When a client holds an Account that is denominated in a currency other than the client currency, a conversion rate cost is incurred. Similarly, when a position is held in an Account that is denominated in a currency different from the instrument currency, a conversion rate is incurred. The conversion rate cost does not apply to margin collateral, but is applicable for the settlement of actual payments e.g. the buying or selling of cash stocks, paying or receiving options premium etc.

The total conversion rate cost can include a conversion rate fee, in the case where there is a spread between FX mid-price and the FX at the time of trade execution.

Cash Movements

Conversion rates are applicable to all cash movements. In the screenshot below, the column ‘Conversion Rate’ has been inserted to show the conversion rate that was applied to convert the cash movements from Account currency (USD) to Client currency (EUR). The conversion rate can be calculated by dividing the fields ‘Amount Client Currency’ by the ‘Amount Account Currency’.

Aggregated Amounts

The conversion rate is applied to all aggregated amounts where there is a settlement of actual payments e.g. the buying or selling of cash stocks, paying or receiving options premium etc. and also to determine Position Values and Position Exposures in Client currency.

Net P/L

Conversion rates are not applied in the Net P/L calculation. Position values, however, are converted from Account currency to Client currency.

In the example above, the ‘Conversion Rate’ column has been inserted to show the applicable conversion rate for determining the Position Value in Client Currency. This can be calculated by dividing the column ‘Amount Client Currency’ with the column ‘Amount Account Currency.

Following the example in the screenshot, to calculate the Position Value in EUR from USD:

To calculate the Net P/L, the Position Value from the previous trading day is subtracted from the current trading day’s date Position Value. Note that there is no 1:1 conversion in Net P/L from Account currency to Client currency. The Net P/L values in Account currency and Client currency are independent of each other. The previous trading day’s Position Value in Account currency is subtracted from the current trading day’s Position value in Account currency, and the previous trading day’s Position Value in Client currency is subtracted from the current trading day’s Position value in Client currency. Taking the example from the screenshot, Net P/L is calculated as:

Closed Positions

On Closed Positions, the conversion rate is applied to the booked amounts, but not when calculating the realised P/L. This complies with the stated guideline that conversion rate costs are incurred when buying or selling cash stocks. In the screenshot below, the conversion rate is applied to the booked amount when the position is opened, and the booked amount when the position is closed.

The realised P/L in Account currency and Client currency is not a 1:1 conversion. The realised P/L values in Account currency and Client currency are independent of each other. To calculate realised P/L, the booked amount closed (Account currency) is subtracted from the booked amount open (Account currency); and the booked amount closed (Client currency) is subtracted from the booked amount open (Client currency).

The Account Interest Details report can be downloaded here: Account > Historical Reports > Account Interest Details

Client interest is calculated on a daily basis but booked monthly, therefore, client interest calculated during the course of the month is registered as Change in Accruals until it is booked on the account. Note that in the screenshot below, the Account Value is for the period 1^st May – 31^st May. This means that all interest amounts calculated during that period are registered under Change in Accruals, until the booking date.

The applied interest rate charged, is dependent on whether the Value Dated Cash Balance is negative or positive. If the Value Dated Cash Balance is negative the interest charged is the (Ask Rate + Markup). Whereas if the Value Dated Cash Balance is positive, the interest charged is the (Bid Rate – Markup). The interest amount is calculated as:

Below is an example of the interest amounts that are calculated on a daily basis during the course of the booking month.

Note that in this case, the interest calculated on 29-05-2020 is not included in the Change in Accruals during the period of 1st – 31st May. This is because the interest charge is for 3 interest days and is only first booked on the 1st of June.

These interest amounts accrued during the course of the month are then aggregated and booked at the end of the booking month. In this case, all interest amounts, including the interest amount booked on 1^st June, are booked to the account on the 1^st June.

Purpose of the Cost Summary

The cost summary is a result of MiFiD II regulations that were introduced to make clients aware of all costs associated with trading financial instruments. The cost report creates greater transparency on costs and charges incurred by a client with regards to the management and administration of investments, and the impact that those costs and charges have had on the performance of investments. Furthermore, It includes costs that were not previously shown such as spread and markups.

Ex-post Costs

The cost report shows the ex-post/actual costs within a given investment period and allows the client to assess the costs incurred versus the benefits received e.g. in the form of higher returns. Below is a description of the cost classifications:

Example of Cost Summary

Aggregated amounts are presented in the Aggregated Amounts Report on G&T Trader;  on Account and Aggregated Account level, per day, per instrument. These amounts are shown in Instrument, Account and Client currency; using end-of-day exchange rates.

The Performance Overview and P/L Analysis Overview also feature aggregated amount values.

An aggregated amounts can be a:

• Booked amount - These values affect the cash balance e.g. share amount, commission
• Constructed Amount - These amounts are calculated based on a range of other amounts or values e.g. P/L, markup

 Note that there can be cancellations and corrections on the aggregated amounts.

To navigate to the Cash Movements summary: Account > P/L Analysis > Cash Movements.

The Cash Movement analysis shows how the changes in the Cash Balance have occurred. It shows the breakdown of cash inflows and outflows, within a given reporting period. The Total Cash Movements are the sum of cash movements within a given reporting period, excluding cash balance currency movements. The Total Cash Movements are thus affected by realised P/L, other bookings and the sum of cash transfers in the period.

The Cash Movement summary can be read as:

• Date - the date when the booking transaction occurred
• Booking type - the description of the transaction affecting the cash balance e.g. commission, share amount
• Instrument - only relevant for security-related transactions that affect the cash balance. All non-security related transactions are marked as 'Non instrument'
• Amount - the total amount by which a booking affects the cash balance

To download the excel Closed Positions report: Account > P/L Analysis > Closed Positions > Export.

The Closed Positions excel report follows the FIFO valuation method and can be read as:

• Amount – this is the amount/number of units of the closed position e.g. for a sell transaction of 55 units of XYZ at GBP 16, then the ‘Amount’ of 55 represents the closed position
• Amount Open – the amount/ number of units purchased e.g. 50 units of XYZ were purchased at a price of GBP 15, then the ‘AmountOpen’ is 50 units. A further 10 units of XYZ are purchased at a price of GBP 16.50 and there is another ‘AmountOpen’ registered of 10 units
• Amount Close – is the amount/ number of units that have been closed of a specific open position. A close position of 55 units is made up first by closing the 50 units open position and then partially closing the 10 units open position - this follows the FIFO valuation method

Below is an illustration of the above examples:

To navigate to Closed Positions: Account > P/L Analysis > Closed Positions.

The Closed Positions summary gives a breakdown of all positions on the Account, that were closed during the reporting period. Closing a position refers to removing a position completely from an Account by selling it off. The profit/loss shown under Closed Positions, is calculated using the FIFO valuation method.

The Closed Positions summary can be read as follows:

• Instrument - the name of the security that was traded
• Close date - the date when the trade was executed
• Amount - the quantity or number of units traded
• Open - the price that was paid to open the position. Opening a position refers to adding a new position to the Account
• Close - the price at which the position was closed, and closing a position refers to executing a trade that removes a position completely from the Account
• Open Booked Amount - the transaction value of the opening position trade. The total amount (including costs) paid to add the position to the Account
• Close Booked Amount - the transaction value of the closing position trade. The total amount received in cash (when all the security trade-related costs have been paid), to remove the position from the Account
• P/L - the difference between the transaction value to open a position and the transaction value to close a position. It is calculated as [Closing Booked Amount - Open Booked Amount]

The Trade Executed Report gives an overview of all trades that have occurred within a given reporting period. The report can be read as follows:

• Instrument - the name of the security that was traded
• Trade time - the date when the trade was executed
• B/S - specifies whether it is a 'Buy' or 'Sell' trade that was executed
• Open/Close - an 'Open' trade was made to add a new position to the Account, whereas the 'Close' trade removes a position completely from the Account
• Amount - the quantity or number of units traded
• Price - the trade price
• Traded Value - is calculated as the Amount x Price
• Booked Amount - for sell transactions, this is the Traded Value, minus the security trade-related costs and for buy transactions, it is the Traded Value plus the security trade-related costs

Galt & Taggart supports FIFO and Mark-to-Market valuation.

Mark-to-market

The mark-to-market valuation method works on the premise of valuing positions at their current market value. The P/L is shown as Instrument Position P/L. Let us assume in March there was a purchase of 50 units of stock XYZ at a price of GBP 15 each, and a commission of 2%. The total cost of the transaction is GBP 750 plus the GBP 15 commission. The total costs incurred are calculated as:

At the end of the day, the XYZ stock price has increased to GBP 16. The current market value of the position for XYZ is:

Using the mark-to-market valuation method, the Instrument P/L for stock XYZ on Day 1 is:

The following day, the market price for XYZ stock has increased to GBP 16.50 by the end of the day. The end-of-day current value (Position Value), at the end of Day 2 is:

And given that the Position Value at the end of Day 1 was GBP 800, and this is the opening Position Value used at the start of Day 2. The Position Value at the end of Day 2 is GBP 825. The profit/loss for stock XYZ, using the mark-to-market valuation is calculated as:

How to determine PnL for tax reporting

The Portfolio Report shows the Profit & Loss breakdown, in client currency. The value of the positions is calculated using mark-to-market valuation.

To download the Portfolio Report: Account > Historical Reports > Portfolio Report > Open

The mark-to-market value of a position, at the end of a given period, is shown on the Portfolio Report. It can be read as:

• Value at the beginning of period – the Position Value at the end of last period e.g. 31^st December 2019, which is the Position Value at the beginning of the current valuation period e.g. 1^st January 2020
• Cash Bookings – this is the Transaction Value to open the position e.g. 50 units of XYZ at GBP 15 and a commission of 2%. Then the Cash Bookings are equal to the Transaction Value of opening the position which is GBP 750 plus the GBP 15 for commission
• Value at the end of the period – the Position Value at the end of the period, where the portfolio holds 50 units of XYZ at a current market value of GBP 16.50
• Profit & Loss – is the Instrument Position P/L, which is the difference between the Position Value at the end-of-period and the Position Value at the beginning-of-period or the difference between Position Value at the end-of-period and the Cash Bookings
• Costs – any trading activity costs related to the security e.g. commissions, margins
• P/L ex. costs – the Instrument Position P/L, costs incurred to open the position are not accounted for

Below is an example from the Portfolio Report, using the scenario above of stock XYZ:

Galt & Taggart supports FIFO and Mark-to-Market valuation.

FIFO

The FIFO valuation method assumes that the securities that are purchased into a portfolio (or Account) first, are sold out first. Therefore, the costs that are incurred first are recognised first. Let us assume in March there was a purchase of 50 units of stock XYZ at a price of GBP 10 each and commission of 2%. The total cost of the transaction is GBP 500 plus the GBP 10 commission. The costs incurred in Period 1:

In April, a further 10 units of stock XYZ are purchased at a price of GBP 20 and a commission of 2%. The total cost of the transaction is GBP 200 plus the GBP 4 commission. The costs incurred in Period 2:

At the end of November, 55 units of XYZ are sold at a price of GBP 15, the closing Transaction Value is determined first so as to calculate Realised P/L. And according to the assumptions of FIFO the units that were purchased first are sold off first. Therefore, the costs that were incurred first are recognised first in determining the Realised Position P/L. The total cost of the transaction is GBP 825 plus the GBP 16.50 commission. The income gained in Period 3:

The closed position is of 55 units, but only 50 units were bought in Period 1. To determine P/L using FIFO, the cost of the first 50 units of the closing position are recognised first:

The costs from Period 2 are recognised after all the costs from Period 1 have all been taken into account.

The Total Realised Position P/L is calculated as:

How to determine PnL for tax reporting

The Closed Position report gives an indication of the performance of a portfolio ( or Account)  within a specific valuation period. Please note that the report calculates profit/loss based on FIFO principles, which might not be the principle used by your local tax authorities. The report should only serve as an indication of profit/loss in the period. Always reference the profit/loss calculation against the underlying trades found in the trades report.

To navigate to the P/L Summary: Accounts > P/L Analysis > P/L

The P/L summary shows the Instrument P/L for all open positions; for each trading day. That is to say, the difference between the Position Value at the start of the trading day and the Position Value at the end of the trading day, for open positions. The values are shown on instrument levels (as Instrument P/L) and group levels (Cumulative P/L) e.g. for a given asset type or sector, as the sum of all Instrument P/L for a specific asset group.

Instrument P/L is calculated based on  Mark-to-market principles. Note that this might not be the principle used by your local tax authorities, therefore, the figures presented should only serve as an indication of profit/loss in the period. Always reference the profit/loss calculation against the underlying trades found in the Trades Report.

The Portfolio Report provides a breakdown of overall performance on an Account or aggregated accounts:

Report Summary

The summary gives a snapshot of the Account Value for an Account or aggregated accounts, as of the end-of date reporting period. It tells the breakdown of the Account Value, by informing how much of the value is attributed to cash and value of positions. The percentage change of the Account Value measures the cumulative Percentage Returns in the reporting period, based on the principles of the time-weighted rate of return. The profit or loss pertains to unrealised P/L on open positions at the end of the reporting period.

Account Value

The Account Value is calculated by adjusting the beginning-of-period Account Value to determine the end-of-period Account Value. Adjustments affecting the Account Value include e.g. Realised P/L of investments during the period and the unrealised P/L on open positions, Cash and Security Transfers, other costs and adjustments such as subscription payments, foreign currency cash movements, interest etc. 

Profit & Loss

Gives the total Position P/L on holdings, which are the changes to the Account resulting from all security-related activities (realised and unrealised activities). This includes: realised and unrealised P/L, costs related to trading e.g. commissions, and corporate actions that affect the value of a position. Profit and loss are determined for the entire reporting period.

Portfolio as of end-date

Gives the breakdown of unrealised profit/loss on an open position. The value of each position is presented as the amount/value currently invested in a particular position (absolute exposure), and the percentage value of each open position in relation to the value of all open positions (absolute exposure percentage) as at the end of the reporting period.

Costs Overview

The costs overview is a summary of the total costs and charges paid for services received, and on transactions undertaken during the reporting period.

Profit & Loss Breakdown

The profit or loss on closed positions, during the reporting period. The profit and loss are given as a sum on all closed positions for each security.

Bookings Breakdown

A breakdown of all security and non-security related activities resulting in cash bookings.

When entering a CFD (Contract for Difference) trade, you will either buy or sell the particular product you are trading. The price at which you enter the market is the gross traded entry price. As shown in the screenshot below, a US Natural Gas position of 189,091 was entered at a gross traded entry price of USD 1755.

During an investment period, there are capital inflows (including external cash inflows and security deposits)  and capital outflows (including external cash outflows and security withdrawals) on the Account. The size and timing of capital flows have an impact on the investment’s rate of return. These capital inflows and outflows can distort the return on the Account, by either overstating or understating the return as a result of the effects of the capital inflows or outflows.

Consider an Account with a 7% return at the end of an investment period. If 3% is attributable to a cash inflow that was made on the last day of the investment period, then the return presented does not give a complete picture. The 3% return resulting from the capital inflow, distorts the return on the Account.

To give a clearer picture of the rate of return, an investment period is broken down into sub-periods. Each sub-period reflects a capital inflow or outflow occurrence, where capital flow effects are incorporated in calculating return, within the sub-period that the capital flow is relevant. Galt & Taggart breaks down sub-periods into trading days so that capital flows are the sum of capital flows on a given trading day.

To calculate the time-weighted rate of return, consideration is made for the time (sub-period in which the capital flow occurred) and the size (capital flow amount). 

Example:

The example below depicts an investment period with two sub-periods. The investment has a value of USD 1000 at the beginning-of-day 2nd May and grows in value to USD 1250, by 2nd May end-of-day. On 3rd May a cash inflow of USD 200 is received on the Account, bringing the Account value to USD 1450. The investment has a value of USD 1650 on 3rd May end-of-day. The investment period is broken down into two sub-periods: 2nd May where the Account grows in value to USD 1250 and a second sub-period, 3rd May where there is a cash inflow of USD 200 and growth in the Account value. The time-weighted rate of return is then calculated by first calculating the rate of return in each sub-period:

And then the time-weighted return is the accumulated rate of return of all the sub-periods, where the sub-periods are multiplied together and presented as a percentage:

Read more on how daily Percentage Returns are calculated taking into account whether the sum of capital flows on a given trading day is negative or positive. 

Depending on the country you are relocating to, the procedure will vary. 

1. If you are relocating to the US or to a sanctioned country such as north Korea, Iran, Syria, Yemen or Sudan to name a few, you will not be able to maintain your account with Galt & Taggart.
2. If you are moving to a country that has a different legal entity from the country you are currently serviced by, you will need to close the account and reopen a new account with that specific entity (example: Australia and Japan).
3. On the assumption that such exceptions are not applicable to your case, you can simply contact us to update your address and contact details and resume using the account normally. 

Please don’t hesitate to contact us if you require more clarifications/assistance.

The Performance Overview evaluates how returns on an Account or group of aggregated accounts have been achieved. Performance is measured for a specified time period e.g. Year-to-date, which measures performance from the beginning of the year to the previous day's end-of-day.

The Performance Overview assesses performance using the following measures:

1. Account Value
2. Instrument Profit & Loss
3. Returns
4. Cash 

Account Value 

The change in Account Value provides a summary of the difference between the Account Value at the beginning of an investment period (e.g. the beginning of the year) and the Account Value at the end of the investment period (e.g. the previous day's end-of-day). Factors such as Position P/L, other bookings etc. impact the end-of-period Account Value.

Instrument Profit & Loss

Shows the daily profit of each position held in the Account. The instrument profit and loss calculation includes realised (made from closing positions) and unrealised (resulting from changes in the price of open positions) profits, and capital gains and costs (including fees, dividends, coupon payments and other corporate action distributions).

It measures the daily change in a position's value, from the beginning of the trading day to the end of the trading day; making adjustments for external cash flows and security transfers. Cash inflows and security deposit transfers impact the value of a position positively, while cash outflows and security withdrawal transfers are subtracted from the end-of-day position value.

Returns

Returns are measured as a rate of return and as risk-adjusted returns.

The rate of return calculates the net profit or loss observed each day on an Account, over a specified investment period. These returns include realised (made from closing positions) and unrealised (increase in Account Value from changes in the price of open positions) profits, and capital gains and costs (including fees, dividends, coupon payments and other corporate action distributions). These returns can be measured against a benchmark to make a comparison as to whether an Account has outperformed or underperformed, relative to benchmark returns.

The risk-adjusted returns measure how much risk was involved in generating the returns observed realised returns) within a given investment period. When Accounts with similar returns are measured against each other, the Account with the lowest risk outperforms the Account with higher risk. This is because the lower risk Account achieved the same returns at a lower risk.  Such risk-adjusted measures include Standard Deviation, Maximum Drawdown, Sharpe ratio and Sortino Ratio.

 Cash

The change in Cash provides a summary of the difference between the Cash at the beginning of an investment period (e.g. the beginning of the year) and the Cash at the end of the investment period (e.g. the previous day's end-of-day). Factors such as Position Bookings, cash transfers etc. impact the end-of-period Cash.

The Sortino ratio measures the excess returns earned per unit of downside risk (negative returns within the investment period). The excess returns are the difference between realised returns earned on the Account, and a risk-free rate (best risk-free alternative to investing such as holding cash). Galt & Taggart uses a risk-free rate of zero and calculates Sortino Ratio for a period of at least 6 months. To measure the risk taken over a year, downside risk takes into account, only the days where a loss has occurred during the period. The downside risk is the standard deviation of negative returns (semi deviation) and is focused on returns that fall below target return (the average return). The downside deviation is calculated as:

Assume a realised return of 6% and a risk-free rate of 0%, with a downside deviation of 13%. The Sortino ratio for the period is:

The Sharpe ratio measures the returns on an Account, in comparison to the risk taken to achieve those returns. It informs on the excess returns earned over and above a risk-free rate (best risk-free alternative to investing such as holding cash). Galt & Taggart uses a risk-free rate of zero and calculates Sharpe Ratio for a period of at least 6 months. As the Sharpe ratio is a reward-to-risk ratio, the Account performance is risk-adjusted. This means that the excess returns earned over the risk-free rate are measured in relation to the risk (standard deviation) of the Account. The Sharpe ratio is calculated as:

Assume a realised return of 6% and a risk-free rate of 0%, with a standard deviation of 4.04%. The Sharpe ratio for the period is:

A high Sharpe ratio (above or equal to 1.0) indicates that the returns for the period were high (or 'good') relative to the risk taken in the period.

Standard deviation is the measure of investment risk and return, and the amount by which returns deviate from the average return observed within the investment period. The variance (deviation from the average return) of the returns is an indication of volatility (fluctuation), and the risk undertaken to achieve those returns. It becomes relevant when assessing historical returns as a deterministic measure of expected future returns, in relation to the risk assumed. The following steps are taken to calculate the standard deviation:

1. calculate the arithmetic mean
2. calculate variance
3. calculate standard deviation

Arithmetic Mean

If returns were measured every month over a period of six months then the average return (arithmetic mean) in the investment period would be calculated as:

Variance

The variance of the returns would be a spread of the returns around the arithmetic mean (7.5%, which is the average return observed in the investment period). The variance is calculated as the difference between each return in the year, and the average return (7.5%). The difference between the return observed and the average return is squared, to find the variance. This adds weight to those results that are furthest from the average return. The outliers are significant when measuring the dispersion of returns, therefore squaring the deviations ensures that the values above the average return to do not cancel out those values below the average return. The sum of the variance of all the returns is calculated as:

Standard Deviation

To determine the norm of these returns (information about how dispersed the returns are), the standard deviation is calculated as the square root of the variance. This gives the average amount by which the returns over the six month period, deviate from the average return. The higher the standard deviation of returns, the higher the volatility of returns (greater fluctuation in the returns observed in the investment period). High volatility indicates that high risk was undertaken during the investment period.

Standard deviation informs us about the dispersion of returns relative to the average return, and the normal range of returns that can be expected to be observed. With an average return of 7.5% and a standard deviation of 4.04%, returns can be expected to lie between 3.46% (7.5% - 4.04%) and 11.54% (7.5% + 4.04%).

Galt & Taggart calculates standard deviation on daily returns.

Maximum drawdown can be used to assess Account returns relative to a benchmark index, as a means to identify strategies that show steady outperformance overtime. It measures the biggest value fall (trough) in the Account over a period of time, from a value increase (peak) during the period. Maximum drawdown is calculated as:

Assume that within a specified investment period an Account starts with USD 6000 and increases in value to USD 9000, the value then falls in value to USD 4000 before increasing in value to USD 10,200. The Account then falls in value again to USD 4500 and then increases to USD 10,500. The maximum drawdown for this Account will be calculated as:

Note that the highest peak of the Account is USD 10,500 and a decline in value of USD 5000  (USD 9000 - USD 4000) was also registered. This, however, is not the biggest loss during the investment period, as a loss of USD 5,700  (USD 10200 - USD 4500) is later observed. Maximum drawdown thus measures the largest drop in Account Value in relation to the peak from which the value is dropping.

Galt & Taggart measures maximum drawdown over a rolling 12 month-to-date period. The maximum drop in Account Value, from a peak, is used to calculate the maximum drawdown over a period of 12 months.

Winning percentage days gives the number of days, within a given investment period e.g. Year-to-date, with a positive percentage return. Whilst winning percentage on closed positions measures the number of trades that closed (were sold off) at a profit, within a given investment period.

The winning percentage trades take into account for a given investment period, the number of trades with a positive Realised P/L within the investment period e.g Last year.  A positive realised P/L means that positions were closed (sold) at a higher price than the price at which the position was opened (bought). The winning percentage trades gives the percentage of trades with a positive realised P/L, relative to the number of total trades executed within the investment period. 

The winning percentage days indicates,  the number of profitable days (where a positive percentage daily return was observed) within an investment period, as a percentage of the total number of trading days in the investment period. For example, a year-to-date analysis includes the total number of trading days from the beginning of the year until end-of-day yesterday. The winning percentage days would assess the number of profitable days within that year to date period, relative to the total number of trading days.

The Daily Percentage Return includes realised (made from closing positions) and unrealised (increase in Account Value from changes in the price of open positions) profits, and capital gains and costs (including fees, dividends, coupon payments and other corporate action distributions).

The calculation for Daily Percentage Return, is based on the principles of the time-weighted rate of return and can be measured in comparison to the performance of a specified benchmark. To ensure that returns are not overstated, Galt & Taggart’s calculation for Daily Percentage Returns takes into account whether the net capital flows are positive or negative. Capital flows include all external cash flows and external security transfers e.g. when clients transfer securities into/ out of an Account or deposit/withdraw cash from an Account. 

Positive Capital flow

Where net external capital flows are positive i.e. where the capital inflows outweigh capital outflows during the course of the trading day, then all capital flows are assumed to have been generated at the beginning of the day.  Cash and security injections are assumed to have occurred at the beginning of the day and assumed to be available for use on the Account from the beginning of the trading day. Percentage return in this instance is calculated as:

Negative Capital flow

Where net external capital flows are negative i.e. where the capital outflows outweigh capital inflows during the course of the trading day, then all capital flows are assumed to have been generated at the end-of-day. Cash withdrawals and outgoing security transfers are assumed to have occurred at the end-of-day and assumed to be have been available for use on the Account until the end-of-day. Percentage return in this instance is calculated as:

The daily percentage returns are displayed in the Performance View.

Top 3 Gainers

The top 3 gainers rank positions in an Account, according to Instrument P/L levels. It determines the three positions that have achieved the highest growth in position value within a given period e.g Year-to-date.  A comparison is made of the Instrument P/L levels of all positions held in the Account.

Top 3 Losers

The top 3 losers rank positions in an Account, according to Instrument P/L levels. It determines the three positions that have contributed the biggest losses within a given period. A comparison is made of the Instrument P/L levels of all positions held in the Account, to ascertain the top three losers.

Monthly Total P/L is the sum of Total P/L for a given calendar month, from the first trading day in the month to the last trading day in that month. The Total P/L for each day in the given month is calculated, and the sum gives the Monthly Total P/L. 

The Monthly Total P/L table shows the Monthly Total P/L for all years from the year of Account inception.

Instrument P/L the change in the value of a position, taking into account costs associated with (e.g commissions) or income earned (e.g realised P/L) on that position. Instrument P/L can be viewed on Account level or for aggregated accounts; for a specific period in time e.g. Last year. The total sum of all Instrument P/L on the Account makes up the Position P/L shown in the Account Value summary.

The bar graph shows the total Instrument P/L for each product class invested in within that specified time period.

Clicking on the bar graph will show the breakdown of the Instrument P/L for each security within the given product (asset class).

Above, is shown an Account that holds nine positions in the product class, Forex. The Instrument P/L for each individual position is calculated, and the sum of the Instrument P/L for the nine positions is shown in the asset class bar graph. The asset class bar graph shows the sum of Instrument P/L for the asset class, whereas the breakdown of the bar graph shows the Instrument P/L for each of these nine positions.

The Profit / Loss for an instrument for a given time period is always calculated as:

The Transaction Value is subtracted from the Position Value when a buy transaction is executed, to reflect that the Account incurs a cost in adding the instrument to the Account (costs related to trading activities). Whilst the Transaction Value is added to the Position Value when a sell transaction is executed. This reflects that the Account gains revenue (realised profit/loss) from the sale of an instrument held.

Note that the Transaction Value includes trade-related costs such as share amount, commission, exchange fees, stamp duty etc. 

Cumulative P/L is shown as the graphical representation of the Position P/L, within a given period. Thus, an analysis of Year-to-Date will show the end-of-day Position P/L  for each day within that analysis period. The figures depicted in the graph correspond to the Position P/L that is shown in the Account Value Summary, for each day within the given analysis period. It is calculated as:

Shown graphically below:

Total P/L

Assuming a year-to-date analysis, which is the period from the beginning of the year to the previous day's end-of-day. Then Total P/L measures the previous day's Account Value less the Account Value at the beginning of the year, and less any cash and security transfers during the period.

Cumulative P/L

An analysis of year-to-date Cumulative P/L would show the end-of-day Position P/L (changes resulting from security-related activities) for each day within that period. The figures depicted in the graph would correspond to the Position P/L shown in the Account Value summary, for each day within the given analysis period. 

Position P/L are the changes to the Account resulting from all security-related activities (realised and unrealised activities). This includes:

• Unrealised profit/ loss (Account changes resulting from price movements on positions held)
• Realised profit/ loss resulting from closing positions (money earned or lost from the difference between the price at which a security was bought, and the price at which the security was sold)
• Costs related to trading activities (transaction costs, broker commissions and spreads)
• Corporate actions that increase or decrease the quantity or value of a position held

To calculate position P/L requires the Instrument P/L of all positions on the Account: 

And the Position P/L is the sum of all Instrument P/L on the account or aggregated accounts:

Position P/L affects the Account Value and is measured for a given period of time. If the Account Value is being measured from year-to-date, then the values shown will be from the beginning of the year to the previous day's end-of-day.

Position P/L

Position P/L are the changes in the Account resulting only from all security-related activities (realised and unrealised activities). This includes:

• Unrealised profit/ loss (Account changes resulting from price movements on the positions held)
• Realised profit/ loss resulting from closing positions (money earned or lost from the difference between the price at which a security was bought, and the price at which the security was sold)
• Costs related to trading activities (transaction costs, broker commissions and spreads)
• Corporate actions that increase or decrease the quantity or value of a position held

Position Bookings

The realised position profit/ loss only takes into account the sum of security-related cash movements (realised activities), over a specified period of time. This includes:

• Transaction costs such as the cost to buy or sell a security and its related costs (e.g. commissions, stamp duty paid, exchange fees) and
• Corporate actions related cash movements (e.g. cash dividends, withholding tax)

Total P/L is the end-of-period Account Value adjusted for the beginning-of-period Account Value and changes resulting from cash and security transfers.  Adjusting for cash and security transfers allows for an analysis of P/L without factoring in capital inflows and outflows that can inflate or deflate the P/L observed in a given period e.g. large cash deposits to the Account or losses reflected from security withdrawals. Total P/L is measured for a specific period, such as from the beginning of the year to yesterday's end-of-day and is calculated as:

The figures in the screenshot below are used to illustrate how Total P/L is calculated.

Total P/L calculation:

The position bookings take into account the sum of security-related cash movements, over a specified period of time. This includes transaction costs such as the cost to buy or sell a security and its related costs (e.g. commissions, stamp duty paid, exchange fees) and corporate actions and their related costs (e.g. cash dividends, withholding tax).

The position bookings have an impact on Total Cash Movements and the Cash.

The Portfolio View provides an overview of the value each position contributes to the total value of positions in an Account. The value of a position represents the exposure or percentage of the total value of positions invested in a specific position. Therefore, absolute exposure can be measured:

• In comparison to the total value of positions
• In comparison to the previous day's absolute exposure

When absolute exposure is assessed in comparison to the total value of positions, it gives an indication of the weight of a position in relation to the total exposure or value of positions. The screenshot below shows absolute exposure and percentage absolute exposure. Absolute exposure is the dollar amount invested in a position. While percentage absolute exposure is the dollar amount invested in a position, in relation to the total value of positions. Adient Plc has a weight of or contributes 2.51% to the total value of positions. This can be used to determine which product carries the most weight or risk in an Account.

When position exposure is assessed in comparison to the previous day's absolute exposure, it informs on the changes in position value. The percentage day change shows whether the value of a position has increased or decreased in value, relative to the previous day's value for the same position. Adient Plc has fallen in value by 1.02% in comparison to the previous day's position value.

While the 1 Day Change measures the change in the Account Value. That is to say the value of the Account today relative to the previous day's Account Value.

Note, however, that the Value of Positions and 1 Day Change are real-time values. To view absolute exposure and percentage absolute exposure in real-time requires a price subscription.

The Percentage Day Change for a Position is the current absolute exposure/ position value, relative to the previous day's end-of-day absolute exposure/ position value, taking into account closing costs.

Cost To Close

The percentage day change in absolute exposure/ position value includes the cost to close positions. These costs are not incorporated in the historical position value from the previous day. To calculate the 1-day change, the costs to close are subtracted from the current position value. Examples of costs to close are commissions, exchange fees, stamp duty etc. and include:

• Actual costs incurred in closing a position  
• Estimated costs associated with closing a position, were an open position to close at the current market prices

The costs to close for a selected position can be viewed in Position Details:

Percentage Day Change

The percentage day change is then calculated as the change in position exposure/ value (the difference between the current position exposure/ value and the previous day's position exposure/ value), adjusted for the closing costs. Market prices affect the position exposure, therefore the figures shown on G&T Trader are real-time values, with a 15-minute delay on price changes.

The percentage day change can be viewed in the Portfolio Overview.

Note, however, that the Value of Positions and therefore, the 1 Day Change are real-time values, but to view percentage day changes in real-time requires a price subscription.

The Portfolio View shows the current real-time Account Value. It includes security price movements, security transfers, other bookings, and foreign exchange currency movements on securities denominated in another currency other than Account Currency.

Using the figures in the screenshot above, the Account Value is the sum of Cash and Value of Positions.

The Cash is adjusted by transactions not booked, and the Value of Positions is adjusted by the P/L of margin positions and the cost to close:

The absolute exposure is the amount currently invested in a particular position and represents the amount that an investor could potentially lose on that investment. Absolute exposure is, therefore, the risk that a position carries in an Account. The position risk is equal to the value of that position. Therefore, exposure takes into account the holding amount and market price to calculate the current absolute exposure. Analysing absolute exposure enables an investor to manage the amount of risk/ exposure of each position, by reducing absolute exposure in some positions and increasing absolute exposure in other positions to balance risk.

Non-Margined Products

For bonds, the accumulated accrued interest that has not yet been realised is included in calculating the bond position exposure. Where Client Currency is different from the Account Currency, the foreign exchange rate is factored into the exposure amount, to determine the exposure in Client Currency. Galt & Taggart uses this method for measuring exposure for the following product types:

• Bonds
• Shares
• Mutual Funds
• Equity Premium Style ETOs
• FX Options

Assume a DKK Account holds a bond XYZ position of 60, with a current market price of USD 100, and where the market exchange rate USD/DKK is 1 USD = DKK 6, then the absolute exposure of bond position XYZ is calculated as:

Margined Products

For margin products such as FX, CFDs, Futures and Future Premium Style ETOs, the exposure takes into account the holding amount at a rate of the difference between the close and entry price. Galt & Taggart measures the closing value of open positions in margined products by the gross unrealised profit and loss of the open position at close.

Where Client Currency is different from the Account Currency, the foreign exchange rate is factored into the exposure amount, to determine the exposure in Client Currency. Exposure for margin products is calculated as:

Absolute Exposure Percentage

The position exposure can be measured in relation to the total exposure, which is the total value of positions. It informs what percentage of the total value of positions is invested in a specific position. To measure what percentage of the total value of positions is invested in a position XYZ equity, where the value of XYZ holding is EUR 11 500 and the total exposure/ value of positions is EUR 590 000:

The sum of the Absolute Exposure of all positions in an Account is the Value of Positions. Note, however, that the Value of Positions is a real-time value. To view absolute exposure, on position level,  in real-time requires a price subscription.

The composition of an Account or aggregated accounts can be broken down, to assess the risk each individual Position carries in the Account. This is done by determining the Position Value of each position in the Account – the absolute exposure. The absolute exposure is the amount currently invested in a particular position and represents the amount that an investor could potentially lose on that investment. Market price movements affect the level of exposure, therefore Value of Positions figures shown on G&T Trader, are real-time values.

Value of Positions

The total absolute exposure of the Account is then the sum of the absolute exposure/ sum of all instrument position values in the Account. It is  calculated as:

The net value of cash and security transfers are calculated for a given investment period, and include:

• Cash transfers between Accounts: If a cash transfer requires a currency exchange, e.g. transfer of cash from a USD Account to a EUR Account,  Galt & Taggart applies the closing USD/EUR currency price; on the day of transfer
• Security transfers between Accounts: A security is transferred at its market closing price; on the day of the transfer

Cash inflows and security deposit transfers to the Account are added to the Account Value, while cash outflows and security withdrawal transfers from the Account are deducted from the Account Value.

Cash transfers also affect the Cash amount, where cash withdrawals are subtracted from the Cash amount and cash deposits are added to the Cash amount.

Cash and security transfers are calculated as:

See how cash and security transfers affect the Account Value and how cash transfers affect Cash.

The Total Cash Movements are the sum of cash movements within a given investment period, excluding cash balance currency movements. The Total Cash Movements are thus affected by:

• Position Bookings
• Other Bookings
• Cash Transfers

Whereas, cash balance currency movements are not actual cash inflows or outflows. They result from a client having a default/ Client Currency that is different from an Account Currency. Any changes in cash balance currency movements are the result of foreign exchange movements between the Client Currency and the Account Currency rather than actual cash inflows or outflows. Total Cash Movements are calculated as:

The screenshot below shows an example of Total Cash Movements on an Account: 

Using the figures shown in the screenshot above, the Total Cash Movements are calculated as:

Assuming a client with two Accounts, one in DKK and another in EUR, and that the client's default/ Client Currency is DKK. The cash holding associated with the EUR account is, therefore, a foreign currency cash holding. When making an analysis of the aggregated accounts (the two Accounts combined), the values are presented in the Client Currency, which is DKK in this case.

Foreign currency cash holdings (the EUR Account) are affected by foreign exchange movements when valued in the Client Currency (DKK). This means that when converting the EUR Account to the Client Currency which is DKK, the foreign exchange rate movements affect the value of the EUR Account when converted to DKK. The value of the EUR Account could either decrease or increase in value when the exchange rate moves upwards or downwards. The cash balance currency movements include:

• Changes in the rate of exchange between client currency (DKK in this example) and the cash holding currency (EUR in this example)
• Adjustments associated with currency movements

For example, changes in the conversion of EUR/DKK will result in a currency movement. Thus a cash holding of EUR 50,000 will be affected by a EUR/DKK move from EUR 1 = DKK 7 to EUR 1 = DKK 6 (given the client currency is quoted in DKK).

Before the currency change, the EUR account quoted in DKK is =

After the currency change, the EUR account quoted in DKK is =

The cash balance currency movement on the cash holding is DKK 350 000 - DKK 300 000 = DKK 50 000. The total Cash Balance Currency Movements are calculated as:

The screenshot below shows the cash balance currency movements on an Account:

And using the figures above, the cash balance currency movements can be calculated as:

See how the cash balance currency movements affect the Account Value.

Below is an example of a Cash Summary. It shows the summary of the Cash for the period, Year-to-date. The year-to-date period refers to the period from the beginning of the year, to the previous day's end-of-day Cash.

The bar chart presents a breakdown of all cash movements, by Booking type.

The Cash Summary above is used to show an example of how to determine the current Cash amount:

Below is an example of an Account Value summary. 

The Account Value is calculated by adjusting the beginning-of-period Account Value to determine the current Account Value. Adjustments affecting the Account Value include e.g. Realised P/L, Cash Transfers etc. The Account Value summary displays the previous day's end-of-day Account Value and not the current Account Value. 

The Account Value shown on G&T Trader, can be viewed for a specified period e.g. Year-to-date, last Month, last Year or customised dates. The value of the Account is calculated as:

Thus using the figures in the Account Value summary above, the Account Value is shown as:

Other Bookings affect the Account Value and are costs which are unrelated to securities. Other bookings, therefore, include interest payments, fees for price subscriptions, service fees and accruals. 

 See how 'Other Bookings' affect the Account Value.

The 1 Day Change is derived from the real-time Account Value, relative to the previous day's end-of-day  Account Value, taking into account closing costs.

Cost To Close

The real-time Account Value includes the cost to close positions, however, these costs are not incorporated in the historical Account Value from the previous day. To calculate the 1-day change, the Account Value is adjusted for the costs to close - such as commission, exchange fees, stamp duty etc. These closing costs include:

• Actual costs incurred in closing a position  
• Estimated costs associated with closing a position, were an open position to close at current market prices

The costs to close for a selected position. can be viewed in Position Details:

And the sum of the costs to close can be viewed in Account Details:

The costs to close are calculated as:

1 Day Change

The 1-day change is then calculated as the change in Account Value (the difference between the current day's Account Value and the previous day's Account Value), adjusted for the closing costs:

To transfer funds from your private account to your joint account - or the other way around - you need to create a case with the subject Cash transaction enquiry. 

• ID and account number of the account where the funds should be transferred from
• ID and account number of the account where the funds should be transferred to 
• Cash amount (incl. currency)

Initial margin and maintenance margin are designed to protect you against adverse market conditions, by creating a buffer between your trading capacity and margin close-out level.

1. Initial margin: a pre-trade margin check on order placement, i.e. on opening a new position there must be sufficient margin collateral available on account to meet the initial margin requirement for the entire margin portfolio.
2. Maintenance margin: a continuous margin check, i.e. the minimum amount of cash or approved margin collateral that must be maintained on account to hold an open position(s). Maintenance margin is used to calculate the margin utilisation, and a close-out will occur as soon as you do not meet the maintenance margin requirement.

(For an introduction to this feature, also watch Understandig initial and maintenance margin)

How will initial and maintenance margin appear in the platform?

You can see the initial and maintenance margin available to open a new position(s), and the initial and maintenance margin reserved to maintain an existing open position(s), in various places within the platform. The Trade Ticket module displays the following information:

• Initial margin available: margin available to open new positions
• Initial margin impact: initial margin requirement to open the new position
• Maintenance margin impact: maintenance margin requirement to maintain the open position

The Account Summary module displays the following information:

• Initial margin reserved: aggregate initial margin requirement for all open positions in the account
• Initial margin available: margin available to open new positions
• Maintenance margin reserved: aggregate maintenance margin requirement for all open positions in the account
• Maintenance margin available: margin available for maintaining open positions, before close-out occurs at 100% maintenance margin utilisation

How will initial margin prevent trading up to 100% margin utilisation?

When you place a new order, existing open positions and orders are included in the calculation of the initial margin requirement.

Initial margin requirement = New order initial margin + Sum (initial margin orders) + Sum (initial margin portfolio)

Trading example:

You deposit USD 10,000 in your account. You decide to buy 100,000 USDJPY. You hold no other open position(s). 

Any further attempt to buy will be rejected since the initial margin available has been utilised.

How is maintenance margin utilisation calculated?

Maintenance margin utilisation is the percentage of margin collateral utilised for trading leveraged products. It is calculated as follows.

Maintenance margin utilisation = (100 x Maintenance margin reserved) / (Account value + Other collateral – Not available as margin collateral)

What is the 100% margin close-out level?

Automatic margin close-out will occur at 100% (maintenance) margin utilisation.

For example:

You deposit EUR 10,000 in your account. You decide to buy 100,000 EURUSD. You hold no other open position(s). 

Initial margin requirement = 100,000 x 1.50% = EUR 1,500

Maintenance margin requirement = 100,000 x 1.00% = EUR 1,000

Margin utilisation (at the time of the trade) = 10.0% (EUR 1,000/EUR 10,000)

Later due to market movements there is an unrealised loss on your account of EUR 9,000.

Margin utilisation = 100.0% (EUR 1,000/ (EUR 10,000 – EUR 9,000))

As a result, your margin is fully utilised and therefore you have no capacity to enter into further transactions (except to close out your open position(s)). You will be in breach of margin requirements and, to comply with the margin close-out rule, we shall seek to immediately terminate, cancel and close-out all or part of any outstanding position(s), as well as cancel any open orders.

• G&T Trader/Pro: Navigate to the question mark icon in the top right corner  > Contact support and click on "Create Support queries and see your historical support cases" > My tickets
• Mobile App G&T Trader: Navigate to Menu icon  > Support > Contact support and click on "Create Support queries and see your historical support cases" > My tickets

Time Weighted Return ("TWR")

To calculate the return in percentage, Galt & Taggart  applies the standard industry-wide recognized TWR methodology.

Galt & Taggart calculates the TWR as the compounded return of the daily returns, over the respective period being evaluated, e.g. 1 year.  

Absolute Return 

To calculate the absolute return, we evaluate the Account Value (t+1) vs. Account Value (t), and adjust for any account funding and/or account withdrawals. 

Why could there potentially be a conflict between Absolute Return and TWR? 

It is important to notice that TWR does not take into consideration the size of the portfolio, when the sub-returns (daily returns) are calculated.

If sub-periods with low account value yield very high positive returns and sub-periods with high account values yield slightly negative returns, you could end up with a high positive TWR for the total period. However, the total Absolute Return might be negative and vice versa.

To illustrative this, please refer to the example below. Note, in this example the TWR is positive (+33%), while the Absolute Return is negative (-300). 

It is possible to monitor FX Exposures in G&T TraderPRO.

FX Exposures is a module which streams your single currency exposures.

To launch the module in G&T TraderPRO click ADD MODULE > FX Exposures.

Single currency exposures are shown in Currency, Account Currency and Currency (USD).

The module also displays the following exposure limit and exposure utilization data:

Exposure Limit: The configured exposure limit in the currency

Exposure Utilization: The exposure in each currency divided by the exposure limit, in %

The data in the module is exportable in Excel, just right-click > Export.

Value Dated FX Exposures

FX Exposures are also available in a value dated layout. Launch Value Dated Exposures from module FX Exposures.

When approaching the expiry of a Contract Options (CO) that has a Stock as the underlying, and the option is In-The-Money (ITM) or reasonably close to be ITM, our risk system will start to calculate the cost of acquiring the underlying stocks, and reserve cash accordingly.

More specifically, 2 hours before expiry, our risk system starts reserving more and more cash, minute-for-minute. This is to ensure you have the cash required to acquire the underlying Stocks at the strike price at the time of expiry.

The cash the risk system reserves, will be shown as Initial Margin Requirement and Maintenance Margin Requirement - hence you might experience a spike in your Margin Utilization around expiry. Do note however, only stock options that expire the same date may be stopped out due to the increase. The rest of the portfolio is not stopped out due to this.

At expiry - this means:

• If the Contract Option is In-The-Money AND the you have sufficient cash to buy the underlying stock, you will be assigned on the Contract Option to buy at the strike price.
• If the Contract Option is In-The-Money AND the you do NOT have sufficient Cash to buy the underlying stock, Galt & Taggart will close-out your Contract Option position before expiry.

More details

You can at any point in time find more details on your specific Contract Option position in the report "Closeout Report".

G&T Trader: Navigate to Account > Other > Closeout Report  
G&T TraderPRO: Navigate to ADD MODULE > Other > Closeout Report

The Account Details page shows key information about your account, such as:

Cash and positions

Using below example:

10.16 %  ≈ ((- 6,000.00) / (83,672.06 - 24,592.88)) * 100

First-In-First-Out (FIFO)

When NETTING the open positions, Galt & Taggart uses FIFO rules, which means the first position you open is the first position to be closed.

How do I see if there are any related orders on my square position?

The following icon is indicating, that position has a related order: .

In below example (picture 1) USDJPY is marked as Square, but it has a Stop order at 111.26 on a Short position. In order to have USDJPY long and short positions net out and removed, you need to cancel the order, by going to Orders section (picture 2).

Picture 1

Picture 2

How do I see, if positions were opened from different accounts?

Account number is visible in Positions list. If you do not have it displayed, please enable, by going to Settings for editing a layout  in the right corner.

In below example Facebook CFD positions were opened from different accounts. A long position is opened from TRIAL_2211568 and a short position is opened from TRIAL_2211568U. In order to net out two opposite positions, it must be allocated to the same account.

The account value shield acts as a stop loss on your entire account value. It enables you to protect capital by specifying a pre-defined stop-out level, which, if triggered, will close all your open positions (except bonds and mutual funds holdings) and cancel all orders.  

If the account shield is triggered and cancels pending orders, you will need to contact us if you would like them to be filled.

Fund withdrawals with account value shield enabled

Please be aware that we will adjust the amount of cash you can withdraw, so that removing funds does not trigger the shield. Inter-account transfers (movements of cash between subaccounts) will also be limited. If you wish to increase the amount you can withdraw, you will need to disable or change the shield value first.

You can enable the account value shield on G&T Trader, G&T TraderPRO and via our mobile app.

How to enable the account value shield on G&T Trader
You can enable the account value shield at the bottom of the account summary page (see below).

How to enable the account value shield on G&T TraderPRO
You can enable the account value shield by going to ADD MODULE > Account Summary’ (see below).

MiFID Risk Warning is only shown for Retail classified clients and if a client has one or more complex products that he/she is not appropriate for.

How to remove a Risk Warning

It is not possible to remove a Risk Warning, but it is possible to avoid it appearance on every login if you do the following:

1. Disable "Not Appropriate" products, you are not trading.

MiFID Risk Warning is only shown for products, enabled on a trading platform (see under Settings > Trading Products ).

For example: If you are "Appropriate" for Forex Spot and you only trade Forex Spot, you can disable other products and will not see a risk warning on the next login. Please be aware, that if you disable other products, you will not see them on the trading platform.

2. Retake appropriateness test

If you have one or more complex products that you are not appropriate for, all questions regardless of complexity will be shown in the appropriateness test questionnaire in the trading platform.

To retake an appropriateness test, go to Account > Other > Mifid status > Appropriateness test.

If, based on your answers, products are deemed appropriate, risk warning disappears.

On a regular basis, Galt & Taggart will ask you to update and verify your information. When that happens you will get access to a renewal form in our trading platform.

G&T Trader: Account > Other > Renew personal details

G&T TraderPRO: ADD MODULE > Other > Renew personal details

G&T Trader Mobile App: Setting  >Renew personal details

This article intends to help you fill some of the sections, we believe, might require some additional clarification. 

1. Secondary nationality
   • If you have a secondary nationality, please fill this section too. 
   • Type of ID: Is it a passport, driving license or national ID?
   • Personal ID: Passport, driving license or national ID number.
2. Secondary Tax Residence
   • If you are tax liable in a country different than your country of residence, please fill this section too.
   • TIN: tax identification number
3. Employment details - Occupation details
   • Select at least one employment or occupation type you had in the last 12 months
4. Annual income
   • Primary income after tax: salary, pension, unemployment compensation, student grant, ...
   • Secondary income after tax (if applicable): Dividends, royalties
5. Sources of wealth
   • Value of cash and securities: Approximate value of all savings and investments excluding properties
   • Intended to deposit with Galt & Taggart: In addition to your current holdings

You can find all your relevant reports and summaries by:

• G&T Trader: Clicking Account > Historic reports
• G&T TraderPRO: Selecting ADD MODULE > Historic reports

Please be aware that Historic reports are not available on G&T Trader mobile App.

In case of client death, we kindly request the Administrator/Executor of the deceased’s estate to contact Galt & Taggart.

As a minimum, we request the Administrator/Executor to provide us with the information/documentation below: 

• A certified true copy of the Death Certificate.
• A certified true copy of the Grant of Probate / Letters of Administration (if available), conclusively evidencing that the Administrator/Executor is authorized to act in such capacity.
• Administrator/Executor’s full name.
• Administrator/Executor’s contact details.
• Certified true copies of the Administrator/Executor’s identification details and documents, such as Passport or Identification Card.

The list above is not exhaustive. Additional documentation may be requested, depending on the specific case. 

Once Galt & Taggart has received sufficient documentation, it will be reviewed. Galt & Taggart may perform a callback to the Administrator/Executor to conduct identity verification. Once approved, Galt & Taggart will only take instructions from the Administrator/Executor on actions to be taken relating to the funds / open positions on the deceased client’s account (subject to compliance with Galt & Taggart’s internal policies), and we will proceed to close the respective Galt & Taggart account.

Unfortunately, it is not possible for an account holder to appoint a trustee/nominee in advance.

Corporate Actions - Fractions: Fraction compensation received from a corporate action, for example in a dividend option or stock split.

All customers can request a subaccount in another currency. To request a sub account, please submit a ticket on a trading platform.

• G&T Trader:  Account > Other > Contact support > Submit ticket > Sub-account request 
• G&T TraderPRO:  > Contact support > Create support queries... > Submit ticket > Sub-account request 
• G&T Trader (mobile App): Menu > Support  > Contact Support >Submit ticket > Sub-account request 

What is Account Level Margin?

Account Level Margin is a client account feature that offers flexibility in terms of use of collateral and margin to clients with multiple subaccounts.  Whenever a client opts to have multiple subaccounts under their Galt & Taggart ID, it is possible to enable Account Level Margin.  The client’s margin utilization can be calculated on a single or a group of subaccounts rather than at the global client level. Consequently, any margin call or margin stop-out can also be issued and executed on a single subaccount or group of subaccounts.

At the time of setup, the client can choose how the margin calculation should be grouped on the different subaccounts. Here are 4 examples of how a client with 5 subaccounts could potentially be set up:

If we examine the second example, “Single margin calculations”, then as a result of Account Level Margin, the visible margin requirement will be the one shown under the individual subaccounts.  Hence, accumulated margin utilization on the client level will not be visible on the platform when “All accounts” is selected in the account bar of G&T Trader:

However, staying with the second example, when a single subaccount is selected, the margin information related to that subaccount is displayed:

If we move on to examples 3 and 4, the subaccount group margin is now enabled, so now the Account selector will indicate that Account Group Margin and the Account Margin functionalities are active:

As in the above example, margin information will be available on the Account Group, and the EUR, AUD and HKD  subaccounts, belonging to the same subaccount group, are cross collateralized and margined together. In this case, it is possible to see the margin utilization on an Account Group basis, but not individual subaccount basis:

Margin utilization on the Account Group level:

The AUD account is part of the cross-margined Account Group, so no margin information:

The CHF account is individually margined, and therefore displays margin information:

What are the benefits? 

Clients that opt for a subaccount structure will have the flexibility of managing their total engagement with Galt & Taggart under a single User ID:

• Clients only have to remember one User ID/Password. 
• Clients will easily have the ability to switch between the subaccounts for trading, without logging out and in.
• Clients have flexibility in terms of how the subaccounts are coupled and margined.
• Clients can see their margin utilization separately on each subaccount or group of subaccounts.
• Performance reporting (Account Value / % return) information is available on single account level, account group level or client level via G&T Trader.

How does the margin stop-out work?

As a rule, margin calls and margin stop-outs will only affect the respective subaccount or subaccount group(s), without affecting other subaccounts or subaccount group(s). However, there may be exceptions, such as in the case where a subaccount or subaccount group(s) is/are in negative equity. See the Guidelines and Disclaimer section.

Enabling and disabling of Account Level Margin

A client should request to enable Account Level Margin via the account manager.  It is the client’s responsibly that all subaccounts fulfill the margin requirements before enabling the account level margin functionality. Disabling or changing the Account Level Margin functionality can also be requested via the account manager. Clients cannot expect changes to take immediate effect and have to be aware that processing time for desired changes to take effect has to be taken into account.

Guidelines and Disclaimer

General terms and conditions for subaccount/group margin are available on the application form. Here are a couple of common questions around Galt & Taggart’s practices on multiple subaccounts: 

Subaccounts or subaccount group(s) in negative equity: 

If any subaccount falls into negative equity, Galt & Taggart reserves the right to transfer funds from one of the other subaccounts in the structure to cover for the deficit. Such transfer could cause one or more of the subaccounts to be subject to stop-out. There may also be costs associated with such transfers, for example conversion fees if funds in different currencies are transferred.  It is the client’s responsibility to maintain positive balances and fulfil margin requirements on all individual subaccounts as well as on an aggregate level.  Galt & Taggart will monitor the client’s risk exposures and balances on a counterpart basis, and reserves the right to proceed with actions to manage the client’s aggregated risk towards Galt & Taggart not limited on a subaccount basis.

Changing margin/subaccount setup:

Changes are requested in the same manner as for a new subaccount setup.  That means a new application form must be signed and submitted.  Please note that such request will take time to implement and Galt & Taggart cannot be held responsible for close-outs/losses occurring as a result of elapsed time during the change process.

To view the open positions details such as opening date, value date, position ID, conversion, P/L you can either follow the steps below or simply right-click on the position line and select Position Details. Please note, that position ID is not shown with real-time netting enabled, as it only shows a net position.

• G&T Trader: under Trading, go to Positions, click the (i) icon at the end of the position line.
• G&T TraderPRO: under Trading go to Positions, right-click on the position line and select Position details.

Closed positions details are available in Trades report under Historical Reports section the next day after position get closed.