Glossary

3D Secure

3-D Secure is a protocol used as an additional security layer to ensure two-factor user authentication while using online credit and debit cards. This technology was developed for Visa payment system in order to secure Internet payments within Verified by Visa (VbV) payment service.

Multiple Document Interface

Multiple Document Interface is a way to organize a graphical user interface, assuming the usage of a window interface where most windows (excluding mostly modal windows) are located within one common window.

Orders Matching Engine (OME)

Orders Matching Engine is a trading core containing lists of bid and offer Limit orders sorted by price. OME task is to compare order conditions for incoming trading orders and if order rules are met – trade order should be triggered. Trading core processes only orders of Limit and Market types. During order analysis system takes into account order execution type and other rules of orders matching.

PCI DSS

Payment Card Industry Data Security Standard (PCI DSS) is a payment card industry data security standard developed by the Payment Card Industry Security Standards Council (PCI SSC). The standard is a set of twelve detailed requirements to ensure the security of data on the holders of payment cards, which are transmitted, stored and processed in the information infrastructures of organizations.

STP (Straight Through Process)

Straight through Process is a mode of supplying trading orders to an external trading platform via consolidated broker account. In this case broker acts as an intermediary between traders and the trading platform, consolidating their total position and portfolio of orders on the external marketplace.

Trailing Stop

Trailing Stop is an automatic shift of Stop order linked to a position following the price movement towards optimal direction. In case price movement shifts in the opposite direction – order does not change.

Alert

Alert is a condition tracked by trading terminal. If trading terminal spotted an event matching alert’s condition, actions related to this event are triggered. In Market Logic platform as actions can be considered either trading orders sent to server or auxiliary actions, such as sending messages via e-mail, displaying messages, playing sound files, etc.

Execution type

Execution type is an additional parameter indicated in trading order. This parameter indicates order validity, and the way order would be fulfilled.

User’s WEB Cabinet

User’s cabinet is a WEB application that provides basic functionality to work with platform, such as authentication, password change and recovery, as well as supply source for various information and reports referring to all users’ accounts. Personal user’s cabinet also enables user to apply for depositing and debiting funds to/from personal accounts, close positions and cancel already placed orders.

Marginal model

Marginal model is an algorithm used to calculate amount of money needed to cover the risks associated with the user’s trading orders.  For already formed overall position and portfolio of orders this algorithm in real time constantly calculates the necessary amount of funds reserved on the user’s trading account (maintenance margin). If amount of maintenance margin equals or exceeds the amount of funds on user’s trading account, the algorithm generates a Margin Call event. If additional funds are not deposited on trading account, system generates a Stop Out event whereby all current positions on the account are automatically closed fully or partially at market price depending on system settings.

When receiving a trade order from a user, the risk management module uses a margin model to calculate the initialization margin which is a value required to assess risks associated with an order. In case these risks exceed the available balance on trading account, the trading system rejects the order execution.

Market-maker

Market-maker is a trader on marketplace who generates sufficient liquidity volume to ensure work of the marketplace. Market-maker has the only type of the order available called Limit GTC. At the same time, it can place orders directly to the trading core bypassing the risk control module.

Master account

Master account is a special type of trading account which displays the account status on an external marketplace. Master account contains copies of all placed trading orders, as well as a consolidated position on an external account.

Dockable panels

This type of panels allows user to attach them to borders of the main application window or to connect them together in various ways, forming panel groups that can also be attached to the main window.

Payment system

Payment system is a business unit that provides transfer of funds and their digital equivalents between different users. Market Logic platform can interact with application interfaces of payment systems in automatic mode, using Payment Systems Bridges.

Liquidity provider

Liquidity provider is an external marketplace where trading orders are sent if Market Logic platform functions in STP Broker mode or the marketplace acts as a market-maker for Market Logic while operating in Exchange mode.

PreMarket mode

PreMarket is a trading platform operating mode used to protect liquidity of market-makers and other participants from aggressive trading at trading session opening time. Duration of PreMarket mode and its trigger conditions are determined by settings of trading core.

Risk account

Risk account is a special trading account, on which behalf market-makers operate in trading core.

Routing

Routing is an algorithm for sending trade orders set for a specific instrument on trading account. The routing settings can be changed while working with Market Logic BackOffice.

Position netting

Position netting is a process of accumulation of several open positions into one consolidated position. Unlike clearing procedure applied between trading accounts, position netting refers to trading positions on a single trading account.

Synthetic symbol

Synthetic symbol is a pair formed from already existing pairs by multiplying or dividing prices. Synthetic pair allows user to assess the exchange rate of a currency, index or product through an intermediate currency. Synthetic pairs are formed on client terminal, which compares components of already existing pairs and generates historical and online data, depending on the situation. Trading on synthetic pairs is not supported.

Margin Call

Margin Call takes place when margin applied to support open positions and orders portfolio and is calculated according to selected margin model, becomes equal to or exceeds the available balance on the trading account. In this case, it is necessary to deposit additional funds to the trading account to keep current portfolio of open positions and orders. Otherwise, system generates a Stop Out event, whereby the current open positions would be fully or partially closed at market price until an acceptable margin level is reached.

Stop Out

Stop Out event is an automatic positions’ closure in case when balance amount on trading account is not sufficient to keep positions open. Positions are being closed at current market prices. Positions’ closure can be in full or partial until balance on the trading account provides sufficient coverage to apply maintenance margin.

Insufficient Margin

Insufficient Margin event occurs when withheld margin value closely reaches the balance amount of funds kept on trading account. This event is intended to inform trader in advance that in case of position increase or if an unfavorable movement of market prices takes place, the existing funds may not be enough to cover such trades, hence leading to Margin Call event.

Spread

Spread is delta between the current best ask and bid price on a marketplace.

Trade order Market IOC

To execute trading orders of this type sufficient liquidity level in order book matching order price is expected. If liquidity volume is not enough for a complete execution, order execution the remaining volume would be rejected.

Trade order Market FOK

This trading orders’ type implies complete order execution for its whole volume. If total amount of liquidity matching the trading order is less than the order volume, then order would be rejected by the system.

Trade order Market AON

This order execution type implies that the whole trade order must be executed at the same price immideatelly. If order book lacks liquidity, the trade order would be rejected. Unlike Market FOK order, this type of execution does not allow execution when liquidity is provided at different prices.

Trade order Limit GTC

Trading orders of this type are valid until they are fully executed or cancelled. If at the moment of order placement in order book there is enough liquidity to match order execution at required price, the order would be executed within the limits of available liquidity. If amount of available liquidity is not enough for complete order execution, the remaining volume remains in order book. This remaining volume is pending until it can be executed or till it is cancelled.

Trade order Limit DO (Day Order)

Trading orders of this type are similar to Limit GTC orders, but their validity is limited to trading session. After trading session is closed, the trading order is being canceled by the system.

Trade order Limit IOC

To execute trading orders of this type sufficient liquidity level in order book matching order price is expected. If liquidity level by price is not enough for a complete execution, order execution the remaining volume would be rejected.

Trade order Limit FOK

This trading orders’ type implies complete order execution for its whole volume immideatelly. If total amount of liquidity matching the trading order at required price is less than the order volume, then order would be rejected by the system.

Trade order Limit AON

This order execution type implies that the whole trade order must be executed at the same price immideatelly. If order book lacks liquidity, the trade order would be rejected. Unlike Limit FOK order, this type of execution does not allow execution when liquidity is provided at different prices.

Trade order Stop GTC

Trading orders of this type are valid until they are fully executed or cancelled. If at the moment of order placement current market price is equal or worse to the orders’ price, the order is triggered as Market IOC order. If this order is executed partially, the system would place Market IOC orders of remaining size until the full volume is filled.

Trade order Stop DO (Day Order)

Trading orders of this type are similar to Stop GTC orders, but their validity is limited to trading session. After trading session is closed, the trading order is being canceled by the system.