Market execution

Caveo is keen to execute all orders at the asking price. This, however, may result in trading at times of rapid market movement – from the effect of news, economic events or other market stimuli – hence resulting in a substantial upside or downside. Since Caveo directly executes all transactions on the market without interference and with full transparency, it may place an order at a higher or lower price than that of the asking price, regardless of whether or not this benefits the customer. Furthermore, Caveo does not have control over such an issue due to its automated execution system, which operates without human intervention whatsoever.

Limit orders

Buy stop order

This is executed when the asking price reaches a buy stop order. The order is executed at the next available purchase price or rejected if there is no available price; the order is executed for the full amount, but it can be executed at a higher or lower price than that of the asking price. The same policy applies to tracking stop orders

Sell stop order

This is executed when the asking price reaches a sell stop order. The order is executed at the next available purchase price or rejected if there is no available price; the order is executed for the full amount, but it can be executed at a higher or lower price than that of the asking price. The same policy applies to tracking stop orders.

Stop orders

Buy stop order

This is executed when the asking price reaches a buy stop order. The order is executed at the next available purchase price or rejected if there is no available price; the order is executed for the full amount, but it can be executed at a higher or lower price than that of the asking price. The same policy applies to tracking stop orders

Sell stop order

This is executed when the asking price reaches a sell stop order. The order is executed at the next available purchase price or rejected if there is no available price; the order is executed for the full amount, but it can be executed at a higher or lower price than that of the asking price. The same policy applies to tracking stop orders.

Margin Call

A trading platform designed to automatically close open positions when you reach the (margin call ) its 100% of the margin ratio

Margin is calculated using the following method which can be applied to all cryptocurrencies:

Margin required = (number of contracts x contract size x market price at execution time x percentage margin / 100)

Example 1: If we execute a purchase on Bitcoin with the following data:

  • Bitcoin Price = $8,115.00
  • Number of contracts to be purchased = 2 contracts.
  • Size of one contract = 1 bitcoin

so the margin = “2 x 1 * 8115 $ * 20 / 100” = $3,246

So. Margin = To buy two bitcoin sit-ins at $8,115.00

When calculating the required margin for any digital currency, pairs, commodity or stock index, traders must note the following:

  • The margin required for the position changes with the current price change, albeit slightly.
  • The margin required for the position changes when there is a change in the number or value of contracts.
  • Leverage affects the value of the margin required for a position. The higher the leverage, the higher the margin. Reserve a lower margin for the transaction. You should also understand the risks of using leverage.