ActivTrades: Client Protection

ActivTrades always takes care of their clients by providing them with client protection:

Protection from negative balance

The interests of ActivTrades' clients are company's top priority - that is why with ActivTrades your balance can not fall to a negative value.

The level of automatic closing of positions on your account has been created to give you the assurance that as a result of commercial action, your potential losses will never exceed your deposit amount. As an additional warranty, ActivTrades offer a Balance Protection Policy and will credit your account to zero balance in case your account reaches a negative balance as a result of your business decisions.

Balance Protection Policy also applies to multiple accounts, so if you have a negative balance in one's account and a positive balance in another, then the positive balance will be used to cover the negative balance. This practice also applies to joint accounts you own with other people, in which case each joint account holder will be held liable for an existing debit or credit on the account.

Client balance protection is valid for all individual trading accounts.

Example of automatic termination - Trade Out

You have €10,000 capital on your trading account and an open short position in EUR against USD from 5 lots (€500,000) at a price of 1.1500. The Trade Out Termination Level - Trade Out for your account is set by ActivTrades at 30% of the warranty margin used, and the maximum allowed leverage is 1:50. That is, the margin requirement for this trade is equal to the total amount of €10,000 of your capital.

In this case, the market rises to 1.1650/1.1652, and at this level your position has an open loss of $7,600 (152 pips X $50 value for each pips) or €6,522.48. Your free capital now stands at €3 477.52. If the market rises by a further 1 pips to 1.1663/1.1665, then the loss will increase to €7,072.43 and the balance will decrease to €2,927.57. At this point, you no longer have 30% of the capital (warranty claim requirement) and the system automatically caps your position at 1.1665. The remaining balance of your capital falls to €2,927.57.

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Inflation in Australia below expectations - the Australian dollar with a five-month minimum

Inflation in Australia was surprisingly low, continuing to be under the central bank's target for a second consecutive year. This is increasingly casting off the prospects of raising interest rates.
Consumer price inflation in the country rose to 1.8% for the year to September, below analysts' average inflation expectations of 2%.
The local currency fell to four and a half months minimum and early in the morning lost 0.6% of its value and exchanged at levels of 0.7721 US dollars.
This is the seventh consecutive quarter in which inflation is below market expectations of 2%.
The Australian central bank's long-term inflation target is between 2% and 3%. Permanently low inflation may, however, change the expectation of a recent increase in interest rates by the central financial institution.
Currently, interest rates in Australia are at a record low of 1.5%.

The dollar is close to its highest levels in anticipation of the ECB

The dollar changed slightly yesterday, sticking to its highest values ​​in two weeks before the decision of the ECB later this week.
The dollar index was traded late last night at 93.94 points. The euro traded 0.1% up against the US dollar, at 1.1760, against its 1.1750 prior day.
This week will be extremely saturated at meetings of central banks. There are decisions about the monetary policies of the Bank of Canada, the Swedish and Norwegian central banks, and the ECB on Thursday.
The dollar has found some support after rising interest rates on US government bonds, with 10-year bonds reaching 2.4 percent.
Data released yesterday about activity in the industry sector showed a steady performance of the US economy this month.

Gold with a two-week bottom yesterday

Gold has reached its lowest levels in more than two weeks on Monday, following expectations of continued Japan's ultra-stimulus policy after Abe's election victory. This made the dollar more expensive than the rest of the major currencies and, accordingly, negatively affected the price of the yellow metal.

The spot price of gold fell momentarily yesterday to the lowest value of 1 275 dollars per ounce or its lowest level since October 6. Futures of precious metal with delivery in December lost 4.1 dollars of value, to levels of 1 276.4 dollars per ounce.

The euro area economy remains stable

The economy of the eurozone has kept its strong performance since the beginning of the year, with good performance stimulating companies to recruit new staff at the fastest pace in ten years.
The PMI index for manufacturing and services fell to 55.9 in October, compared to 56.7 in September, according to IHS Markit.
And although the indicator has fallen to the lowest level in two months, the rate of new job in the industrial sector has risen to the highest level since 1997.
Good data comes true shortly before the ECB's meeting this week, which is expected to cut its record-breaking stimulus to the economy.
Currently, the ECB buys back assets worth 60 billion euros, which are expected to be reduced by between 20 and 30 billion dollars from the beginning of next year.
And while inflation is still far below the expectations of the central bank, the first steps towards reducing incentives are expected to be released shortly.

A rare moment in the history of US markets - no drop by 5%

US indices are close to their record values. In fact, the S&P 500 blue chip index has registered 322 days without experiencing a 5% or more adjustment.
This year, the index has record-breaking closing levels in 47 of the 201 stock exchanges.
Since July of last year, the blue chip index has added 19% of its value without having registered an adjustment of 5 or more percents. And this has happened very rarely in the history of the index.

You may be wondering how historically the market has been presented during these long periods without a decrease of 5% or more.
An answer to this question could be found in the chart below:

New records for US indices, the dollar with groth for fifth consecutive day

US indices reached new records yesterday as the dollar continued its winning streak. This happened after investors focused on the Fed's forthcoming interest rate policy and sent US government bonds up.
The spread between 5 and 30-year bonds fell to its lowest level since November 2007, following expectations for a stricter monetary policy worldwide. This has prompted investors to sell short-term government bonds.
The Dow blue chip index added momentarily over 120 points, reaching a new record high.
The dollar rose for the fifth consecutive day, supported by the rise in US bond interest rates. The dollar index added 0.1% to its value.

The pound UK collapsed after GDP and retail sales

The pound lost 0.5% of its value after retail sales data in the country fell more than expected. This reduced the chances of an increase in interest rates at the next meeting, as was the expectation of the majority of market participants.
Retail sales in the country declined by 0.8% on a monthly basis in September, which was far worse than the average expectations for a 0.1% decline.
The growth of the British economy slowed to 1.5% yoy, in the third quarter, which was the weakest performance since October 2013.
According to Tuan Lan Nguyen, a currency strategist at Commerzbank AG, the data was quite disappointing and sent pounds down strongly against other major currencies. The expert doubts that with such data, the UK central bank will keep its promise of raising interest rates at its next meeting. However, he remains behind Commerzbank's medium-term forecast for an increase in interest rates.
The pound fell by 0.5% to 1.3135 against the dollar. With the same percentage, the pounds also fell against the euro to 89.69 pence per euro. Interest rates on 10-year British bonds fell four basis points to 1.28%.

Oil with highest price since July

US indexes rose to new historical records, with oil and copper also rising, rising raw materials index. US government bonds fell after Yellen confirmed the FED's position of a gradual rise in interest rates.
Meanwhile, oil has continued to rise and reached a new two-week high as a result of mounting tensions in Iraq that are expected to affect supply. US crude oil rose by 0.8 percent to 51.86 dollars a barrel.
The US reporting season is gaining momentum, with leading US financial institutions reporting the results.
The S&P 500 index ended with an increase of 0.2% yesterday to a new historic peak.

Inflation in the UK highest in five years

Inflation in the UK rose to its highest level in five years in September, driven by accelerated food and transport prices.
The inflation rate rose to 3% in September on an annual basis, or the highest since April 2012, against 2.9% a month earlier, according to national statistics.
Data increases expectations for a raise in interest rates by the British Central Bank, perhaps next month.
The rise in the price of oil and petroleum products may mean that we will see further inflation in the future, according to market observers.
Now, inflation is a full percentage point above the target of the Bank's inflation rate of 2%.