Main provisions of the Contract
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    Super Moderator Gulfstream's Avatar
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    Main provisions of the Contract

    Main provisions of the Contract

    The Contract – is the investors’ manual (guide for using), especially if it is scope and pithy. Having the Contract, the investor can monitor all traders’ actions for its accuracy and consistency. Any digression from terms of the Contract, is the signal, which the investor can use to make the decision promptly, which, may be, will help save his principal (or what is left of it).

    No matter what the Contract was concluded by the investor, he must know, that it must contains next main points: the subject, price and terms of the Contracts’ execution (proceeding).

    In addition, the investor must be in touch, that besides of main provisions of the Contract, listed above, it must contain such important clauses, as: rights and obligations of parties, the liability, the procedure of the Contracts’ cancellation and consideration of disputes, etc.

    Subject of the Contract

    Actually, subject of the Contract can be as transferring by the investor the right of controlling the account, where all funds are, as transferring the funds. But the most optimal variant for the investor, is when funds are on his account, and he only transfers the right of its controlling.

    It is also submitted here: what amount, what for, what purposes are and under what circumstances the right of controlling funds or funds by itself are transferred. (For example, …transfer the investors account with the amount of funds on it 10 000 United States dollars (with the exchange rate at the moment of signing the Contract) for controlling it on the Forex market with the purpose of obtaining optimal income by the investor (approximately from __% to __% per year) with reimbursable basis…).

    In addition, it should be noted, what ought to happen with the received profit: or it, as main funds, becomes the object of controlling, or it withdrawals to the separate investors’ account.

    The procedure of transferring the right of controlling the account (funds) is also reflected in this article of the Contract, the amount of the allowable risk is been too (… a maximum drawdown of the deposit must not exceed ___% from the initial amount…).

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    Last edited by Gulfstream; 10-29-2015 at 02:59 PM.

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    Super Moderator Gulfstream's Avatar
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    Amount of the Contract

    In the Contracts’ issue, the amount of the commission (compensation) of trader (the company) is stipulated. The amount is usually specified as the percentage ratio to the received profit, but there are such cases, when the compensation is set as a fixed sum.

    In addition, the procedure of compensation payment is stipulated here:

    · the necessity of giving the report
    · payment terms
    · provisions, if they are not observed, the compensation is not payed and so on.

    The most optimal provision of compensations’ payment, is giving the report on accounts’ (funds) control for the accounting period and compulsory availability of the profit in addition to the invested (transferred) amount of funds, if the other is not stipulated with the Contract.

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    Super Moderator Gulfstream's Avatar
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    Rights and duties of the parties

    The main duties of the company (trader) can be concerned to:

    · the assignment of the responsible person – trader for controlling the account(funds) of the investor, if the Contract is concluded with the company (herewith personal details and contacts of trader are pointed out : Full name, passports’ details, phone number, e-mail address),
    · controlling of the account (funds) accordingly to the chosen strategy by the investor (the strategy is pointed out),
    · the observance of risk-management rules (not exceeding the set amount of maximum drawdown of the deposit)
    · giving the report on operations, done on the trading account for the accounting period and others


    Rights of the company (trader) can be specified as:

    · independent controlling the account (funds) of the investor without preliminary consultation with him,
    · receiving the compensation, if the terms of the Contract are observed,
    · suspending of operations on the account or pre-term cancellation of the Contract in the case of violating provisions of the Contract by the investor and others.



    Duties of the investor:

    · to give the account of funds to the control,
    · to pay the compensation in the provided with the Contract cases
    · to inform trader about funds’ withdrawal or its refunding (if the account was transferred to the control) and others


    Rights of the investor, which can be added to the Contract:

    · realizing the control over the trading activity in the part of doing operations on the trading account by him,
    · an opportunity of withdrawal funds from the trading account in any moment, also refunding of it
    · installing the script, which can fix the minimum level of the drawdown and ,in the case of its’ achieving, block the account,
    · inquiry of the documents within force of the concluded Contract, which the company (trader) must give adjusted by parties terms,
    · cancellation of the Contract before the appointed time an others.

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    Super Moderator Gulfstream's Avatar
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    Procedure of Contracts’ execution

    The strategy is shown and written down here, with which trader works within the concluded Contract. Strategy data is usually is divided into: rational, universal and aggressive. The choice of the strategy depends on the desire of the investor, exactly what level of return he wants to get from the invested amount and level of risk, which he admits.

    The accounting period is set (usually it is 1 month), the report form is provided for the investor (main graphs and regulations, which the report must contains in itself), terms of its rendering.

    In this issue, it is also can be pointed at the procedure of further execution of Contracts’ terms, when the investor withdrawals funds and/or refunds the trading account.

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    Super Moderator Gulfstream's Avatar
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    Liability of the parties

    Clauses, which must be contained in the issue:

    · legislative standards, which are used by parties for non-execution or improper execution of the Contract,

    · the amount of parties’ liability when there is non-execution or improper execution of the Contract (establishment of penalties for delayed payment of compensation, procedure of covering losses (detriment) when there is exceeding of the admitted level of risk by trader and so on).

    · force-majeure circumstances ( if the force-majeure clause is enough scope, it can be reflected as special clause in the Contract), in some Contracts the force-majeure is not stipulated)

    The main force –majeure circumstances are stipulated with Civil code. However, managing traders, to limit the liability, as force-majeure points at such circumstances as: accidents, disconnection of electronic devices’ elements, breaking the internet connection, outputting mechanisms and so on. In this case, all investor’s losses will be as his own result. Therefore to this clause, if there is any, it must be approached with the utmost attentiveness,

    · procedure of disputes’ settlement (pacific negotiations or/and settlement of disputes in the court) and others.

    The Contracts’ force term and the procedure of its’ cancellation

    Contracts are usually concluded for the term not less than one year, however, in some cases, other contracts’ force terms can be stipulated.
    In the issue it is also pointed at:

    • the opportunity for the further prolongation of the Contract (what means the opportunity to prolong it),
    • provisions, when the Contract can be cancelled before the appointed time (the main is to point out, that when there is pre-term cancellation of the Contract from the party of the company (trader), the investor is informed about it not less than for a definite quantity of working days),
    • the procedure of mutual settlements between parties when pre-term cancellation of the Contract is. The main in the issue for the investor is to fix the balance of funds on the trading account in the moment of the Contracts’ cancellation, that from the moment of commitments’ termination on the Contract till the moment of funds’ withdrawal there will be no activity on the account. It can happen that all funds will melt on the trading account and then will quite vanish into thin air.


    The truth is, that pre-term cancelling of the Contract is not always advantageous for the investor, as it can lead to significant losses for him, arising because of the reason of urgent deals’ closing in an inappropriate markets’ situation.

    Main provisions of the Contract were described here. The Contract can be changed or added other issues and clauses with mutual consent of both parties. It’s up to them.

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    Well in my opinion it is better not to trade like that the things which invovles contacting and all. it is better to make money with a good strategy through live and fast execution strategy is the better option, making money is not an easy thing to do but with proper thing you can do it.

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    [lang=ar]rking days),
    the procedure of mutual settlements between parties when pre-term cancellation of the Contract is. The main in the issue for the investor is to fix the balance of funds on the trading account in the moment of the Contracts’ cancellation, that from the moment of commitments’ termination on the Contract till the moment of funds’ withdrawa[/lang]

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  8. #8
    Registered user moccarist11's Avatar
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    Quote Originally Posted by Gulfstream View Post
    In addition, it should be noted, what ought to happen with the received profit: or it, as main funds, becomes the object of controlling, or it withdrawals to the separate investors’ account.
    yes to work with the continuous running of system development as managing use with the evaluation to gives of improvesment as further to enter with the briefs on strategy and running of stable performance as running of system to deliver target within the complete of terms with the trading plan.

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  9. #9
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    the contract is the documents between the trader and the broker and the trader should read it carefully before accepting it, as he should know the rules of trading for that broker and so he should know it to follow the rules and avoid breaking of it, as breaking of the rules will not give the trader the profits he will make.

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  10. #10
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    There are so many things that we as traders fail to notice when opening trading account that's an contract that you have to come into when you open and account you have to agree with terms and conditions that you can look at very well this way you can know the risk that you are exposing yourself and your investment into there are thing that you have to look for in the terms and conditions in that you have to know how to get in and out the money that

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