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FAQ

Markets and Trading  

Where can I find all the instruments available for trading?  

The main currency pairs, precious metals, indices and other trading instruments can be found on the Euro-Finance website, in the Individual Clients section.

What are the risks involved in Margin Trading?  

The main risks involved in margin trading are related to the preliminary expectations of the investor that they will realize considerable profits from the underlying asset, and their attempts to multiply them by using borrowed funds and the leverage effect. Moreover, every investor should understand, accept and multiply all the expectations for potential direct losses, which may occur due to an unfavorable movement in the market price of the underlying asset.

Maintaining an open position, when the movement in the market price of the underlying asset is unfavorable, and expecting a turn of the movement direction may also lead to daily losses, resulting from the present revaluation of the positions (mark to market) and/or a supplement of the securitization (the deposit on the margin).

The stop-loss orders are used in order to limit this multiplied price risk, because they can limit to a certain extent, but not completely, the general price risk within the boundaries of the provided investment securitization. However, if a market opens with a gap, and the price falls to a level that exceeds the stop loss order, it may not be triggered, and will be activated at the first available price.

What is the difference between Available Cash and Buying Power?  

Buying power is referring to accounts that have margin trading enabled. In a margin account, the buying power is the total free cash held in the brokerage account plus maximum margin available.The available cash is the amount of cash that is free to be invested or withdrawn. For accounts that do not have margin trading enabled, the buying power is equal to the available cash.

What are the minimum and maximum trading values?  

In EF MetaTrader 5, the minimum amount that the CLIENT can effect a transaction with is 0.01 lots and the maximum is 10 lots, where the value of 1 lot equals to 100 000 currency units in base currency, 100 shares for instruments of the ‘Contract for Differences’ type, 1 index or 100 ounces of gold and 5,000 ounces of silver. Moreover, as in EF MetaTrader 5 you are trading with Contracts for Difference (CFD), the application of the leverage techniques is available. The size of the leverage is available from 1:1 up to 1:200. This means that if you leverage level is set at 1:200, you will need 500 currency units to make a transaction with 1 lot, whereas if it is set to 1:1, you will need 100 000 currency unites to effect the same transaction.

As EFOCS is a platform that gives you access to the Bulgarian Stock Exchange and to the Frankfurt Wertpapierbörse, the trading limit is based on the market regulations and the market availability.

What are trailing stops?  

A trailing stop order is much similar to a “stop loss order”. The main difference is that the trailing stop order is set at a level (a percentage or a fixed amount) below the present market price. The trailing stop order is moving upwards (i.e. the stop loss level is becoming higher) as the market price goes up, and remains unchanged if the market price is going down, being activated if the set change is reached. The trailing stop orders are mainly used in bullish markets, as a way to secure profit.

What are the bid and the ask prices?  

The bid price represents the highest priced buy order that is currently available for the market (i.e. the highest price that a trader is willing to pay to go long). The bid price is the price that is received whenever a trader places a market sell order (i.e. a market order to go short). The reason for this is that a market sell order is always filled at the best available price, and for a sell order, the best available price is the highest buy order.

The ask price represents the lowest priced sell order that is currently available for the market (i.e. the lowest price that a trader is willing to pay to go short). The ask price is the price that is received whenever a trader places a market buy order (i.e. a market order to go long). The reason for this is that a market buy order is always filled at the best available price, and for a buy order, the best available price is the lowest sell order.

What happens when the market opens with a gap, at a level below the stop-loss level?  

If the market opens with a gap, your stop-loss order may not be triggered. This may happen in a very volatile and fast moving market. In this case the position will be closed at the first available moment and price, when the market opens, and the difference will be charged from your account. If you do not have sufficient funds in the account, Euro-Finance Ltd. shall inform you on the procedures for paying your debts.

What are a stop order and a limit order?  

Limit orders are orders to buy or sell a contract at a specific or better price. They are designed to prevent slippage and can only be used to buy at or below the current market price or to sell at or above the current market price. The downhill is that limit orders may not get filled, depending upon how the market is moving, but if they do get filled it will always be at the chosen price or at a better price if there is one available

A stop order is a conditional order to your broker to initiate a market order as and when a particular price level specified by you is reached. This can be above or below the current market price. Stop orders may be used to enter trades, but tend to be used mostly to exit trades that go ‘offside’ (i.e. into the red) to cap a loss, or to trail behind price in a trade that’s in profit. These orders are referred to as ‘stop loss’ and ‘trailing stop’ orders respectively. In an extremely fast moving market, it’s possible for price to shoot through your stop order and fail to trigger it.

What are Euro-Finance Ltd. commissions and fees?  

The commissions that we charge may vary, according to the type of transaction, the volume, the type of client you are (professional/non-professional), etc. For full information about the fees of the company, please check the Tariff for Fees and Commissions of Euro-Finance Ltd.

What kind of instruments can I trade with?  

With EF MetaTrader 5, you can trade with CFDs on currency pairs and on stocks, traded on the markets in Germany, Great Britain and USA, the indices themselves and with precious metals.

With the EFOCS platform, you can trade with securities, listed on the Bulgarian Stock Exchange (BSE) and on the Frankfurt Wertpapierbörse (FWB) – Frankfurt Stock Exchange. The access is based on the direct membership of Euro-Finance at both exchanges, without the necessity of counterparty broker.

How to trade with instruments that are not available in EF MetaTrader 5 or EFOCS?  

Due to its excellent contacts with a number of financial institutions such as Deutsche bank, Citigroup, UniCredit and other active participants in the OTC market for securities with fixed income, Euro-Finance provides its clients access to a wide variety of debt and structured financial instruments which fully correspond to their investment strategies and objectives. However, if a company cannot be found on the listed in EFOCS or MetaTrader 5, upon client’s request we can add specific companies’ shares that have high liquidity and investors’ interest, and Euro-Finance Ltd. shall provide you with quotations for the specific company and will inform you about any additional charges that may set in.

Accounts  

How much does it cost to transfer an account to Euro-Finance Ltd.  

The only charges that may occur when transferring an account to Euro-Finance Ltd., are the fees of the other investment intermediary. Euro-Finance Ltd. will not charge any additional amount for transferring an account to it.

How are my accounts protected?  

The access to the platform is made through a username and password, while the communication is encrypted by the usage of an online certificate. The CLIENT carries the full responsibility of keeping the information about the access to the account safe. In the case of losing or the misuse of information, the CLIENT shall inform EURO-FINANCE Ltd.

How can I transfer funds between my accounts?  

Every client can transfer funds between their accounts, registered with Euro-Finance Ltd., for free by submitting a Transfer funds between accounts form

What is Client’s classification?  

Depending on their characteristics, every client of Euro-Finance Ltd. shall be classified as professional client, non-professional client or an eligible counterparty. Every type has their positive and negative sides. For more information, please check the PROCEDURE AND POLICY FOR CLIENTS’ CLASSIFICATION. Every client has the right, pursuant to MFIA, to submit a request to be treated as a Professional client, by filling the following form: REQUEST FOR PROFESSIONAL CLIENT STATUS UNDER MFIA

How many accounts can I open?  

Every client can open an unlimited amount of DEMO and REAL accounts. 

Under what conditions is my account going to be deactivated?  

Upon reaching fund availability of less than 20% of the minimum deposit required for opening an account, or account inactivity (absence of transactions) for 3 months, the account will be terminated.

When does the EF MetaTrader 5 demo account expire?  

The demo account in MetaTrader 5 is for an unlimited amount of time.

What is the minimum/maximum deposit?  

The minimum required initial deposit is 100 currency units (EUR/USD/BGN). The maximum amount of deposit on a cash desk is BGN 14,999. If the deposit is of more than BGN 10,000, the client should fill a Declaration for Origin of Funds. There is no limit on deposits made through bank transfers.

What are the main benefits of being a client of Euro-Finance Ltd.?  

Euro-Finance is among the leading Bulgarian investment intermediaries. We aim at offering quality investment products and services, tailored to the needs of each client. The company is a member of the Bulgarian stock exchange (BSE), the Central depository and the Frankfurt stock exchange (FWB) and is the only financial intermediary in Bulgaria who is a member of the Deutsche Borse Group . Euro-Finance also participates in the Society for Worldwide Interbank Financial Telecommunication (SWIFT) and the Electronic System for Registration and Servicing of Trade in Government Securities (ESROT). The company has a very wide network of correspondent banks and clearing institutions, including Deutsche bank (Frankfurt), Unicredit HypoVereinsbank (Munich) and Citigroup (London). The product portfolio of the bank includes brokerage services, custodian services, investment banking and asset management. Among the client base of Euro-Finance there are public and private entities, mutual funds, banks, government institutions and special purpose vehicles.

Platforms  

What mobile devices does EF MetaTrader 5 support?  

EF MetaTrader 5 supports all the devices, both smartphones and tablets, which run either the iOS or the Android  peration System.

How can I install the platforms on my mobile?  

First you need to go to the EF MetaTrader 5 download section and then choose the type of platform that you want to download – for iPad, iPhone or Andriod. After you download it, you should run it on your Mobile device and follow the steps on the screen.

What is EFOCS?  

EFOCS is Euro-Finance On-line Customer Services. It is a specialized software that provides the CLIENT with remote access, in real time, to their account for cash and/or financial instruments, including information about balance and net cash, movements and operations, with the opportunity to receive current quotations and to submit orders for the conclusion of transactions with financial instruments, traded on the BSE-Sofia Ltd., as well as to receive current quotations for the financial instruments traded through the online trading platform XETRA, on the Frankfurt Stock Exchange at the Deutsche Börse, and to submit orders for the conclusion of transactions with shares, ETFs and ETCs. Moreover, it allows the CLIENT to receive current quotations for the financial instruments, included in the DAX30 and NASDAQ100 indices, as well as for the DAX30, NASDAQ100, S&P500, Dow Jones Industrial Average, CAC40 indices themselves, and to submit orders for the conclusion of ‘Contracts For Differences’ (CFD) with an UNDERLYING ASSET of financial instruments, included in the indices, and the indices themselves and to receive current quotations for the ‘buy’ and ‘sell’ currency exchange rates, and to submit orders for the conclusion of agreements for netting/margin trading/ for particular currency pairs

What is EF MetaTrader 5?  

The MetaTrader 5 is a trading platform that is designed to provide brokerage services to traders in Forex, CFD, Futures, as well as Stock markets

General  

What is your headquarters address?  

The headquarters of Euro-Finance Ltd. are located on the address: 43 Christopher Columbus Blvd., floor 5, Sofia, Bulgaria. Post Code:1592 

We also have an office located in Stara Zagora, with an address: 87 Hadji Dimitar Asenov str., floor 3, office 6. For more information about contact details, please check the Contact section on our website.

Does my browser support your page?  

The Euro-Finance Ltd. website is supported by all the browsers – Internet Explorer, Google Chrome, Opera, Mozilla Firefox, Safari, etc.