Sorry we couldn’t find anything

clear

Clear Search

App store image
Google Play image

Sorry we couldn’t find anything

Trading Our Products

FX Forward margin*

*Please note, FX Forward margin will be available from 29 January 2020.

FX forward margin is a margin requirement on the interest rate risk inherent in FX forwards and FX swaps.

The interest rate margin requirement is applied in addition to the standard margin requirement applied to FX spot instruments on the notional exposure.

The calculation has the following characteristics:

  • Interest rate margin requirement is calculated per currency pair
  • The interest rate differential is shifted by 1% and then scaled by time to maturity
  • All currency pairs use the same shift of 1%
  • Netting across value dates in currency pair

Example, assuming:

  • 1M EURUSD forward with value date in 3 months.
  • Spot price = 1.1120

1M x 1.1120 x 3/12 x 1% = 2,700 USD 

2,700 USD is applied in addition to the standard margin requirement. Assuming that is 2% in EURUSD:

20,000 USD + 2,700 USD = 22,700 USD

The margin requirement is calculated in the 2nd currency, and then converted into the base currency of the account.

FX Swaps

Overview

The objective of trading an FX swap is to hedge exposure from currency risk, or to modify the value date of an open foreign exchange position.

An FX swap is a simultaneous purchase and sale, or vice versa, of one currency for another currency with two different value dates; two parties agree upon a currency exchange on one day and simultaneously agree to unwind or reverse that transaction on a specified date in the future. More specifically, an FX swap includes two legs. It is a combination of either a spot and a forward position, or two forward positions:

  1. In the first leg, a notional amount of currency is either bought or sold against another currency at a specified price on an initial date. The initial date is referred to as the near date.
  2. In the second leg, a notional amount of currency is then simultaneously bought or sold against the other currency at a specified price on a specified date in the future. The date in the future is referred to as the far date.

An FX swap effectively results in no, or very little, exposure to fluctuations in the prevailing spot rate, since although the first leg opens spot market risk, the second leg immediately offsets it. An FX swap is commonly used for hedging exposure from currency risk, or to modify (or “roll forward”) the value date of an open foreign exchange position.

Trading Example

Example 1: Hedging exposure from currency risk
A Swedish company is long EUR from sales in Europe but operates primarily in Sweden using SEK. The company needs to pay suppliers based in Germany, in EUR, in one month.

To mitigate the currency risk, the company enters into a one-month swap selling EUR and buying SEK at the spot price, while simultaneously buying EUR and selling SEK one month forward.

Example 2: Modify the value date of an open position
A trader has an open short (sell) EURUSD spot position. The trader would like to keep this position open for at least one month and does not want to roll the position forward each day.

To modify the value date, the trader enters a one-month swap buying EUR and selling USD at the spot price, while simultaneously selling EUR and buying USD one month forward.

Trading Conditions

Instruments Available for trading in 130+ currency pairs, including gold and silver.
Tenors/Maturity Tradable tenors from Spot (“T+2”) to 1 year.
Amount Available for up to 25,000,000 EUR. Uneven amounts on the near leg and the far leg are not supported.
Price Expressed in pip terms of the 2nd currency.
RFQ No RFQ
Spread Defined as the distance between the bid/ask swap price, which can vary depending on market liquidity and conditions.
P/L Can be followed in the account summary, listed in the 2nd currency (i.e. USD for EURUSD).
Margin FX spot margin requirement + Interest rate margin requirement.

For more information see "FX Forward Margin" above.
Orders Fill or Kill ("FOK") market order or limit order. Fill or Kill means that the order is filled in full immediately or rejected if it cannot be filled in the full amount. Partial fills are not supported.
Netting When the value date of an open forward outright position equals the current spot value date, it will be treated as a normal spot position. From that point on, positions held at the end of a trading day are rolled forward to the next available business day.
Opening Hours Open for trading 24/6

What does Fill or Kill order mean?

Galt & Taggart online trading for Bonds works with one order type: Fill or Kill (market) order.

Where market pricing may be outside of the indicative bid/offer price due to a lack of liquidity, orders may be routed to market as aggressive limit orders. This  will provide some protection from negative slippage but may introduce the risk that the order will not be filled if the market moves sharply.

Read more about Bonds Trading Conditions on our web page.

What can I trade with Galt & Taggart?

With a Galt & Taggart account you get access to a truly multi-asset platform with a wide choice of markets and instruments to trade on.

If you have an account, you can use the watchlist to find the product you are looking for.



If you don't have an account yet, visit https://galt.leavingstone.club/ and read more about our product offering, or contact us for more specific questions.


What is Lot Size?

The Lot Size represents the standardized number of a financial instrument as set out by the exchange.

When trading stocks, the lot size refers to the number of shares you buy in one transaction.

When trading Options/Futures, the Lot Size (contract size) refers to the total number of contracts contained in one derivative security. The Lot Size is determined by the stock exchange.

What is Tick Size?

Can I trade bitcoin or other cryptocurrencies with Galt & Taggart?

Galt & Taggart offers an access to two Exchange Traded Notes (ETNs) that track the movement of Bitcoin and Ethereum against the USD (BTC/USD and ETH/USD).

You can find ETNs by entering a symbol code or a name, please see below.

blobid3.png
blobid2.png

Why do I get the message "You have insufficient cash in the account to make this trade"?



There could be several reasons for receiving this message:

  1. The cash balance available in your account is too low. Please top up your funds or reduce the value of the trade.
  2. Pending Buy orders - when placing a Buy order, the system checks the cash balance available plus cash reserved for any pending Buy order(s). You can cancel the pending Buy order(s) and try to place your trade again.
  3. Market orders, placed while the market is closed might be rejected due to the fact, that the system will calculate an additional cash buffer that must be available in order to buy shares. Please place a Limit order instead in such case, as the limit price will provide a maximum purchase price.

Where do I see the minimum trade size?

From the Trade Ticket:

  1. Select the relevant instrument
  2. Click on the icon
  3. Select Instrument 
  4. Refer to Min. trade amount line

 

Example provided below


Why am I unable to short a CFD?

You can always see if a CFD is available for short selling in the trading conditions under Instrument.

Below you can see an example of an instrument that currently cannot be shorted:

2019-03-13_15-53-24.png

Note that the state of the instrument is not static and can change due to risk, availability of shares in the market, etc.

Why am I not able to trade certain ETFs?

Due to the Packaged Retail and Insurance-based Investment Products (PRIIPs) regulation that came into effect on 1. January 2018, which requires financial product “manufacturers” to produce Key Information Documents (KIDs). For each product they produce, they must disclose the key features of the product across risk, rewards and costs.

For a number of instruments, the manufacturer/issuer has chosen not to issue a KID. The effect is that Galt & Taggart will no longer be in a position to facilitate trading to Retail clients.

The following message will appear, if you place on order for mentioned instruments:

blobid0.png

You can check if an instrument has the required KIDs in the trading conditions under Trading rates >> Key Information Document.

mceclip0.png

If you wish to trade these ETFs you need to request a reclassification to professional client. To do so, please contact your account manager or email us at sales@gt.ge.

How can I place algorithmic orders?

With Galt & Taggart, you can place and manage algorithmic orders.

To place an algorithmic order you need to open a trade ticket >> select order type or click on the "Limit" label >> choose algo order type >> then pick the strategy type or click on "Dark" to invoke the available strategies dropdown >> adjust the relevant parameters and place the order.

Where can I see the trading hours for a particular exchange or instrument?

How do I manage futures orders and positions?

We uses FIFO (first in, first out) futures positions netting. This means futures trades must be closed in the order they were opened.

Individual trades in a position cannot be directly closed and you cannot place stop and limit orders to close specific trades.

Closing positions
To close or reduce a position, you can place a trade using either the Close button on the position, or by placing a trade using the Trade Ticket.

Related orders
Stop loss and take profit orders cannot be related directly to individual trades. OCO-related stop and limit orders can be placed instead to protect the net trade position. OCO-related stop and limit orders must be managed separately — if you manually close a position, you must also manually cancel any related orders.

One-Cancels -Other (OCO) orders for futures in G&T Trader
One-Cancels-Other (OCO) orders are available on futures in G&T Trader. This will allow you to protect net futures positions with OCO related Take Profit and Stop Loss orders.

Take Profit and Stop Loss orders can be placed at a fixed Price or at a percent distance from the current market price.

mceclip0.png

How to trade Stocks on G&T Trader?

Dowload our G&T Trader platform manual here.

Does Galt & Taggart offer a Financial Calendar?

Galt & Taggart offers a Financial Calendar to keep you up to date with upcoming economic data releases and events around the world.

The Financial Calendar is available in the platform, under the News and Research >> Calendar tab.

When are dividends in extra shares credited to my account?

Dividends paid in cash are credited to your account on pay date, however should you elect to receive extra shares, instead of cash, there may be a delay in the shares being credited to your Open Positions.

This is because Galt & Taggart must wait to receive the extra shares from our Custodian/Registrar before they can be credited to your account. The delay will depend upon the country in which the company is incorporated.

As an example, for extra shares issued by a UK listed company, a delay of approximately 20 days is standard before Galt & Taggart receives the shares.

Anatomy of an FX Quick Trade Ticket

FX and FX Option Margin Calculations

For a detailed explanation of how margin is calculated, go to https://trader.ge/investment-products/forex/margins-forex.

The article describes how the margin is calculated for a FX/FX option portfolio with Galt & Taggart.

How do I request an instrument to be added to the platform?

To request an instrument to be added to the platform, please contact your account manger or email us at sales@gt.ge with the subject Instrument request where you clearly indicate:

  • Instrument type (e.g. CFD, Stock)
  • Name of the company
  • ISIN Code
  • Exchange

We will then review your request and get back to you.

Can cash products be used as collateral for margin trading?

Galt & Taggart allows a percentage of the investment in certain Stocks, ETFs and Bonds to be used as collateral for margin trading activities. The collateral value of a stock, ETF or bond position depends on the rating of the individual stocks, ETFs or bonds.

You can find the collateral values for stocks here, the collateral values for ETFs here, and the collateral values for bonds here.

You can find the risk rating of an instrument in the Trading Conditions under Instrument.

What is a price tolerance?

Price Tolerance provides an effective way to mitigate risk of unexpected volatility.



A Limit IOC (Immediate-or-Cancel) order will only be executed if a price can be obtained within your pre-defined price range, with any potential price improvements being passed on to you. Price tolerance can be specified in pips or percent

  • When selling, Price Tolerance defines the minimum price differential that you are comfortable accepting. Price Tolerance is subtracted from the current Bid price, and is displayed as a limit price (Limit @ x.xxxxx) on the trade tile.
  • When buying, Price Tolerance defines the maximum price differential that you are comfortable accepting. Price Tolerance is added to the current Ask price, and is displayed as a limit price (Limit @ x.xxxxx) on the trade tile.

For FX Spot and FX Forwards, the default Price Tolerance is 0.01% of the Spot price for all currency pairs, but it is configurable on an individual currency pair level. Price Tolerance is expressed in pips or percentage points.

Price Tolerance can also be applied when trading CFD Indices, Commodities, Interest Rates and Bonds. Price Tolerance is expressed in ticks or percentage points.

As seen below, by removing Price Tolerance the trade tile will convert the order type from a Limit IOC order to a Market IOC order for FX Spot and FX Forwards, and a Resting Market order for all other product types.

What are the withholding taxes for dividends?

Dividend payments from stock positions will be credited to your account with any applicable standard withholding taxes deducted. These depend on the country where the stock is domiciled.

Withholding taxes or capital gains are left upon the individual clients to take care of and report in their respective country of residence.

Which types of FX Options does Galt & Taggart offer?

Galt & Taggart offers trading in two types of FX OTC options:

    1. FX Vanilla Options
    2. FX Touch Options (only for professional classified clients)

FX OTC options can be traded from the Trade ticket in the "Option" tab.

At Galt & Taggart Forex options (both Vanilla and Touch options) can be either bought or sold.

FX Vanilla Options
A Vanilla option is a derivative financial instrument that gives the buyer the right, but not the obligation, to either buy (Call) or sell (Put) a predefined notional amount of a currency cross at a pre-defined price (Strike price) at a predefined date in the future (Expiry date). The seller of the option has a corresponding obligation to fulfil the transaction should the buyer decide to exercise his right.

Please note that short positions in Vanilla options carry more risk than long positions as the potential loss is not limited. When holding a long position in an option, the potential loss is limited to the premium paid.

FX Touch Options
A Touch option is a type of exotic option that gives the buyer a pre-determined payout either once a spot price of a currency cross reaches or surpasses a predetermined barrier (Trigger price) – One Touch or if spot never reaches the trigger level before the expiry – No Touch. These types of options allow you to set the Trigger price, the time to expiration and the payout to be received.

Please note that short positions in options carry more risk than long positions as the potential loss could amount to the total payout, whereas in the case of a long position, the potential loss is limited to the premium paid.

Do futures CFDs expire and, if so, when?

Futures CFDs expire on the day the underlying future contract expires.

Individual expiration dates can be found in the platform’s trade ticket, watchlist and G&T Trader’s overview.

Anatomy of a CFD Quick Trade Ticket

Can I place IPO orders for a newly issued stock?

Galt & Taggart does not offer access to the IPO order book at this moment.

When are the dividends on a CFD position credited to my account?

Dividends on CFD positions are booked into your account on the Ex-date with value on Pay-Date. If you are eligible to receive dividends when holding a position in a CFD, Galt & Taggart will allocate cash to your account.

Please note that if you are holding a short position in the CFD, the amount will be deducted from your account.

You can find details of these movements in the CFD Cash Adjustments report under Account >> Historic Reports.

In which scenarios can my orders be cancelled by Galt & Taggart?

Open orders can be cancelled in the event of a stop out.

Related orders can be cancelled if the related position is closed as a result of another order.

An open order can also be cancelled in the event of a corporate action.

Corporate actions such as stock splits, reverse stock splits, bonus issues, mandatory mergers, spin offs, ticker changes and delistings will all result in existing trade orders being cancelled.

A corporate action, such as a cash dividend, stock dividend, optional dividend or rights issue, may result in an order cancellation if the change in price of the security exceeds 20% due to the Corporate action.

This applies to both related and standalone orders in single stocks, CFDs and Single Stock Options.

You can find additional information regarding various corporate actions here.

What does a Level 2 exchange subscription provide?

Level 2 or Market depth data gives you access to the same real-time market data as when subscribing to Level 1, but also includes real-time market depth – 5 best bid/ask in the market (stocks and DMA only).

You can subscribe to a level 2 exchange data feed via the trading platform by going to Account >> Other >> SubscriptionsSubscription fees are charged monthly and will be renewed automatically every month.

How is CFD financing calculated and when is it charged?

Due to the fact that CFDs at Galt & Taggart are margin products, you finance the traded value through an overnight credit/debit charge. If you open and close a CFD position within the same trading day, you are not subject to overnight financing. When you hold a CFD position overnight, your CFD position will consequently be subject to credit or debit.

Additional information about CFD Financing on Index Tracker CFDs and Single Stock CFDs and ETF/ETC CFDs can be found here.

Financing is charged on CFDs on single stocks and stock indices - but not on expiring CFDs (commodity and Forex CFDs, and some stock index CFDs).

The CFD financing is calculated daily and charged on a monthly basis.

Here is an example of calculating Single Stock CFD finance charge on a long position for 1 day.

CFD Finance calculated as follows:
CFD Finance = (Open Position Amount x Price x (Interest Rate + (Markup or Markdown))) / 100 x Number of days / quotation (in day convention)

CFD Finance Calculation details:
Banco BPM CFD position value (Picture 1): EUR 27,660.00 (1,500 x 18.44000)

Number of interest days: 1 day

The applied rate (including a markup/markdown): 3.50%

Quotation (in day convention): 360

Therefore the interest can be calculated as follows (Picture 2): (27,660.00 x 3.5%) / 360 = -2.69

Picture 1


To view historical CFD financing costs,  go to Historic Reports >> CFD Finance Details (see an example below).

Picture 2

Does Galt & Taggart offer live prices on stocks?

At Galt & Taggart all equities trade on actual market data from the stock exchanges. To receive and trade on real-time market data, clients must subscribe to the individual exchange.

A subscription to live price data from an exchange gives you access to live prices on Stocks, Single Stock CFDs, ETFs/ETCs and CFDs on ETFs/ETCs from the particular exchange.

Please see how to subscribe to Live Prices via the trading platform here under "How do I subscribe to live prices?".

Additional information regarding Exchange agreements and monthly subscription rates can be found here.

Getting started with G&T Select

In order to get access to G&T Select, please contact your account manager or email us at sales@gt.ge.

How can I short a stock?

Single stocks can be shorted as CFDs; cash stocks, however, cannot be shorted. Clients can place bearish bets on stocks by shorting CFDs.

A Contract for Difference (CFD) is a financial contract between a client and a CFD provider where the difference between the opening and closing prices of a position is cash settled upon closing of the position.

Please note that CFDs are a margin product. To find the trading conditions and margin requirements click the  on the trade ticket or instrument overview (G&T Trader).



Additional information regarding CFD trading can be found here

Does Galt & Taggart offer trading in Russian stocks?

Galt & Taggart does not offer trading in domestic Russian stocks, however clients can trade a wide range of ETFs and depository receipts tracking the performance of Russian companies and sectors.

How do I vote in voluntary corporate actions?

What is a stop limit order?

A stop limit order rests in the same way as a stop order. However, once triggered, rather than execute at the next available price it converts to a limit order at a pre-agreed limit price. From that point on, the order is treated as a limit order. This type of order gives the client some protection from a bad fill in a gapping or illiquid market. Trailing stop limit orders are not available.

Please note that not all exchanges and instruments support stop limit orders.

Here is an example of a stop limit order for Facebook CFD long position, opened at 142.550.

Last traded price 147.480 / 147.500.

Stop Loss level - 140.00

Stop Limit level - 135.00



If order gets triggered at 140.00, it would be executed within 140.00 - 135.00 range (stop limit level) but not worse than 135.00.

In other words, if market gaps below 135.00, the order would not be executed.

The risk in latest scenario is the following:

If market drops even more below 135.00 level and do not recover, client can lose more, in comparison to having normal stop loss order, where client at least get a fill and close his loosing position.

What are Forex Rollovers?

The FX Spot market is used for immediate currency trades. The term “Spot” refers to the standard settlement convention of two business days after the trade date (known as T+2)(1). For example, a EURUSD trade executed on a Monday will settle on a Wednesday (if there is not a public holiday in either currency on Tuesday or Wednesday, in which case the trade will be settled on the next available business day). The settlement period refers to the amount of time that is allotted to both parties to satisfy the trade’s obligations. At Galt & Taggart, FX Spot trades do not settle. Instead, open positions held at the end of a trading day (17.00 Eastern Standard Time) are rolled forward to the next available business day(2).

The rollover is made up of two components; the Tom/Next swap points (Forward Price) and the financing of unrealised profit/loss (Financing Interest).

  1. Tom/Next swap points (Forward Price): The swap points used are calculated using market swap prices from Tier-1 banks, plus/minus a mark-up corresponding to +/-0.45% of the Tom/Next interest swap rates. The final rate is used to adjust the opening price of the position(3).
  2. Financing of unrealised profit/loss (Financing Interest): Any unrealised profit/loss on positions that are rolled from one day to the next are subject to an interest credit or debit. The unrealised profit/loss is calculated as the difference between the opening price of a position (possibly corrected for previous Tom/Next rollovers) and the spot price at the time that the rollover is performed. The rate is calculated based on the daily market overnight interest rates plus/minus a mark-up corresponding to +/- 2.00%. The final rate is used to adjust the opening price of the position(3).

Rollover Procedure
Example: Buy 100,000 EURUSD Spot on Monday, Sell 100,000 EURUSD Spot on Tuesday.

Day Value Date Position Description
Mon Today (“T”) +100,000 ➢ Trade to buy 100,000 EURUSD T+2 at 12.00 GMT
Tue T+1 -100,000

➢ Trade to sell 100,000 EURUSD T+2 at 03.30 GMT

➢ Opening (buy) position rolled from T+2 to T+3 at 10.00 GMT*(4)

➢ Unrealised profit/loss available in MyAccount from 10.00 GMT*(5)

➢ EOD files available from 10.00 GMT*

Wed T+2   ➢ Realised profit/loss available in MyAccount from 00.00 GMT*

➢ Forex Rollover report available from 04.00 GMT*

*Round time to the nearest hour based on historical data.

Notes:
(1) The standard settlement convention of T+2 is applicable for the majority of currency pairs; however there are exceptions to this rule e.g. USDCAD, which has a settlement convention of one day after the trade date (T+1).
(2) The global market convention is that the value date rolls forward at 17.00 Eastern Standard Time, however there are exceptions to this rule e.g. NZD, which rolls forward at 07:00 New Zealand Daylight Time.
(3) Applicable to the default rollover methodology which is described in "Method 1: Normal Forward" below.
(4) From a Best Execution perspective, the market price for each currency is observed in the trading session with the best liquidity on average. This means that market prices in all currencies, except SGD, HKD, CNH, THB, are observed in the European session between 08:00 and 10:00 GMT. For SGD, HKD, CNH and THB, market prices are observed at 14:00 Hong Kong Time.
(5) The opening price of the position is adjusted by the Forward Price and Financing Interest, at which time unrealised profit/loss is available to view in myAccount.

Rollover Methodology for Galt & Taggart retail clients

Normal Forward (price adjustment to the opening price of a position)

Amount OpenRate SpotNow Forward Price Financing Interest New Rate
100,000 1.12212923 1.05586 0.000064 0.00000218 1.12219541

The rollover is applied by:

  • Adjusting the opening price of a position to include the Forward Price and Financing Interest components:
    • OpenRate + Forward Price + Financing Interest = New Rate
    • 1.12212923 + 0.000064 + 0.00000218 = 1.12219541
  • No closing rate and no closing position is generated for a swap executed using this method

Forex Rollovers Report
You can view the rollover history on your FX positions in the "Forex Rollovers" report under the Account >> Historic reports menu.

Each FX position is recorded in the Forex Rollovers report, which also displays the opening price, swap adjustment, value dates, resulting price and other relevant information.

Intraday FX positions are not subject to rollovers.

What is the CFD exposure limit?

The CFD exposure limit is a restriction on the size of a CFD position each individual client can maintain.

The trading platform will not allow clients to place orders that exceed the CFD limit if executed.

The exposure limit can be found in the trading platform under Account >> Other >> New Trading Conditions by looking up a particular CFD and going to the Instrument section.

Please see an example for the Apple CFD below.



The restriction is set by the Galt & Taggart risk management department and depends on factors such as CFD rating, stock liquidity, volatility and other market conditions.

In the event of a CFD exposure limit change, existing client positions will remain unaffected, however future trades and positions will be subject to the new exposure limits.

Are Stop orders triggered by the bid or ask price?

What is a CFD?

A CFD (Contract for Difference) is a derivative of a financial product and is used for trading. The CFD price behaves exactly like the underlying asset price.

There is no actual ownership of the underlying asset of reference. A CFD is therefore a derivative product where Galt & Taggart is a counterparty to the trade. Since the product is not exchange traded, it is said to be traded over-the-counter (OTC).

CFDs are traded on margin and can be sold short, making it possible to profit in falling markets or to hedge your Stock positions.

You can read more about CFDs here.

How do I set up Price Alerts?

How do I check Contract Option specifications?

Contract options trading and settlement conditions can be found in the Galt & Taggart platforms under the instrument's Trading Conditions. You can simply find the option, you are looking for and swap between Trading rates and Instrument tabs to see the details.

How to trade Stock Options on the Galt & Taggart platforms

As part of our multi-asset offering, Galt & Taggart provides stock options trading via its award winning G&T Trader and G&T TraderPro platforms.

Stock options are tradable from the Option Chain, watchlist and the trade ticket.

What is a limit order?

Limit orders are used to take profit or to enter the market at a certain price level. For further information, please refer to the trading conditions for a specific instrument.

You can place a limit order by selecting Limit in the Type field of the trade ticket.

Why do I not see all products on my platform?

If you cannot see all available products in the platform, these might need to be enabled.

Please first check if products are enabled, by going to Setting >> Trading Products.

In case, there is no required product group in the trading product list, please contact us to check your account set up.

Do you offer trading on the LSE AIM?

We do not offer trading on the LSE Alternative Investment Market.

Can I reuse the option premiums of bought FX options?

As long as you only hold bought FX Options no margin is required.

A part of the bought option premium can be reused for further margin trading. The part of the bought option premium that cannot be reused for margin trading is deducted under Not available as margin collateral.

In these cases, the Not available as margin collateral is the minimum of either:
  1. The margin requirement on the option (Delta-Vega margin for the long FXO position as it would have been applied if the bought FX option was part of a portfolio on Delta-Vega margining)
  2. The market value of the option​

Can I trade Bonds, not available online with Galt & Taggart?

Yes, Galt & Taggartsupports 33,000 bonds offline, so there is a good chance that it can be traded offline from our bond desk. Please contact us at sales@gt.ge enquire about the possibility of trading the specific bond offline. If so, it will be manually traded, but will still appear in the account summary of your account just like any other position.

How is custody fee for stocks, ETFs, ETCs and bonds calculated?

Custody fees on all stocks, ETFs, ETCs and bonds is 0.10% p.a. For more information please contuct us at sales@gt.ge.

! Please be aware, that custody fee is also calculated on NOCT (not on-line client tradable) and Delisted instruemnts.

The scope of this article is to help you understand how the fees are calculated and includes an example:

Daily Calculation formula:
(Number of shares * Closing Price) * (Custody Fee p.a. / Yearly day count)

Please note the yearly day count may differ for some currencies.

Calculation Example:
If you hold 1,000 shares in company XYZ Inc. and the closing price is EUR 25.00 the daily custody fee will be calculated as:

(1,000 x EUR 25.00) * (0.10%/360) = EUR 0.06944 per day

Monthly billing:
At the end of each month, the calculated daily custody fees during the month are added up and debited from the account that holds the position.

Is there a minimum fee?
There is no minimum Custody fee. the Custody fee is fixed at 0.10% p.a.

In which currency is the custody fee charged?
Custody fee will be calculated on the instrument currency daily using the end of day values. It will be converted to the account currency at zero conversion fees when booked monthly.

Is there any relation between custody fee amount and trading activities?
No, there is no relation between the custody fee and your trading activities.

If I buy stocks on the 5th day of a month with a value date of the 8th (assuming no weekend in between) and I keep the position for the whole month, for which period will the custody fee apply?
The custody fee is effective from the value date and not the trade date. Therefore the fee will be charged from the 8th until the end of the month.

Which account will be charged if I have sub accounts?
The custody fee is applied to the account where the position is held. If positions are held on both accounts, then both will be charged.

What is margin trading?

On Galt & Taggart platforms you are able to trade in various financial instruments, among these financial contracts such as FX Spot, FX Options, CFDs, Futures etc.

When you trade in such contracts, you are not buying an actual asset (as e.g. with stock trading) but you are entering into a contract. As you are not buying the actual asset but entering into a contract, you have the possibility of entering a contract of a higher nominal value than you are holding on the account.

This is what is known as leveraging, gearing or margin trading – the benefit is that profits on successful, leveraged trades can be greater than what would be achieved on non-leveraged trades.

It should be carefully noted that also the opposite is true: leverage can also increase the size of losses.

Trade would exceed margin limits

The trading platforms will not allow you to take trades that will bring your margin utilization above 100%.

In the Trade Ticket  you will have a margin preview available, which gives you an indication of how much Initial margin available do you have.

If Initial margin impact is higher than Initial margin available, your trade will be rejected.

Please, be aware, that initial margin is shown without taking in the account existing open orders. Existing open orders are only calculated in during a new order placement.

As you can see in the example below, Initial margin impact is USD 8,501.14 and it is significantly higher than Initial margin available of USD 2,633.40. As a result, the trade is rejected.

Please, reduce the size of your position and try again.

Trading with sub-accounts and segregated accounts (Account Level Margin)

Clients can request additional sub-accounts from galt & Taggart in any currency.

Examples of need for segregation:

Trading currencies
Establish sub-accounts for instrument currencies you commonly trade to eliminate paying conversion fees on each individual trade back to your account currency.

Portfolios
Sub-accounts are also commonly used to establish separate portfolios where you can monitor and track the performance–using the performance tools in the Account Overview of G&T Trader for example.

Segregated sub-accounts (Account Level Margin)
By default, sub-accounts share funds and margin so that you don’t need to hold funds on an account to open positions from that account. It is not possible to segregate sub-accounts for margin trading.

Notes about trading with sub-accounts
A few things to be aware of when trading from sub-accounts:
  • Whenever you trade you need to choose the specific sub-account you want to trade from – the platform does not automatically chose the most appropriate sub-account for you. However the platform will warn you if you try to place a trade on an account when a sub-account with a matching currency is available.
  • If you have two opposite positions in two separate sub-accounts, they will not net out at the end of the day.
  • When placing a trade, the platform takes into consideration the total funds and margin available to the sub-account, not only the assets available on the sub-account. Unless you have segregated sub-accounts, if you do not have enough funds you will still be allowed to place trades on a sub-account if free funds or margin are available in other accounts.
  • If you trade on a sub-account which has insufficient funds or margin, you may get a negative balance on the sub-account and will be charged interest on this negative balance. To avoid this, make sure you keep your sub-account balances positive.
  • You always need to maintain sufficient funds in your main account to cover your Net Free Equity requirements.
  • You can transfer funds between sub-accounts by contacting us at sales@gt.ge. The conversion rate will be the current exchange rate plus a conversion fee (the mid-spread FX Spot rate at the time of transfer, plus/minus 0.5%).
 

Account Opening is As Easy As 1, 2, 3

1

Open an Account

Request an account opening online via our website.

2

Fund

Add funds quickly and securely via bank transfers.

3

Trade

Access 35,000+ instruments across all asset classes.

1

Open an Account

Request an account opening online via our website.

2

Fund

Add funds quickly and securely via bank transfers.

3

Trade

Access 35,000+ instruments across all asset classes.