Order Execution

It is important to fully understand the "rules" of marketindex in order to benefit from all the advantages it offers.

marketindex is different

marketindex offers a fully automated, direct access environment where RBS plays the role of market maker. marketindex executes orders using up-to-date exchange rates. It is not an auctioning system, or a matching engine and each trade is treated independently. Trading through marketindex requires no intermediaries or traders. Prices and decisions are made directly through the system. There are three types of margin trading orders that a Customer may submit to marketindex:

Market Orders

An Order to buy at the 'Offer Price' or sell at the 'Bid Price' quoted by marketindex at the time an order is submitted.

Orders are sent immediately to the marketindex servers without communication from a trader (assuming conditions such as sufficient margin are available). The rate used for the trade will correspond to the most current rate maintained by the server not necessarily the rate displayed in the Buy/Sell Market Order window. This is because the rate may have changed between the time the order was submitted and when it was executed. Typically, the difference between the rate obtained and that displayed on execution will be small . However, in times of market volatility, the difference can be larger. In this case, price bounds can limit your risk.

Limit Orders

A Trigger Price set below the Offer Price for a Buy/Long Order, or above the Bid Price for a Sell/Short Order quoted by marketindex.

Market-if-Touched Orders

A period of time between one hour and one month is set during which, if specified conditions occur, marketindex will automatically execute your order. If, after the designated period of time the conditions are not met, marketindex will automatically cancel the Order.

Trigger Prices

A Trigger Price must be set for both 'Limit Orders' and 'Market-if-Touched Orders'. This is the price at which marketindex will automatically execute the order.

For a Buy/Long Limit Order, the Trigger Price will always be lower than the marketindex Offer Price at the time the Order is placed. For a Sell/Short Limit Order, the Trigger Price will always be higher than the marketindex Bid Price shown at the time the order is placed.

For a Buy/Long Market-if Touched Order, the Trigger Price will always be higher than the marketindex Offer Price. For a Sell/Short Market-if-Touched Order, the Trigger Price will always be lower than the marketindex Bid Price shown at the time.

Price Bounds

Price Bounds can be specified for any type of margin trading order to determine an upper and lower price limit for which an Order will be automatically executed.

Risk Warning: marketindex offers leveraged products that carry a high degree of risk and it is possible to lose your entire investment (i.e. your total marketindex trading account balance). You should only speculate with funds that you can afford to lose. These products may not be suitable for all investors, you should therefore ensure you fully understand the risks involved, and seek independent advice where necessary. For more information please refer to Important Information on Risk, General Derivatives Risk Warning Notice, Terms & Conditions and The Royal Bank of Scotland N.V. Conflicts of Interest Policy.

The Royal Bank of Scotland plc is authorised and regulated in the UK by the Financial Services Authority. RBS is an authorised agent of The Royal Bank of Scotland N.V. (RBS N.V.) in certain jurisdictions. References in this website refer to RBS N.V. unless specified otherwise.