Broco Partners hook

Broco Created by traders for traders

Brocompany Russia & CIS
India

Placing Customers’ instructions

How are Customers’ instructions derived to stock and futures’ exchanges and to Forex interbank market? Why can our Customers trade with micro lots at these markets?

According to stock exchange definition, broker is one who acts as intermediary at the securities market (at stock exchange) or at commodity exchange performing duties for purchasing and selling securities or exchange commodity in the name and at the expenses of Customer or on their own name and at the expenses of Customer. As a rule, broker acts on the basis of Agent agreement, commission or errand agreement.

Thus a broker has the right to perform duties for purchasing and selling of securities or exchange commodity on their own name and at the expenses of Customer. According to international financial investment of the highest category 1 Global Business License and license issued by Russian Federal commission on financial markets, "Broco" has full and absolute legal right to provide brokers, dealer’s, investment services at international exchange, interbank Forex markets, commodity exchanges as well as at the stock and commodity exchanges of the Russian Federation. Therefore "Broco" also conducts broker’s duties for purchasing and selling securities or exchange commodity on their own name and at the expense of Customers’. In the contemporary world any broker seeks the best ways of conducting stock transactions for their Customers so that it could be a prompt process with the minimal costs. If a broker intends to trade at international stock exchange and commodity exchange, there are two ways to choose from: obtain accreditation at stock exchange and acquire spaces for trading at them in order to become clearing house (a total of several dozen in the world) or conclude agreement with one of clearing houses and conduct all transactions via this house. For instance, MF Global is a clearing house, while Open e Cry is not because conducts all transactions through R’J Brain. Since we care about providing our Customers with a maximally wide range of the tools traded, the company has chosen the way of concluding agreements with clearing houses. Depending on various circumstances (time of concluding transaction; the tool traded; stock exchange where this tool is traded; number of contracts, lots or shares) our specialist conduct operations of our Customers at the space where transactions will go through the promptest way. We receive instructions of our Customers further, operate at the stock exchange as accredited brokers, conduct transactions at the stock exchange itself or send instructions for committing transactions to one of leading Russian brokers. How we receive instructions from our Customers.

Our Customers exploit one of the most popular trading platforms "Meta Trader 4.0" under the brand of "Broco Trader" for transferring their orders to "Broco". This trading platform allows our specialists to receive orders promptly and then undertake all steps for their delivering to the stock exchange. "Broco" is interested in immediate execution of our Customer’s order and its prompt displaying in the terminal after immediate, automatic execution. Thus, our company provides that our trading system executes Customer’s order first and then we direct it to stock exchange.

"Broco" is interested in immediate execution of Customers’ orders and ensures that once order is automatically executed it will be displayed in the terminal. Therefore, settings of our services enable execution of the order prior to its directing to the stock exchange.

These actions by "Broco" are absolutely legal because in accordance with above–mentioned licenses our company has the right to perform as dealer at the market. It means that we have the right to announce quotation and conduct a transaction for purchasing and selling securities or stock commodity between itself and Customer, between its own Customers, between Customer and broker. Therefore, as broker’s company, within the period of entering Customer’s order and delivering this order to stock exchange at Customer’s expenses, "Broco" acts in Customers’ interests as licensed dealer as well. In practice it takes minutes.

Since "Broco" is a licensed dealer’s and broker’s company, it enables you to trade with micro lots CFDs. The procedure is as follows:

  1. execution of Customer’s order;
  2. displaying execution of this order in client terminal;
  3. collection of orders for a specific financial instrument;
  4. calculates difference between long and short positions for a specific financial instrument;
  5. derives this difference as united total order (market order) for purchasing or selling contracts which number is relevant this difference.

Example:

А Customer bought 30 wheat lots with delivery term stated in 2009 year December.
B Customer sold 50 wheat lots with delivery term stated in 2009 year December.

Our specialists can see that by the moment that the number of opened long positions for ZW Z9 future is 30 lots, the number of opened short positions for ZW Z9 future is 50 lots. Total order which is due to deliver to eCBOT stock exchange is 20 short positions for the ZW Z9 contract. According to regulations, the company sells 20 ZW Z9 contracts at e CBOT stock exchange. Below is the same example, but with micro lots.

А Customer bought 30 wheat lots with delivery term stated in 2009 year December.
B Customer sold 50 wheat lots with delivery in 2009 year December.
С Customer bought 0,08 wheat lots with delivery term stated in 2009 year December.
D Customer sold 0,08 wheat lots with delivery term stated in 2009 year December.

Our specialists can see that by the moment the number of opened long positions for ZW Z9 future is 30,08 lots, the number of opened short positions for ZW Z9 future is 50,08 lots. Total order which is due to deliver to eCBOT stock exchange is 20 short positions for the ZW Z9 contract. According to regulations, the company sells 20 ZW Z9 contracts at e CBOT stock exchange.

These examples can be made for any financial instrument such as currency pair, stocks or futures.

The procedure described provides our company with opportunity to legally execute all orders of our Customers automatically and instantly, maintain any category of traders and keep deposits of any volume at international financial markets; at that you can deal with a huge variety of financial instruments.