About Capitalor AB

Capitalor AB is incorporated in Sweden as a Private Limited Liability Company
It's Swedish Incorporation number is: 556734-1077
Registered office of the board of directors: Halmstad, Sweden
Capitalor AB is registered as a Financial Institution with the Swedish Financial Inspection
The reception of client funds is with our Client Funds Account at the Scandinavian bank, Swedbank

Capitalor AB was founded to meet with the growing demand in the Foreign Exchange market.
For the founder's vision for the company, see Word from Founder.

To familiarize yourself further with Capitalor, please see:

Trading Hours
The dealing room is open 24 hours a day from Sunday 23.00 CET Sunday all the way through Friday 23.00 CET.

- Spot Currencies
From Sunday at 23:00 CET to Friday at 23:00.

Currency Pairs
24-hour trading is available in 32 currency pairs: EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUDUSD, USDCAD, NZDUSD, EURJPY, EURGBP, EURCHF, EURCAD, EURAUD, GBPJPY, GBPCHF, GBPCAD, GBPAUD, CHFJPY, AUDCAD, AUDJPY, AUDNZD, AUDCHF, CADJPY, CADCHF, NZDCHF, NZDJPY, EURNZD, NZDCAD, GBPNZD, EURTRY, USDTRY, GBPTRY, TRYJPY.

Currency Denomination
Clients can choose to have their accounts denominated in either USD, EUR, GBP, JPY, CHF, AUD or CAD.

Dealing Spreads
Normal dealing spreads are 3-4 pips for the major currency pairs. See detailed list below.

*?) A lot is a predefined amount of a currency.

**?) This column shows in pips the minimum distance from the market that a client can place a limit or stop order.

***?) This column shows the maximum amount per single trade that a client can trade streamline on the online system. The client does have the possibility to trade even bigger amounts on the platform, but he/she will in that case have to request a quote, and depending on the market conditions, the spread may increase.

****?) These columns show the swap rates/interest rates, which are used to calculate the swaps.
A swap is the simultaneous closing of an open position for today's value date and the opening of the same position for the next day's value date at a price reflecting the interest rate differential between the two currencies.
You can read more about how the swap is calculated below here. Please notice that swaps may change from time to time according to the prevailing interest rates.

Please note that all spreads are targeted spreads. This means that in volatile market conditions and around important news announcements, the spreads may increase for some or all pairs.

Be aware that some spreads may increase during nights with low liquidity.

Please also note that for currency pairs involving the Turkish Lira (EURTRY, USDTRY, GBPTRY and TRYJPY), the mentioned spreads can only be guaranteed from 8:30 am till 5:30 pm CET under normal market conditions. Outside this time period the spreads for these currencies will be fluctuating.

Swaps
The rates featured in the list above are the interest rates that are used to calculate the swap for all overnight positions. In order to calculate the swap, the interest rate of the pair in question is multiplied by the pip value of the pair, by the number of lots and by the number of days the position is held. In short, swaps are calculated on the basis of the following formula:

swap rate (short % or long %) x pip value x number of lots x number of days

To calculate the swap, one must therefore know the swap/interest rate and the pip value in question. For some pairs the pip value is fixed, for others it fluctuates.

Swaps are applied at 23:00 CET. If you don't want swaps to apply to your positions you should close them before 23:00 CET. 

Indepth Explanation of Swaps
Clients have the opportunity to earn interest on swaps, depending on the direction of their positions and interest rate differential between the two currencies involved. For example, UK interest rates are significantly higher than Japan's, so if a trader is long GBP/JPY (i.e. holding British Pounds), they will earn interest on the swap. Conversely, if a trader is short GBP/JPY (i.e. holding yen) they will pay interest on the swap.
The spot forex market is traded on a two-day value date. For example, for trades executed on Monday, the value date is Wednesday. However, if a position is opened on Monday and held overnight (remains open after 23.00 CET), the value date is now Thursday. The exception is a position opened and held overnight on Wednesday. The normal value date would be Saturday; because banks are closed on Saturday the value date is actually the following Monday. Due to the weekend, positions held overnight on Wednesday incur or earn an extra two days of interest. Trades with a value date that falls on a holiday will also incur or earn additional interest.

Margin

• Mini Lots:
  You can trade Mini-lots with your Standard Account. Transaction size with 1 Mini Lot is 1/10th standard sized lot, or 10,000 of the base currency, with a minimum margin deposit of 0.5% (200:1 leverage). For example, a US$10,000 position would require an initial margin deposit of US$50.
• Standard Accounts:
  Minimum transaction size for standard accounts is 1 lot, or 100,000 of the base currency, with a minimum margin deposit of 0,5% (200:1 leverage). For example, a US$100,000 position would require an initial margin deposit of US$500. This differs depending on Account Equity, please see list below for detailed information concerning Margin requirements.
  
  

Explanation of above List
For accounts with equity below $1,000,000 there is no maintenance margin during the week; however, the margin level must be respected by Friday at 23:00 CET and before holidays. For accounts with amounts above $1,000,000, the required margin levels must be respected by the end of each weekday. Accounts that fail to meet the required margin levels at the above mentioned hours, must close all or part of their open positions, open a hedge position or deposit more money.

Margin requirements for Gold: the required margin for 1 lot of Gold (XAUUSD) for accounts with a leverage of 100:1 is $1,250 US. For accounts with a leverage of 200:1 the required margin is $625 US.

Margin requirements for Silver: the required margin for 1 lot of Silver (XAGUSD) for accounts with a leverage of 100:1 is $1,250 US. For accounts with a leverage of 200:1 the required margin is $625 US.

Margin Example:

USD Based Currency Pair:
Margin = (Contract size / Leverage)
You have $5000 in a standard account. To calculate the margin required to execute 1 lot of USD/JPY (100,000 USD) at 200x leverage, simply divide the deal size by the leverage amount e.g. (100,000 / 200 = 500). You post $500 margin for this trade, leaving a $4500 balance in your account.

Non-USD Based Currency Pair
Margin = [(Contract Size x Price) / Leverage]
In this example, you have $5,000 in a standard account. You want to execute 3 lots of EUR/USD (300,000 Euros) at the current market price of 1.2710 using 100x leverage. To calculate the required margin for this position, multiply the deal size (300,000) by the price (1.2710) and then divide by the leverage (100x), e.g. [(300,000*1.2710)/100] = $3,813. After you executed this trade, you would have a $1,187 balance in your account.

The trading platform automatically calculates margin requirements and checks available funds before allowing you to successfully enter a new position. If you do not have adequate funds available to enter a new position, you will receive an "insufficient margin funds" message when attempting to deal.
If the unrealized P&L of your net total open position falls below your account balance, your account is under margined and all your open positions may be liquidated. To avoid liquidation of your positions, do not use your entire account balance as margin for open positions. Instead, leave enough funds in your account to withstand a market movement against your open positions. We suggest you always use stop loss orders to limit your downside risk.
Please contact us if you wish at any time to use a lower degree of leverage or otherwise adjust the margin settings in your account.


Fees
Capitalor charges NO trading commissions or fees, regardless of account balance or trading activity. Capitalor is compensated for its services through the bid/ask spread.

Price Quotes
Clients have the ability to execute trades directly from real time streaming bid/ask quotes. Live prices are continuously published to clients via the trading platform, and traders can at any time click on the current bid or offer and instantaneously execute a trade. Prices are updated automatically as market conditions dictate.

Trading over the Internet
Executing a deal with us via the Internet is a simple two-step process. Simply enter the number of lots and then click on the bid (buy) or offer (sell) for the currency pair you wish to trade - your deal is automatically executed. The dealing software automatically calculates the initial margin requirement based upon the notional amount of the deal, and if sufficient funds are available in your account, will accept the transaction. Deals are confirmed online, normally within one second, and the system instantaneously updates both your open position and calculates your current P&L.

Order Types
The dealing platform provides sophisticated order entry and tracking. Orders may be entered at any rate - inside or outside the existing spread - using the following order types:

• Limit orders
  An order with restrictions on the maximum price to be paid or the minimum price to be received.
  
  If a trader is long USD/CHF at 1.4627, a limit order would be entered to sell dollars above that price, for example, at 1.4800.
• Stop Loss orders
  Order type whereby an open position is automatically liquidated at a specific price. Often used to minimize exposure to losses if the market moves against an investor's position.
  If the trader above is long USD at 1.4627, a stop loss order could be left at 1.4549, in case the dollar depreciates below 1.4549.
  
  Our dealingroom always tries to execute stop orders (sell stop, buy stop, stop loss) at the indicated price, however under certain market conditions known as market gaps, it may be impossible and you may be filled at a different price than initially requested. Our dealers always try to fill you at the best attainable price.
  
  
• One Cancels Other orders (OCO's)
  A contingent order providing that one part of the order is cancelled if the other part is executed. This is a particularly useful order type in that it allows traders to execute specific trading strategies based on technical analysis - without having to watch the market tick by tick.
  As above, with the trader long USD/CHF at 1.4627, a typical OCO order would be a stop loss at 1.4562 and a limit (take profit) at 1.4700. If one part of the order is filled, the other is automatically cancelled.
• If / Then Single
  A conditional order providing that if the first order ("If" order) is executed, the second order ("Then" order) is activated as a live, single order.
  In cases where the If order does not execute, the Then single order will remain dormant. When either part of an If / Then order is cancelled, all parts of the order are cancelled as well.
  An example of an If / Then single order would be to first place an 'If' limit order to buy EUR/USD at 1.0690, fifty points below the current market rate of 1.0740. The 'Then' part of the order would be a limit sell order to take profit at 1.0770 (eighty pips above the 'If' order execution rate of 1.0690). If the market dips to 1.0690 the 'If' order will execute and the 'Then' leg of the order will become active. Note: the 'Then' order could also have been a stop loss order at 1.0650 (forty pips below the execution rate of 1.0690).
• If /Then OCO
  A conditional order providing that if the first order ("If" order) is executed, the second order ("Then" order) is activated as a live, One Cancels Other (OCO) order. The execution of either one of the two 'Then' orders automatically cancels the other.
  
  In cases where the 'If' single order does not execute, the 'Then' OCO order will remain dormant. When any part of an If / Then OCO order is cancelled, including either leg of the OCO order, all parts of the order are cancelled as well.
  
  An example of an If / Then OCO order would be to first place an 'If' limit order to buy USD/JPY at 118.80, fifty points below the current market rate of 119.30. The 'Then' part of the order would be an OCO order: one leg of the OCO could be a limit sell order to take profit at 119.60, (eighty pips above the execution rate of 118.80) the other leg a stop loss order to sell at 118.50 (thirty points below the execution rate). If the market reaches 118.80, the 'If' single order is executed, and the 'Then' OCO order is activated. If activated, the execution of either leg of the 'Then' OCO order automatically cancels the other.

All of the above orders may be entered as Day Orders, entered today and good until end of business day. Or, clients may choose to enter a Good 'til Cancelled Order (GTC), which is valid until the order is executed or cancelled. Orders remain open until they are triggered or cancelled. If you close out a position manually, you must cancel any order(s) relating to that position.

Order Execution

• First In First Out (FIFO)
  Open positions are closed according to the FIFO accounting rule. All positions opened within a particular currency pair are liquidated in the order in which they were originally opened.
• Stop Loss Orders
  As a rule, sell stops are filled on our bid and buy stops are filled on our offer. This is an important point for traders who are accustomed to being filled on sell stops when the offer reaches the requested order rate. For example, if a stop order is placed to sell USD/CHF at 1.4549, the trader will be filled when the bid reaches 1.4549. In the rare instance the market gaps over a requested rate, a stop order is filled at the best available price.
• Limit Orders
  Sell limit orders are filled when the bid reaches the requested rate; limit orders to buy are filled on the offer. For example, a limit order to buy EUR/USD at 1.0456 will be filled when our offer hits 1.0456.
• Good Til Cancelled (GTC) Orders
  All GTC orders remain open until they are triggered or cancelled. If you close out a position manually, you must cancel any order(s) relating to that position.
• Orders left over the weekend or holidays
  Orders left pending at close of trading on Friday at 23.00 CET or placed over the weekend are subject to a gap open on Sunday when trading starts at 23.00 CET. For both stop loss and limit orders - if your order is triggered due to news, events or other fundamental factors, it will not be executed over the weekend. Your order WILL be executed at the prevailing price when the trading desk opens Sunday. Because of the additional gap risk involved, you may want to reconsider leaving open orders over the weekend or holidays.

Confirmations
Deals are confirmed on screen, typically within one second. Full transaction details may be accessed on screen as well, including date, time, rate, notional amount bought and sold, USD value, and reference number.

Reporting
The dealing software tracks all trading activity in real time, allowing clients to view current open positions, real-time profit and loss, margin availability, account balances, and all historical transaction details directly on-screen.

Account Statements
Customer account statements are provided online in the the trading platform. Customers have access to a full suite of available reports, including account value summary, detailed transaction listing, open positions, etc. Reports may be generated for any date range, and printed or saved for future reference.

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Why trade with Capitalor

Click and Deal from Real-Time Streaming Quotes -with Instantaneous Fills

At Capitalor, we've automated fills for ALL market orders. The system performs a real time margin check and instantaneously returns a trade confirmation. Why is this important to you? Automation means there's NO manual dealer intervention & NO requoting.
Many forex firms claim to offer "real time executable prices" or "live dealing rates". What these other firms don't say is that they only allow customers to initiate a trade request from the quote. Their dealers review trade requests manually, giving them the opportunity to reject any deal and requote a new price. Invariably, requotes tend to occur at the most inopportune of times, when you can least afford it.
As a client of Capitalor, you won't wait even a few seconds for a fill or have to endure requotes.
Our Streamline dealing with no request for quote is available all the way up to 200 Lots (20 Million)!
Please be aware that requotes sometimes happen, but only when clients are trying to take advantage of a wrong price quotes in the Market Watch. We do our best to ensure correct prices at all times and hence avoid requotes, however it can still occur.


Filled at your price on Market Orders*

At Capitalor you will not receive a fill at any price other than the quoted bid or offer.
Many traders accept slippage as one of the realities of forex trading. It doesn't have to be. Even a few pips now and then add up quickly and eat into your trading profits. At Capitalor, you can deal directly from our real-time streaming prices, and you'll always receive the current, at the market price on your forex trades.


Limited Risk

At Capitalor your risk is only limited to funds on deposit.


No Maintenance Policy

We have a no maintenance margin policy which means that you can go below the margin requirements during the week without us closing your positions. Throughout the week your positions can fluctuate without us taking action. We only require you to respect the margin requirements by Friday evening. This no maintenance margin policy means that we do not give margin calls and we do not automatically close your positions if you go below the margin requirements of your positions. However, if you approach the level where the loss of your open positions approaches the balance of your account, you will be stopped out and your positions will be closed. The stop out will be executed when there is only around 2% equity of the required margin left in the account.
We believe that our no maintenance margin policy gives more flexibility to you; our client, as you can decide for yourself when you want a position to be closed. Sometimes if the price is going against you, many of our competitors would close the position if it goes below the required margin - even if the price bounces back the next moment. We give the you complete control over your positions.


Up to 200: 1 Leverage

Capitalor offers a flexible margin policy that allows you to choose the leverage that's right for you - all the way up to 200:1!
The leverage available in Forex is one of the main advantages of this market. Higher leverage is possible because of unparalleled size of the Forex market - at about $3 trillion a day, the volume of the Forex market dwarfs the U.S equity markets by more than 30x. The sheer amount of transactions done every day in the Forex market makes it highly liquid, which in turn causes price stability. These three factors support the use of higher leverage.
The higher the leverage, the more buying power you have. Leverage increases your total return on investment -- with less cash outlay. Of course, trading on margin magnifies both your profits AND your losses.


Capitalor offers a robust Trading Platform

Capitalor offers the trading platform: Capitalor Trader!
Capitalor Trader is offering a secure and robust environment in where to trade and manage your account.
Among others, it has the following advantages:
- Streamline dealing with no request for quote for up to 200 lots (20 million).
- User friendly: the options on the client terminal are both very easy to grasp and to use.
- Constantly updated real time prices.
- Real time charts with the most common indicators.
- Daily account statement.
- Real time summary of client's orders, account equity, floating profit & loss, etc.
- Multi-lingual platform, choose from 21 different languages.
- News headlines provided by DOW JONES Newswires directly in the system.

*Contingent upon deal request being received prior to a rate change.





                                                    Meaning of the Word "Capitalor"

An Capitalor = Any party making capital investments, such as investing in currencies.