FAQs

Trading Forex/CFDs is highly speculative and can lead to both profits and losses. It is important to understand that if the markets move against you, you could lose all your invested capital. It is therefore crucial that you only invest capital that you can afford to lose and manage your risk and capital properly. Read full Risk Disclosure.

Keep in mind though, that Viverno maintains a “negative balance protection policy” which means you can never lose more than what you have invested.

When it comes to trading Forex/CFDs it is important to remember that the financial markets are highly complex and that there is no such thing as a “single formula to success”. There are many variables that can affect the direction of an asset and it is therefore important to invest time and effort in education. Viverno provides a great number of online webinars, courses and videos on trading. You may also wish to consider trading on a demo account before investing your own capital.

Every instrument has a BUY price and a SELL price. This difference in price is called the spread, and contains the commission which we charge on each trade.

As soon as you open a trade, the current rate shown is the one at which the position would close.

For example, when you open a BUY trade, it will open at the BUY price, and close at the SELL price. When you open a SELL trade, it will open at the SELL price, and close at the BUY price. Due to the difference between the two rates, a new trade always shows an immediate loss.

A spread is simply the price difference between where the trader may purchase or sell an underlying CFD asset, this is commonly referred to as the bid and ask price. You can think of the spread as the trading cost for placing a position; smaller spreads essentially enable you to reduce your trading costs thus making profits larger or losses smaller, after you close your positions.

For example, if the BID price is 1.2634 and ASK price is 1.2636, the Spread is the difference between the two: 2 pips.

Margin represents a security deposit which is at least required to open a trade. In plain terms, margin is the amount you are contributing to a certain trade and in essence it is also the amount you stand to lose should the markets move against you. Margin is also the term used for the amount of money that you need to keep in your account to sustain a position, called the maintenance margin.

Eventually, if your position threatens to wipe your account clean, there will be a point where the position will be automatically closed, this is called a margin stop-out. In order to sustain your positions open, the automatic closing of your position could be prevented by depositing more funds or by closing some of the open positions in order to increase the margin.

CFD stands for “Contract for Difference”. Rather than negotiate or physically exchange the financial asset (e.g. physically buy or sell the stock of a company), the CFD is a transaction in which two parties agree to exchange money on the basis of the change in value (price) of the underlying asset, occurred between the point at which the position is opened and the moment when it is closed.

With CFDs there are no fixed amounts. When placing your order, you determine how much value is designated to a pip. While your position is open, your profit or loss is determined by this criterion.

It is important to note that a CFD is a leveraged product, which means you only pay a margin (collateral) in order to open a trade, which corresponds to a fraction of the actual position value. Using leverage also means that you only need to deposit a small percentage of the full value of the trade in order to open a position. This is called ‘trading on margin’. While trading on margin allows you to magnify your returns, losses will also be magnified as they are based on the full value of the position.

Please ensure that you understand all risks associated with CFD trading before placing your order.

Please note that your trades might be closed automatically due to Stop Out or when the Stop Loss and/or Take Profit is triggered.

A stop out level is a specific point at which all the active positions are closed automatically because of a decrease in the margin level of the client. In the event that there is insufficient Margin in the Clients Account or in the event that the deposited Margin is not sufficient to meet the required Margin rates, as determined by Viverno, we shall have the right but shall not be obliged to start closing Client’s positions starting from the most unprofitable, when the Margin level is less or equal to 100%. In the case where the margin level is equal to or less than 50%, the client’s positions shall be automatically closed, starting from the most unprofitable, at the market price.

Stop Loss and Take-Profit orders are used to automatically close an open position. With a Stop-Loss, losses should be limited, while the Take-Profit is used to protect profits. Once the market price reaches the Stop-Loss or Take-Profit level, the position is closed at the current available market price. However, with both order types, it cannot be guaranteed that the predetermined exit level will exactly match the actual exit price. If the market price rises or falls above/below the predetermined exit level, higher profits or losses than the desired ones may occur.

Viverno offers Negative Balance Protection (NBP) as part of the Client Agreement so in the event that a negative balance occurs in the Client’s Trading Account due to Stop Out, the Company will make a relevant adjustment of the full negative amount so that the Client does not suffer the loss as per our Negative Balance Policy.

For more details please refer to our Best Interest and Order Execution Policy.