 h 59 min
USD/JPY
3 m
23 h 59 min
GBP/USD
3 m
23 h 59 min
USD/CAD
3 m
23 h 59 min
AUD/USD
3 m
23 h 59 min
EUR/JPY
3 m
23 h 59 min
USD/CHF
3 m
23 h 59 min
GBP/JPY
3 m
23 h 59 min
NZD/USD
10 m
23 h 59 min
EUR/GBP
10 m
23 h 59 min
EUR/AUD
10 m
23 h 59 min
GBP/AUD
10 m
23 h 59 min
EUR/CAD
10 m
23 h 59 min
GBP/CAD
10 m
23 h 59 min
CAD/JPY
10 m
23 h 59 min
GBP/CHF
10 m
23 h 59 min
GBP/NZD
10 m
23 h 59 min
AUD/JPY
10 m
23 h 59 min

 

  • Dukascopy reserves the right to apply individual limits on contract amounts, single instrument and/or overall account exposures for selected trading accounts as well as for separate trading instruments. 

Trading amounts and exposures

  • Amount of trading orders submitted by the client is subject to limitations on single contract amount, total exposure on a single instrument and overall exposure of the account.
  • The number of pending and active contracts cannot exceed 100 at a time.
  • Exposure is calculated on the total amount of contracts in ACTIVE status, irrespective of their side (Call or Put) and underlying instrument. For instance, an active Put contract for 100 USD and an active Call contract for 200 USD build up a total exposure of 300 USD.
  • Limits on contract amounts and exposures applicable by default, depending on the base currency of the trading account, are listed below. Dukascopy reserves the right to amend those limits at its entire discretion and without prior notice. 
Base currency
Min contract 
amount
Max contract
amount
 
Max exposure
 
USD
1
1'000
5'000
EUR
1
900
4'500
CHF
1
1'000
5'000
GBP
1
800
4'000
JPY
100
100'000
500'000
CAD
1
1'300
6'700
SGD
1
1'300
6'700
PLN
1
4'000
20'000
HKD
1
7'800
40'000
AUD
1
1'300
6'500
DKK
1
6'700
35'000
MXN
1
1'300
95'000
NOK
1
8'400
42'000
NZD
1
1'400
7'000
RUB
1
64'000
320'000
SEK
1
8'500
43'000
TRY
1
3'000
15'000
ZAR
1
15'000
75'000
  • Dukascopy reserves the right to apply individual limits on contract amounts, single instrument and/or overall account exposures for selected trading accounts as well as for separate trading instruments. Currently, the following trading instruments have 2000 USD Max exposure limit: EUR/USD, GBP/USD, USD/CAD, AUD/USD, EUR/JPY, USD/CHF, GBP/JPY and 500 USD Max exposure limit: USD/JPY.

Options in Pending status

  • Clients have the possibility to place pending entry options on FX currency pairs (Binary Options) to be executed at a specific date and time of the current week. Pending options cannot be placed for dates and times further than the current week.
  • To be valid, a pending option shall contain at least: (i) the direction of the option contract (Call/Put), (ii) the concerned underlying instrument, (iii) the desired contract amount/premium to be paid, (iv) the duration the option contract shall last if open, and (v) the triggering date and time. The client may additionally, without being obliged to do so, indicate a price condition and/or the minimal acceptable base payout percentage. At the triggering time entered by the client, the system checks whether the pending option may be executed based on the conditions set by the client and Dukascopy requirements (existence of available margin, absence of same-instrument options with the same maturity time, approval of the Terms and Conditions, etc.) or if the pending option shall be rejected.
  • Clients can cancel orders in PENDING status at any time. Orders in PROCESSING and EXECUTING status cannot be cancelled by the client.

Order Execution Policy

  • For Binary Options the strike price is fixed at the moment when the option contract starts/is executed and is based on the ASK price, of this moment, for Call options and on the BID price, of this moment, for Put options.
  • For Touch Binaries there are two strike prices: Profit and Loss strike levels. Profit strike level is set by the client. Client can define the Profit strike level by the distance from the contract opening price (distance is calculated from Ask price for CALL options and from Bid price for PUT options). Loss strike level is automatically set in the opposite direction to Profit strike level on the same distance from the Ask price for Call options and from the Bid price for Put options at the moment when the option contract starts (turns to EXECUTING status). Dukascopy reserves the right to apply minimum and maximum Profit/Loss strike levels for separate trading instruments as well as to amend those at its entire discretion, without prior notice. 
  • The strike gets hit by the ASK price for Put options (Short positions) and by the BID price for Call options (Long positions).
  • In order to be considered a Binary Option to mature In-the-money (ITM) the option's underlying instrument price at the time of expiry should reach and exceed the strike price (e.g. the ASK should be under the strike for Put options and the BID should be above the strike for Call options on FX currency pairs). Maturing at a price that exactly matches the strike (but does not go under or above) is considered as an Out-of-the-money (OTM) outcome.
  • In order to consider a Touch Binary to be maturing In-the-money (ITM) the option's underlying instrument price at any time prior to the expiry should reach or exceed the Profit strike level (e.g. the ASK should hit the Profit strike level for Put options and the BID should hit the Profit strike level for Call options on FX currency pairs). If the option's underlying instrument price at any time prior to the expiry should reach or exceed the Loss strike level, it is considered as an Out-of-the-money (OTM) outcome. If the option's underlying instrument price does not reach neither of the strike prices until its expiration point , Touch Binary option is cancelled without settlement (maturity without any trading gain or loss) and the contract amount is returned to the client.
  • At least one price update (tick) should appear between the moment of the opening of an option contract and the maturity of this contract. Otherwise, the option contract is cancelled without settlement (maturity without any trading gain or loss) and the contract amount is returned to the client.
  • At the maturity of a Binary Option and Touch Binaries contract the relevant price determining if the option is ITM or OTM is the price of the last available tick at the expiration, including the exact time of the expiration (the level of precision is the millisecond). 
  • The source of the underlying FX prices is the quotations available on Dukascopy trading platforms (SWFX Marketplace).
  • Order execution is subject to the availability of liquidity in the system and the availability of margin on the account at the moment when the contract is being accepted for processing. In case contract amount exceeds the available margin and provided that all other applicable limits are respected (exposure, contract amount etc.) the order is automatically filled partially to the extent permitted by the size of the available margin.
  • Confirmations of executions, partial fills and rejects are displayed electronically in the client reports. Dukascopy may charge fees for providing any other form of confirmation and account statement.

Abusive practices

  • The trading of binary options shall be individual. Any voluntary or involuntary coordinating, copying or grouping of trading orders by or between several clients on more than one client account, including but not limited to the use of trading signals, messenger, PAMM technology or collective trading decisions/orders placed on several client accounts at once, is regarded as a breach of the present Trading Conditions, in particular, a breach of the above exposure limits, and gives Dukascopy the right to cancel part or all concerned trades together with their associated profits and losses, at its entire discretion.
  • Dukascopy may, at its own discretion and without having to provide any justification, refuse to open an account or close an existing account, including but not limited when there is reasonable suspicion that any account is traced to the same contacts, IP address or/and demonstrated identical trading behavior. Such accounts may also be frozen, with the subsequent cancellation or reversal of associated profits and losses received through such accounts.
  • It is prohibited to attempt abusing Dukascopy binary trading platforms in an attempt to make illegal profits or to profit by applying practices such as price manipulation, exploitation of confidential information (insider trading), lag trading, time manipulation or by taking advantage of the server latency.
  • Reasonable suspicion that the client performed abusive trading such as, but not limited to, manipulations or insider trading, gives Dukascopy the right, at its absolute discretion, at any time and without prior written notice, to take one or more of the following actions:

• Restrict the client’s trading activity by applying individual trading conditions or suspending access to selected trading instruments.
• Temporarily or permanently suspend access to the trading account.
• Cancel or revoke any open or pending contract with associated profits/losses (if any) gained through abusive trading or the application of artificial intelligence in the trading account.
• Terminate the Agreement without prior notice to the client.
• Take legal action for any losses suffered by the company

  • The rights described in this Section shall be in addition to any other rights which Dukascopy may have against the Client under any agreement or under applicable law.

Trading rescission

  • Trading on the Dukascopy binary platforms or partly on one or more binary instruments may be cancelled with no advanced notice. The client will have no claim or right of indemnification for damages allegedly caused by trading rescission, whether for carried out transactions or for transactions allegedly intended to be carried out.
  • Trading rescission may be applied either to all trading accounts at once or on individual basis.
     

 


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