Rules and trading guide
Please note that throughout this document, all numerical examples use the $ currency symbol for simplicity but these trading rules apply equally to both our play money dollars as well as all real money transactions using £, € or $ currencies.
Per Point Trading
How to open and close a per point trade (open and close a position)
If you think a market price will rise, open a 'buy' trade at the 'buy' price for that market. To make a profit, you must close the trade by placing a 'sell' trade at the 'sell' price when the market's value has gone up.
If you think a market price will fall, open a 'sell' trade at the 'sell' price for that market. To make a profit, you must close the trade by placing a 'buy' trade at the 'buy' price when the market's value has gone down.
When you open a buy or sell trade you must also set a Stop Order for that market. A Stop Order closes the trade automatically at a price that you specify to limit the amount you could lose if the market moves against you. You may adjust the Stop level at any time while a trade is open to minimise risks and 'lock in' any gains. Minimum and maximum stop levels will vary, depending on the market you are trading and your account balance.
Closing a position will result in a profit or loss being realised on your account balance.
How to partially close a per point trade/position
Partially closing a trade allows you to 'lock in' some gains or minimise any losses on part of your trade. You can partially close a position by placing a new trade on the same market in the oppsite direction, using a lesser per point bet amount.
Example: If you have an open 'buy' trade on the FTSE at a bet amount of $5 per point, you can place a 'sell' trade on the FTSE at a bet amount of $4, $3, $2 or $1 per point to partially close the trade. (Note: a 'sell' trade at $5 per point would close the trade completely). Any profit or loss will be seen in your account balance.
Minimum and maximum bet sizes
The minimum trade size is $0.10 per point movement of the market. (the minimum trade size for real money is €0.10, $0.10, or £0.10)
The maximum trade size is $20 per point movement of the market. (maximum trade size for real money depends on the market and can be viewed before placing a trade)
The value of a point in a market can be seen on your trading screen.
Profits and losses
The following examples explain how per point profits and losses are calculated:
If you buy GOLD for $10 per point at a buy price of 3000, and sell the market later for $10 per point at a sell price of 3050, your profit is: (3050-3000) x $10 = $500.
If you sell NASDAQ for $20 per point at a sell price of 2000, and buy the market later for $20 per point at a buy price of 2020, your loss is: (2020-2000) x $20 = $400.
When you open a per point trade, we will move funds from your account balance to your margin balance to cover the maximum amount you could lose if the markets move against you. The margin balance figure depends upon where you have set your stop order level, and it therefore reflects the risk you are willing to take on your trade.
When you close a position in profit, your full margin on this trade is returned to your cash balance, along with the profit you make on the trade.
When you close a position at a loss, the amount you have lost is taken from the margin balance and the remainder is returned to your cash balance.
You may increase or decrease your margin balance by adjusting your stop levels and closing or partially closing your open trades. Decreasing your margin will return cash to your account so more funds are available for you to put on other trades.
Generally, all open trades are automatically closed when the market closes at the end of a trading day. However, you may choose to leave your trade open indefinitely using our rolling service.
You may set your trade to roll at the same time as when you open it, or at any time during the same trading day while the market is open. If you choose to cancel the rolling service, your trade will automatically close at the end of that particular trading day.
We charge a fee for the rolling service, and this is taken from your gnu account cash balance overnight. It is therefore, your responsibility to maintain adequate funds in the cash balance of your account to cover the fee on the days you wish to keep your position open. If your account has insufficient funds to cover the rolling fee on an open position, we will be unable to roll it and will close the position at the close of the market.
The current rolling fee is 0.195% of the total value of your position per night. This % will change from time to time based on the overall volatility of the markets.
Example: if you have a $10 per point position on S&P which is trading at 1450, the rolling fee is:
$10 x 1450 points x 0.195% = $28.28 for that night.
When the market becomes available for trading again (i.e. the next trading day) you can resume trading on that market. Please note that it is not uncommon for underlying market values to change over night (e.g. due to overnight news events), and therefore the market(s) you are trading may open at buy and sell prices which are different from those seen at the previous days close.
If a market's value moves beyond your stop order level overnight, your trade on that market will automatically close at the stop level you set.
Basic BetsBasic bets allow you to wager on whether the price of a market will be higher or lower than its current price in a fixed amount of time.
Minimum and maximum bet sizes
The minimum amount that can be wagered on a basic bet is $0.50. (the minimum trade size for real money is €0.50, $0.50, or £0.50)
The maximum bet size on a basic bet is $50. (the maximum size for real money is currently €10, $10, or £10)
Profits and losses
The winning payout for a basic bet is 1.7 x the bet amount. The maximum amount you can lose is the value of the bet itself.
Example: If you place a $5 wager that the price of OIL will be higher in the next 5 minutes and you are correct, your payout is:
1.7 x $5 = $8.50 (profit=$3.50). If you place a $5 wager that the price of OIL will be lower in the next 5 minutes and you are wrong, your loss is $5.
If the time frame you set extends beyond the closing time for that market, the bet will close when the market closes.
When you place a basic bet, we will move the bet amount from your account balance to your margin balance. If you win your basic bet, your full bet amount will be returned to your account balance along with your profit.
When you bet that a market will be higher, the outcome is based on the buy price of that market. When you bet that a market will be lower, the outcome is based on the sell price of that market.
Back a Player BetsThe Back a Player bet feature allows you to trade the markets by backing existing traders who are using the gnuTrade platform, instead of trading directly yourself. The gnuTrade Trader screen shows you the Top 10 successful traders (based on weekly portfolio returns) who are available for backing and information about their trading portfolio and performance. The Top 10 Traders may be trading with real or play money accounts. You may back a play money trader with real money and make a real money profit (or loss) based on their portfolio's performance. Backing a player with your play money account will not result in real money gains (or losses).
The maximum time that a backing bet can remain open is 7 days. A backing bet will start at 12am (midnight) GMT after you open your bet. A backing bet will end at 12am (midnight) GMT after you close your bet. Backing bets will automatically close at midnight GMT after 7 days have passed unless you close the bet at an earlier time.
Profits and lossesYou may back a trader in the currency of your choice, regardless of the currency they are trading in. Backing bet returns are based on the percentage change in value of the backed player portfolio during the period of the bet. For fair comparison, value calculations for all portfolios begin when the portfolio begins trading, and percentage changes reflect changes in portfolio value with all subsequent deposits, withdrawals and backing bet activity removed from the calculations. Backing bet returns are limited to a 200% return if the cumulative return on the portfolio exceeds this percentage for the period of the backing bet.
If a backed portfolio rises, remuneration is paid as 90% for the backing player, and 10% for the backed player. If a backed portfolio falls, the percentage loss is removed from the backing bet amount. The backed player's account is not affected.
Minimum and maximum backing amounts
The minimum amount that can be placed on a single back a player bet is $1. (the minimum trade size for real money is €1, $1, or £1)
The maximum single amount is $100. (the maximum trade size for real money is €10, $10, or £10)
Let's say Player A begins with a play money portfolio value of $10,000. Player B doesn't have time to follow the markets personally, but likes the way Player A has been performing, so chooses to 'back' Player A's portfolio with $100.
If, after a few days, Player A trades well and makes his play money portfolio go up in value to $12,000 (a 20% gain), both players will make money when player B closes the backing bet.
The total proportion adjusted (PA) trading profit is $20 (20% of the $100 backing money). Player A, the backed player, receives $2 (10% of $20); Player B, the backer, receives $18 profit (90% of $20) as well as the original bet amount of $100.
All backing bet winnings are credited to both the backer and backed player accounts, and are processed beginning at midnight GMT after the backing bet is closed.
Reasons why a backing bet may not become active
Real money backing bet requests may not become active (and bet funds returned in full) for several reasons, including:
- If the amount of the backing bet is of greater value than the portfolio itself (ie, a backing bet of 100 on a portfolio whose starting value is 10)
- If the backed player's portfolio has an excess number of real money backers already (Backing bets accepted are selected randomly from the day's backing bet requests). The number considered ‘excess’ is based generally on the underlying volatility of the markets and at the discretion of gnuTrade’s risk management team
- If the backed player's portfolio contains a bet with inherent unrealised value (such as a long running rolling bet)
- On suspicion or evidence of collusion between backer and backed portfolio players
No real money backing bet payments are made to backed accounts that are subject to real money gaming jurisdiction restrictions.
For more information on placing trades, please visit the Learning Centre.