MySmartFx

Trading Rules
(Last accurate as at 29thOctober 2013)

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Products Offered
The products that we are offering (buy or sell) are as follows:
¾ Forex

PRODUCT PRODUCT PRODUCT

AUDUSD. USDJPY. EURGBP.
EURUSD. AUDJPY. EURJPY.
GBPUSD. AUDNZD. GBPAUD
NZDUSD. CHFJPY. GBPCHF.
USDCAD. EURAUD. GBPJPY.
USDCHF. EURCAD. NZDJPY.

¾ Precious Metals (XAUUSD. and XAGUSD.)

¾ Energy
• NYMEX Light Sweet Crude Oil
9 Futures (OIL-LSxxF)
Contract that has an expiry date in the underlying contract month.
At the end of trading hours on the expiry date (on the third business day prior to the
25th calendar day of the month preceding the delivery month) all the open positions of
underlying contract must be cleared. Failure to do so will cause “Market On Close”
(MOC) will be done to clear the open positions of underlying contract which is the
MOC price is taken from the closing price (bid price for a long position, and the ask
price for a short position).
9 Continuous (OIL-LS)
Contract that doesn’t have an expiry date, but there will be done an automatic roll
over for all open positions in the underlying contract month.
• NYMEX - Henry Hub Natural Gas
9 Futures (NatGASxxF)
The contract that has an expiry date in the underlying contract month.
At the end of trading hours on the expiry date (on the third business day prior to the
first day of the delivery month) all the open positions of underlying contract must be
cleared. Failure to do so will cause “Market On Close” (MOC) will be done to clear
the open positions of underlying contract which is the MOC price is taken from the
closing price (bid price for a long position, and the ask price for a short position).
9 Continuous (NatGAS)
The contract that doesn’t have an expiry date, but there will be done an automatic roll
over for all open positions in the underlying contract month.

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¾ Index Futures
• Asian Index
9 Futures (NKxxF, HKxxF, and KSxxF)
The contract that has an expiry date in the underlying contract month.
At the end of trading hours on the expiry date, all the open positions of underlying
contract must be cleared. Failure to do so will cause “Market On Close” (MOC) will
be done to clear the open positions of underlying contract which is the MOC price is
taken from the closing price. For NKxxF, MOC will be done at the end of 1st session.
For Example:
Client Z has an open position Buy 1 lot of HK03F at 20060. The closing price of the
underlying contract is 20050; MOC will be shown as below:
Buy 1 lot HK03F at price 20060 will be closed with Sell 1 lot HK03F at price
20050 (Closing of the underlying contract).
9 Continuous (NKA, KSA, and HKA)
The contract that doesn’t have an expiry date, but there will be done an automatic roll
over for all open positions in the underlying contract month (Reference Month).
• US Index (DJ-I, NQ-I, and SP-I)
Reference Month will be held after 21:15 GMT (SUMMER) / 22:15 GMT
(WINTER) on the second business day before the third Friday of the contract’s
month. If the mentioned day is not a business day, then the Reference Month will be
referred to the previous business day.
• European Index (FTSEA and DAXA)
¾ Stock CFDs
• US Stock CFDs
• Hong Kong Stock CFDs
• Japan Stock CFDs

Trading Hours
¾ Forex
• Start from Sunday at 22:00 GMT until Friday at 20:30 GMT (SUMMER)
• Start from Sunday at 22:00 GMT until Friday at 21:30 GMT (WINTER)
¾ Precious Metals
• Start from Sunday at 22:00 GMT until Friday at 20:00 GMT with a 1 hour break time
each day between 21:00 GMT to 22:00 GMT (SUMMER)
• Start from Sunday at 23:00 GMT until Friday at 21:00 GMT with a 1 hour break time
each day between 22:00 GMT to 23:00 GMT (WINTER)

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¾ Energy (NYMEX Light Sweet Crude Oil and NYMEX - Henry Hub Natural Gas)
• Sunday to Friday = 22:00 GMT to 21:15 GMT (SUMMER)
• Sunday to Friday = 23:00 GMT to 22:15 GMT (WINTER)
¾ Index Futures
• Asian Index
9 Nikkei 225 (NKxxF and NKA)
Sunday to Friday = 23:45 GMT to 06:25 GMT (SESSION I)
07:15 GMT to 18:00 GMT (SESSION II)

9 HangSeng 43 (HKxxF and HKA)

Monday to Friday = 01:15 GMT to 04:00 GMT (SESSION I)
05:00 GMT to 08:15 GMT (SESSION II)
09:00 GMT to 17:00 GMT (SESSION III)
9 Kospi 200 (KSxxF and KSA)
Monday to Friday = 00:00 GMT to 06:05 GMT
• US Index Dow Jones (DJ-I) Mini NASDAQ (NQ-I) and Mini S&P 500 (SP-I)
9 Start from Sunday at 22:00 GMT until Friday 21:15 GMT with a break time each day
between 20:15 GMT to 20:30 GMT and 21:15 GMT to 22:00 GMT (SUMMER)
9 Start from Sunday at 23:00 GMT until Friday 22:15 GMT with a break time each day
between 21:15 GMT to 21:30 GMT and 22:15 GMT to 23:00 GMT (WINTER)
• European Index
9 FTSE100 (FTSEA)
- Start from Sunday at 00:00 GMT until Friday 20:00 GMT with a break time each
day between 06:50 GMT to 07:00 GMT (SUMMER)
- Start from Sunday at 01:00 GMT until Friday 21:00 GMT with a break time each
day between 07:50 GMT to 08:00 GMT (WINTER)
9 DAX30 (DAXA)
Monday to Friday = 06:00 GMT to 20:00 GMT (SUMMER)
9 07:00 GMT to 21:00 GMT (WINTER)
¾ Stock CFDs
• US Stock CFDs
Monday to Friday = 13:30 GMT to 20:00 GMT (SUMMER)
14:30 GMT to 21:00 GMT (WINTER)
• Hong Kong stock CFDs
Monday to Friday = 01:30 GMT to 04:00 GMT (SESSION I)
05:00 GMT to 08:00 GMT (SESSION II)
• Japan stock CFDs
Monday to Friday = 00:00 GMT to 02:00 GMT (SESSION I)
03:30 GMT to 06:00 GMT (SESSION II)
The time displayed on the platform is GMT +2.

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Contract Size
¾ Forex = 10,000 of the contract / Lot.
¾ Precious Metals
• Gold (XAUUSD.) = 10 troy ounces / Lot.
• Silver (XAGUSD.) = 500 troy ounces / Lot.
¾ Energy
• NYMEX Light Sweet Crude Oil (OIL-LSxxF & OIL-LS) = 100 barrels / Lot.
• NYMEX - Henry Hub Natural Gas (NatGASxxF & NatGAS) = 1,000 mmBtu / Lot.
¾ Index Futures
• Asian Index
9 Nikkei 225 (NKxxF and NKA) = US $ 0.5 x Index / Lot.
9 HangSeng 43 (HKxxF and HKA) = US $ 0.5 x Index / Lot.
9 Kospi 200 (KSxxF and KSA) = US $ 50 x Index / Lot.
• US Index
9 Dow Jones (DJ-I) = US $ 0.5 x Index / Lot.
9 Mini NASDAQ (NQ-I) = US $ 2 x Index / Lot.
9 Mini S&P 500 (SP-I) = US $ 5 x Index / Lot.
• European Index
9 FTSE100 (FTSEA) = £ 1 x Index / Lot.
9 DAX30 (DAXA) = € 2.5 x Index / Lot.
¾ Stock CFDs
• US Stock CFDs = 1,000 shares.
• Hong Kong Stock CFDs = 10,000 shares.
• Japan Stock CFDs = 1,000 shares.

Closing Price
The Daily Confirmation is based on the closing price, which was last displayed on the platform.
The closing price that shown on the daily confirmation is the bid price for a long position, and
the ask price for a short position.
End of Day Time for SUMMER is 20:30 GMT and 21:30 GMT for WINTER.

High-Low Price
The Day-High is based on the HIGH BID price, the Day-Low is based on the LOW BID price.

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Margin Requirement
¾ Forex
• Major and Cross Currencies (except EURGBP.) = US $ 25 / Lot.
• EURGBP. = US $ 37.5 / Lot.
¾ Precious Metals
• Gold (XAUUSD.) = US $ 50 / Lot.
• Silver (XAGUSD.) = US $ 100 / Lot.
¾ Energy
• NYMEX Light Sweet Crude Oil (OIL-LSxxF and OIL-LS) = US 50 / Lot.
• NYMEX - Henry Hub Natural Gas (NatGASxxF and NatGAS) = US $ 50 / Lot.
¾ Index Futures
• Asian Index
9 Nikkei 225 (NKxxF and NKA) is US $ 100 / Lot.
9 HangSeng 43 (HKxxF and HKA) and Kospi 200 (KSxxF and KSA) is US $ 125 / Lot.
• US Index
9 Dow Jones (DJ-I) and Mini S&P 500 (SP-I) are US $ 100 / Lot.
9 Mini NASDAQ (NQ-I) is US $ 75 / Lot.
• European Index
9 FTSE100 (FTSEA) is US $ 200 / Lot.
9 DAX30 (DAXA) is US $ 400 / Lot.
¾ Stock CFDs
A margin of 5% is required for the total Open Face value of trades (long or short) unless
explicitly stated otherwise
At the end of the trading session, if the equity goes equal to 100%of the margin required, the
Automatic Liquidation will be done.

Minimum & Maximum Trading Size

¾ Forex, Precious Metals, Energy, and Index Futures
• Standard Account
The Minimum Trading Size for every transaction is 1 Lot and the increment is 1 Lot.
• Smart Account
The Minimum Trading Size for every transaction is 1 Lot and the increment is 1 Lot.
¾ Stock CFDs
Please refer to the List of Companies Document.

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¾ Forex, Precious Metals, Energy, and Index Futures
• Standard Account
The Maximum Trading Size for every transaction is 100 Lots.
• Smart Account
The Maximum Trading Size for every transaction is 200 Lots.
Except for HangSeng Index session III, The Maximum Trading Size is 50 Lots.
¾ Stock CFDs
• Standard Account
9 US stock CFDs
Maximum exposure for any one instrument per client is US $ 500,000.
9 Hong Kong stock CFDs
Maximum exposure for any one instrument per client is HK $ 2,500,000.
9 Japan stock CFDs
Maximum exposure for any one instrument per client is ¥ 25,000,000.
• Smart Account
9 US stock CFDs
Maximum exposure for any one instrument per client is US $ 1,000,000.
9 Hong Kong stock CFDs
Maximum exposure for any one instrument per client is HK $ 5,000,000.
9 Japan stock CFDs
Maximum exposure for any one instrument per client is ¥ 50,000,000.
A client who opens a position worth over than the maximum trade size, will have their
position forcibly closed and will incur spread for that particular instrument as a penalty.
For example:
• Standard Account
1) A client with a margin deposit of US $ 28,000 has sufficient margin to trade worth
US $ 560,000. However, only US $ 500,000 trade size is allowed for any one
instrument. If he/she chooses to trade INTEL at US $ 20.00, he can trade only 25 lots
of it. If he/she buys 25.55 lots INTEL at US $ 20.00 (Face value: US $ 511,000), 0.55
lots of his positions will be forcibly closed at 19.98. Hence he will incur the
instrument spread as a loss.
2) You have a margin deposit with the amount is US $ 17,500 hence you can trade worth
± HK $ 2,712,500. However, only HK $ 2,500,000 trade size is allowed for any one
instrument. If you choose to trade LIFUNG-HK with the price HK $ 40.00, you can
trade only 6.25 lots. But if you buy 6.75 lots of LIFUNG_HK at HK $ 40.00, 0.5 lots
of your positions will be forcibly closed at HK $ 39.90. Hence you will incur the
underlying spread as a loss.
• Smart Account
1) A client with a margin deposit of US $ 100,000 has sufficient margin to trade worth
US $ 2,000,000. However, only US $ 1,000,000 trade size is allowed for any one
instrument. If he chooses to trade APPLE at US $ 225.00, he can trade only 4.4 lots
of it. If he/she buys 4.5 lots APPLE at US $ 225.00 (Face value: US $ 1,012,500), 0.1

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 lots of his positions will be forcibly closed at US $ 224.80. Hence he will incur the
instrument spread as a loss.
2) You have a margin deposit with the amount is US $ 50,000 hence you can trade worth
± HK $ 7,750,000. However, only HK $ 5,000,000 trade size is allowed for any one
instrument. If you choose to trade HKE-HK with the price HK $ 130.50, you can
trade only 3.8 lots. But if you buy 4 lots of HKE-HK at HK $ 130.50, 0.2 lots of your
positions will be forcibly closed at HK $ 130.30. Hence you will incur the underlying
spread as a loss.

Bid / Ask Spread

PRODUCT SPREAD PRODUCT SPREAD

AUDUSD. Real Time Market XAUUSD. Real Time Market
EURUSD. Real Time Market XAGUSD. Real Time Market
GBPUSD. Real Time Market OIL-LSxxF 0.05 Points (Normal Market)
NZDUSD. Real Time Market OIL-LS 0.05 Points (Normal Market)
USDCAD. Real Time Market NatGASxxF 0.005 Points (Normal Market)
USDCHF. Real Time Market NatGAS 0.005 Points (Normal Market)
USDJPY. Real Time Market DJ-I 5 Points (Normal Market)
AUDJPY. Real Time Market NQ-I 1.00 Point (Normal Market)
AUDNZD. Real Time Market SP-I 0.50 Points (Normal Market)
CHFJPY. Real Time Market NKxxF 5 Points (Normal Market)
EURAUD. Real Time Market NKA 5 Points (Normal Market)
EURCAD. Real Time Market HKxxF 5 Points (Normal Market)
EURCHF. Real Time Market HKA 5 Points (Normal Market)
EURGBP. Real Time Market KSxxF 0.05 Points (Normal Market)
EURJPY. Real Time Market KSA 0.05 Points (Normal Market)
GBPAUD. Real Time Market FTSEA 2.5 Points (Normal Market)
GBPCHF. Real Time Market DAXA 2.5 Points (Normal Market)
GBPJPY. Real Time Market Stock CFDs Refer to the List of Companies
NZDJPY. Real Time Market
NOTE: MySmartFx reserves the right to, in the case of volatile market conditions, widen the
bid/ask spread for Precious Metals, Index Futures and Stock CFDs.

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Commission
¾ Forex, Precious Metals, and Energy = No Commission Charged.
¾ Asian Index
• Nikkei 225 (NKxxF and NKA) = 1 Point / Lot / Side.
• HangSeng 43 (HKxxF and HKA) = 1 Point / Lot / Side.
• Kospi 200 (KSxxF and KSA) = 0.01 Points / Lot / Side.

¾ US Index
• Dow Jones (DJ-I) = 1 Point / Lot / Side.
• Mini NASDAQ (NQ-I) = 0.25 Points / Lot / Side.
• Mini S&P 500 (SP-I) = 0.125 Points / Lot / Side.
¾ European Index
• FTSE (FTSEA) = No Commission Charged.
• DAX (DAXA) = No Commission Charged.
¾ Stock CFDs (US/Hong Kong/Japan Stock CFDs)
The Commission is 0.3% of face value of opening trade. Commission is charged for both
sides of the transaction at the point on opening the initial transaction and would be converted
into USD using the rate at the particular time.
For example:
1) You sell 0.5 lots (500 shares) of Citigroup at price US $ 3.58. The face value of this trade
is US $ 1,790. Hence you are charged US $ 5.37 (0.3% of US $ 1,790) upfront. Upon
closing this trade you will not be charged any further commission.
2) You buy 0.05 lots (500 shares) of CLIFE-HK at HK $ 36.10. The face value for this trade
is HK $ 18,050. Assume on that particular moment US $ 1 = HK $ 7.75, hence you will
be charged approximately US $ 6.99 {(0.3% of HK $ 18,050)/USDHKD} upfront and you
will not be charged any further commission when you have squared the position.

Interest Rates
¾ Forex and Precious Metals
Open positions for Forex and Precious Metals where pass the end of the day’s trading will
incur the interest rate which is subject to change depending on the fluctuation of the key
interest rates of the underlying countries and will be issued every Monday.
The calculation of Interest Rate is 3 times as other normal day on Wednesday only.
¾ Stock CFDs
Financing charges are based on the closing face value of the outstanding open positions and
not on the share traded.

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• US Stock CFDs
Long (Buy) CFD positions held past the end of the day's trading incur overnight
financing charge on the closing face value. The amount charged is a markup of 3% over
the current LIBOR rate.
Short (Sell) CFD positions enable the position to receive interest amounting to 3%
markdown from current LIBOR rate on the closing face value. If LIBOR is below 3%,
the holder of a short CFD position will pay financing charge.
For example:
1) US LIBOR rate is currently at 3.5% and you buy 0.1 lots (100 shares) of AIGROUP
at US $ 35.00. You intend to keep this position for a night. Assume that AIGROUP
closes at US $ 35.50. Your closing face value is US $ 3,550 (35.50 x 100 shares).

Hence you must pay 6.5% (LIBOR + 3%) of the closing face value (US $ 3,550).
The amount charged for that day is as follows:
= (-6.5% / 360) x US $ 3,550
= - US $ 0.64
2) You sell 0.2 lots (200 shares) of HEWLETT at US $ 51.46. Assume that HEWLETT
closes at US $ 51.90. Your closing face value is US $ 10,380 (51.90 x 200 shares). US
LIBOR rate currently at 3.5%, hence you receive 0.5% (LIBOR - 3% markdown) of
the closing face value (US $ 10,380).
The amount received for that day is as follows:
= (0.5% / 360) x US $ 10,380
= US $ 0.14
• Hong Kong Stock CFDs
Long CFD positions held past the end of the day's trading incur overnight financing
charge on the closing face value. The amount charged is a markup of 3% over the
current HIBOR rate.
Short CFD positions enable the position to receive interest amounting to 3% markdown
from current HIBOR rate on the closing face value. If HIBOR is below 3%, the holder of
a short CFD position will pay financing charge.
For example:
1) Hong Kong Interbank Offered Rate (HIBOR) for this week is currently at 0.05% and
you buy 0.07 lots (700 shares) of LIFUNG-HK at HK $ 39.60. You intend to keep this
position for a night. LIFUNG-HK closes at HK $ 39.85. Your closing face value is
HK $ 39.85 x 700 shares = HK $ 27,895. Hence you must pay 3.05% (Current
HIBOR + 3%) of the closing face value (HK $ 27,895).
The amount charged for that day approximately is as follows:
= (-3.05% / 360) x HK $ 27,895
= - HK $ 2.36
= - US $ 0.30 (Assuming US $ 1 = HK $ 7.75)
2) You sell 0.3 lots CNOOC-HK at HK $ 12.68. Let’s assume that CNOOC-HK closes at
HK $ 12.58. HIBOR for this week is currently at 0.05%, hence you must pay 2.95%
(HIBOR – 3% markdown) of the closing face value (HK $ 37,740).

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 The amount charged for that day approximately is as follows:
= (-2.95% / 360) x HK $ 37,740
= - HK $ 3.09
= - US $ 0.40 (Assuming US $ 1 = HK $ 7.75)
• Japan Stock CFDs
Long CFD positions held past the end of the day's trading incur overnight financing
charge on the closing face value. The amount charged is a markup of 3% over the
current TIBOR rate.
Short CFD positions enable the position to receive interest amounting to 3% markdown
from current TIBOR rate on the closing face value. If TIBOR is below 3%, the holder of
a short CFD position will pay financing charge.

For example:
Tokyo Interbank Offered Rate (TIBOR) currently at 0.19%
1) You buy 0.2 lots (200 shares) of KONICA-JP. at ¥ 910 and intend to keep the position
for a night. Let’s assume that KONICA-JP closes at ¥ 901, so your closing face value
is ¥ 901 x 200 shares = ¥ 180,200. Hence you must pay 3.19% (Current TIBOR +
3%) of the closing face value (¥ 180,200).
The amount charged for that day approximately is as follows:
= (-3.19% / 360) x ¥ 180,200
= - ¥ 15.97
= - US $ 0.17 (Assuming US $ 1 = ¥ 92.00)
2) You sell 0.05 lots (50 shares) of SONY-JP at ¥ 2,155. Assume that SONY-JP closes at
¥ 2,205 and you intend to keep that position for a night. Your closing face value is ¥
110,250 (¥ 2,205 x 50 shares), hence you must pay the overnight charges as big as
2.81% (TIBOR – 3% markdown) of the closing face value (¥ 110,250).
The amount charged for that day approximately is as follows:
= (-2.81% / 360) x ¥ 110,250
= - ¥ 8.61
= - US $ 0.09 (Assuming US $ 1 = ¥ 92.00)

Limit / Stop Orders

Limit/Stop Orders must be placed a certain distance from the current price. This distance is
specified in the Trading Facts document.
Every Limit/Stop Orders can only be placed during market open hours.
Every Limit/Stop Orders for Energy, Index Futures and Stock CFDs are only valid until session
close upon which they are all purged.
Good Till Cancel (GTC) is valid for Limit Orders for Forex, Precious Metals.
Good Till Friday (GTF) is valid for Stop Orders for Forex, Precious Metals.

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¾ Limit Orders are considered DONE if the price on the platform has been reached or passed,
depending on the Sell or Buy position respectively.
For example:
Running EURUSD. is 1.50501 / 1.50531 Day High 1.50501
• LO Sell 1.50501 or below ………………………… DONE
• LO Sell 1.50502 or above …………………… ……NOT DONE
Running EURUSD. is 1.49504 / 1.49534 Day Low 1.49504
• LO Buy 1.49534 or above …………………… ……DONE
• LO Buy 1.49533 or below ………………………… NOT DONE
NOTE: The Executed price is according to the price placed by the client.

¾ Stop Orders are considered DONE if the price on the platform has been reached, depending
on the Sell or Buy position respectively. For Forex and Precious Metals, if the price on the
platform has passed the price placed by the client, the executed price is according to the first
tick after passing the underlying price placed by the client, depending on the Sell or Buy
position respectively.
For example:
The Client place a Stop Buy of EURCHF. at 1.48655
The price of EURCHF. has changed from 1.48505 / 1.48555 to 1.48755 / 1.48805, so the
price that will be executed is 1.48805
NOTE: The Executed price is according to the tick price movement.
When a transaction takes place based on a WRONG QUOTATION, MySmartFx has the right
to make a Correction/Revoke the transaction depending on the market price at that point.

Automatic Liquidation
MySmartFx reserves the right to automatically close out the client’s positions incurring a loss, in
the event that the margin deposit is not enough to cushion an adverse market move.
When the equity reached to 100% or below of the margin required, all open positions will be
automatically closed unless the underlying market is closed.
However in the case of a price gap causing equity to be below or equal to 0, all open position(s)
are automatically closed even though the underlying market is closed. An adjustment will be
proceeded to convert the equity back to zero if the liquidation causes a negative equity.
For Example:
1) Client with a deposit of US $ 500 buys 0.15 lots MORGAN at US $ 29.54. The commission
for that transaction is US $ 13.29 (0.3% x Open Face Value). Assume MORGAN closes at
US $ 32.35. On the next day when the HK market opens, client sells 0.05 lots of HUCTH-HK
at HK $ 56.70. The commission is US $ 10.97 {(0.3% x Open Face Value) / 7.75(Assuming
US $ 1 = HK $ 7.75)}. Upon HK market close, HUCTH-HK is trading at price HK $ 57.50.
When the US market opens, MORGAN gaps down to US $ 29.40. With the above conditions,
the MORGAN position will be automatically closed using the price at the particular time and

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 the HUTCH-HK position will still open even though the position incurred the largest loss
between all open positions.
2) Client with a deposit of US $ 500 buys 0.15 lots MORGAN at US $ 29.54. The commission
for that transaction is US $ 13.29 (0.3% x Open Face Value). Assume MORGAN closes at
US $ 31.20. On the next day when the HK market opens, client sells 0.08 lots of HUCTH-HK
at HK $ 56.70. The commission is US $ 17.56 {(0.3% x Open Face Value) / 7.75(Assuming
US $ 1 = HK $ 7.75)}. Upon HK market close, HUCTH-HK is trading at price HK $ 57.00.
When the US market opens, MORGAN gaps down to US $ 26.60. With the above conditions,
all positions will be automatically closed as the equity is less than 0. The client has now a
negative equity of approximately US $ 2.82 (excluding overnight financing charge).
MySmartFx will do an adjustment of this US $ 2.82 (as well as financing charges) in order to
convert the equity back to zero.

Automatic Rollover
¾ NYMEX Light Sweet Crude Oil (OIL-LS)
Automatic Roll Over will be done at the close of business on the fifth business day prior to
the 25th calendar day of the month preceding the delivery month. If the 25th calendar day of
the month is a non-business day, the automatic roll over shall cease on the fifth business day
prior to the business day preceding the 25th calendar day. In the event that the originally
listed roll over day is declared an exchange holiday, roll over will move to the business day
immediately prior.
For Example:
Client A has an open position Buy 1 lot of OIL-LS at 40.15, the New Balance is - US $ 20,
Floating US $ 220, Equity US $ 200 using the closing of underlying contract.
Client B has an open position Sell 1 lot of OIL-LS at 39.45, the New Balance is US $ 490,
Floating - US $ 290, Equity US $ 200 using the closing of underlying contract.
The closing of the underlying contract is 42.35 and the closing of the next contract 45.20, the
occur roll over will be shown as below:
Client A:
Sell 1 lot of OIL-LS at 42.35 will be closed with Buy 1 lot of OIL-LS at 45.20, the occur loss:
(42.35 - 45.20) x 100 x 1 Lot = - US $ 285
So the New Balance - US $ 305, Floating US $ 505, Equity US $ 200 by using the closing of
next contract and the original price will stay exist. (Roll over loss will be covered with the
addition of floating profit).
Client B:
Buy 1 lot of OIL-LS at 42.35 will be closed with Sell 1 lot of OIL-LS at 45.20, the occur
profit:
(45.20 - 42.35) x 100 x 1 Lot = US $ 285
So the New Balance US $ 775, Floating - US $ 575, Equity US $ 200 by using the closing of
next contract and the original price will stay exist (Roll over profit will be cover for the
addition of floating loss).
The original price will stay exist as long as there has not been liquidated by the customer.

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¾ NYMEX - Henry Hub Natural Gas (NatGAS)
Automatic Roll Over will be done at the close of business on the fifth business day prior to
the first day of the delivery month. In the event that the originally listed Roll Over day is
declared an exchange holiday, Roll Over will move to the business day immediately prior.
¾ Nikkei 225 Continuous (NKA) and Kospi 200 Continuous (KSA)
Automatic Roll Over will be done at the close of business on the second business day prior to
the second Thursday of the contract month, which is as follows: March, June, September, and
December.
For Example:
Assume that Client A has an open position Buy 1 lot of NKA at 15800 with the New Balance
is US $ 250, Floating - US $ 100, Equity US $ 150 using the closing of underlying contract.
Client B has an open position Sell 1 lot of NKA at 15700 with the New Balance is US $ 100,
Floating US $ 50, Equity US $ 150 using the closing of underlying contract.
The closing of the underlying contract is 15600 and the closing of the next contract 15625,
the occur roll over will be shown as below:
Client A:
Sell 1 lot NKA at 15600 will be closed with Buy 1 lot NKA at 15625, the occur loss:
(15600 - 15625) x US $ 0.5 x 1 Lot = - US $ 12.50
So the New Balance US $ 237.50, Floating - US $ 87.50, Equity US $ 150 by using the
closing of next contract and the original price will stay exist. (Roll over loss will be covered
with the addition of floating profit).
Client B:
Buy 1 lot NKA at 15600 will be closed with Sell 1 lot NKA at 15625 the occur profit:
(15625 - 15600) x US $ 0.5 x 1 Lot = US $ 12.50
So the New Balance US $ 112.50, Floating US $ 37.50, Equity US $ 150 by using the closing
of next contract and the original price will stay exist (Roll over profit will be cover for the
addition of floating loss).
The original price will stay exist as long as there has not been liquidated by the customer.
¾ HangSeng 43 Continuous (HKA)
Automatic Roll Over will be done at the close of business on the last three business day of
the contract month, which is every month.
For Example:
Assume that Client A has an open position Buy 1 lot of HKA at 22416 with the New Balance
is US $ 200, Floating - US $ 47, Equity US $ 153 using the closing of underlying contract.
Client B has an open position Sell 1 lot of HKA at 22376 with the New Balance is US $ 126,
Floating US $ 27, Equity US $ 153 using the closing of underlying contract.
The closing of the underlying contract is 22322 and the closing of the next contract 22072,
the occur roll over will be shown as below:
Client A:
Sell 1 lot HKA at 22322 will be closed with Buy 1 lot HKA at 22072, the occur profit:
(22322 - 22072) x US $ 0.5 x 1 Lot = US $ 125

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 So the New Balance US $ 325, Floating - US $ 172, Equity US $ 153 by using the closing of
next contract and the original price will stay exist. (Roll over profit will be cover for the
addition of floating loss).
Client B:
Buy 1 lot HKA at 22322 will be closed with Sell 1 lot HKA at 22072 the occur loss:
(22072 - 22322) x US $ 0.5 x 1 Lot = - US $ 125
So the New Balance US $ 1, Floating US $ 152, Equity US $ 153 by using the closing of next
contract and the original price will stay exist (Roll over loss will be covered with the addition
of floating profit).
The original price will stay exist as long as there has not been liquidated by the customer.

¾ US Index (DJ-I, NQ-I, and SP-I)

Automatic Roll Over will be done at the close of business on the second business day prior to
the third Friday of contract month which is as follows: March, June, September, and
December.
For Example:
Client A has an open position Buy 1 lot DJ-I at 10240 with the New Balance is US $ 70,
Floating US $ 80, Equity US $ 150 using the closing of underlying contract.
Client B has an open position Sell 1 lot DJ-I at 10170 with the New Balance is US $ 265,
Floating - US $ 115, Equity US $ 150 using the closing of underlying contract.
The closing of the underlying contract is 10400 and the closing of the next contract 10450 so
the occur roll over will be shown as below:
Client A:
Sell 1 lot DJ-I at 10400 will be closed with Buy 1 lot DJ-I at 10450 so the occur loss:
(10400 - 10450) x US $ 0.5 x 1 Lot = - US $ 25
So the New Balance US $ 45, Floating US $ 105, Equity US $ 150 by using the closing of
next contract and the original price will stay exist. (Roll over loss will be covered with the
addition of floating profit).
Client B:
Buy 1 lot DJ-I at 10400 will be closed with Sell 1 lot DJ-I at 10450, the occur profit:
(10450 - 10400) x US $ 0.5 x 1 Lot = US $ 25
So the New Balance US $ 290, Floating - US $ 140, Equity US $ 150 by using the closing of
next contract and the original price will stay exist (Roll over profit will be cover for the
addition of floating loss).
The original price will stay exist as long as there has not been liquidated by the customer.
¾ European Index (FTSEA and DAXA)
Automatic Roll Over will be done after the close of business on the seventh business day
prior to third Friday of contract month which is as follows: March, June, September, and
December.

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Dividend Adjustment for CFDs
Holders of long CFD positions will, when dividends are paid on the underlying share, qualify for
a proportional payout.
Holders of short CFD positions will have to pay an amount equal to the full (gross) dividend paid
on the underlying share.
To qualify for dividends receivable/payable, one must have the position open on the day before
the ex-dividend date until exchange close.
Cash dividends are booked on the end of the business hours of the dividend ex-date and would
be paid in the currency of the share. Cash dividends are converted into USD using the rate at the
end of the trading hours of the respective exchange.
For example:
1) Assume the ex-dividend date of MERCK is 11th March and dividend is paid quarterly. The
annual dividend paid is US $ 1.52 per share. Hence the quarterly dividend is US $ 0.38. If
you have open a position of MERCK before ex-date, and keep the position open throughout
the business day, you will qualify for any dividends paid or received on this share CFD.
If you are long MERCK, you will RECEIVE the dividend of US $ 0.38 per share into your
account. If you purchased 100 shares (0.1 lots), you will receive an amount of US $ 38 as a
cash adjustment into your account at the end of 11th March.
If you are short MERCK, you will PAY the full gross dividend of US $ 0.38 per share from
your account. If you had sold 100 shares (0.1 lots), you will be debited US $ 38 as a cash
adjustment from your account at the end of 11th March.
2) Assume the annual dividend of DAIKIN-JP is ¥ 32 per share and dividend is paid yearly.
Assume that the ex-dividend date is 29th March, so if you have an open CFD buy position of
DAIKIN-JP before ex-date, and keep the position open throughout the business day, you will
qualify for any dividends paid or received on this share CFD.
If you are long DAIKIN-JP, you will RECEIVE the dividend of ¥ 32 per share into your
account. If you had purchased 0.1 lots (100 shares), you will receive an amount of US $ 32
{¥ 3,200 / 100.00 (Assuming USD/JPY was trading at 100.00 upon TSE close)} as a cash
adjustment into your account at the end of 29th March.
If you are short DAIKIN-JP, you will PAY the full gross dividend of ¥ 32 per share from your
account. If you had sold 0.1 lots (100 shares), you will be debited an amount US $ 32 {¥
3,200 / 100.00 (Assuming USD/JPY was trading at 100.00 upon TSE close) as a cash
adjustment from your account at the end of 29th March.

Short-Selling CFDs
Most stock CFDs can be short sold. For a list of participating stocks, please refer to the List of
Companies document. When short selling CFDs, you can experience forced closure of a position
if your CFDs get recalled. The risk is particularly high if the stock becomes hard to borrow due
to takeovers, dividends, rights offerings (and other merger and acquisition activities) or increased
hedge fund selling of the stock.

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Adjustments for Corporate Actions (Such as rights issues)
A CFD holder is not allowed to vote in company resolutions etc. However any corporate actions
do affect holder of CFD positions. Examples of corporate actions include bonus issues, rights
issues, share buybacks, takeovers, and cash returns of capital.
In the event of any corporate action for a particular stock, MySmartFx shall endeavor to
communicate such an event as soon as reasonably possible. If the corporate action cannot be
replicated by MySmartFx, for any reason MySmartFx may close and re-open your CFD position
at a new price and/or vary terms of the orders and CFDs to preserve the equivalence of the rights
and obligations of both the parties immediately prior to a corporate action.
If the underlying exchange (NYSE/NASDAQ, HKSE, and TSE) purges/cancels any orders for
any particular instrument, the same is done for your orders by MySmartFx.
To be eligible for any corporate action, one must have the position open before ex-date for that
action.

Stock Splits and Reverse Stock Splits

Stock splits would be automatically reflected in the system, by a change in quantity and price.
For example:
Assume you have the following position:
Buy 0.1 lots (100 shares) of JPMORGAN at US $ 43.50 (Contract Value: US $ 4,350).
Soon after, the stock underwent a stock split in the ratio of 1:2. Hence your position would be
automatically be adjusted to the following:
Buy 0.2 lots (200 shares) of JPMORGAN at US $ 21.75 (Contract Value: US $ 4,350).
Hence the overall contract value is left unaffected. The reverse holds true for Reverse Stock
splits.

Stock Exchanges for CFDs

¾ US Stock CFDs
Currently offered is based on underlying stocks listed on both NASDAQ and NYSE.
¾ Hong Kong Stock CFDs
Currently offered is based on underlying stocks listed on HKSE.
¾ Japan Stock CFDs
Currently offered is based on underlying stocks listed on TSE.
For the latest current information on stocks offered, please refer to the List of Companies
document.

MySmartFx does not assume responsibility for any loss of LOGIN or password caused by clients’
negligence.

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