General Information

REYMOUNT, A more direct approach

General Information Reymount Investment Limited, offers its clients a fast and efficient service in Foreign Exchange , EFP and Bullion, as an independent market maker and broker, through its 24 hour dealing desk, via the telephone or Internet. Corporate customers, medium sized banks, investment managers and individuals who wish to participate in the Foreign Exchange market normally do so through their banks and are usually referred to a sales desk. As the customer is not in direct contact with the bank's dealers, prices quoted are usually not so competitive and vital time is likely to be lost in execution.

Reymount was founded to overcome these problems. As an independent market maker and broker, it provides direct access to experienced dealers. Clients therefore, can obtain competitive prices and execute deals quickly.


Trading with Reymount through "NetTrader"

Foreign Exchange is the simultaneous exchange of one currency for another between two parties at an agreed rate. Settlement can be immediate (spot), in the future (forward) or deferred (on a daily basis). Because settlement can be deferred, it is possible to sell a currency you do not already own in exchange for a currency you do not particularly need or want, (i.e. to gain from an exchange rate appreciation).

Reymount Investment Limited is a principal to its Clients in the Foreign Exchange markets. If you want to transact a foreign exchange deal with ourselves and defer settlement, you must first open an account and deposit with us a margin (cash deposit or bank guarantee) to cover any exchange rate losses that may occur when you finally settle or close out the deal. This margin is also used to collateralise the position prior to close out or settlement. Deals can be for cash or deferred settlement. Deferred deals are rolled over on a daily basis at competitive swap prices.

Reymount is a principal to its Clients, there is minimal commission or transaction fees under the Net Trader online dealing service.


MARGINS

Our margin requirements vary according to the size of the transaction and the currencies you will be trading. The minimum amount of margin we accept in order to open an account is USD 10,000 or equivalent currency.

It is important to understand that the margin requirement must be maintained by the Client when carrying open positions. It is the Client's responsibility to ensure his account is sufficiently margined at all times, especially during volatile trading periods.

Clients can only trade based on cleared funds in their account, not on promised funds or funds in transit. Margin calls are usually made when the equity in the account falls below the margin requirement of the position(s) at that time. However, margin calls can be made at any time, especially during volatile market conditions, and arrangements must be made by Clients should they be travelling or cannot be contacted by Reymount.

If the equity in the account falls below the margin requirement of the clients open position(s) then Reymount may liquidate the client's open positions. Please refer to our Trading Agreement which address the non payment of margin call and change in margin requirements.

TRADING EQUITY

Client balances including open positions are valued constantly throughout the day against the US Dollar and at close of business using the London closing rates. All Client account balances are valued in US Dollars to determine the Clients' net worth (equity) and to assess margin call requirements and dealing capacity. Clients can obtain their updated equity any time of day through our on-line back office system, via the Internet or from our website.

BACK OFFICE

After every deal, you will be sent a confirmation. The confirmation will have details of the deal and rollover transaction, including value date, rate, amounts bought and sold and deal reference number. Check the details on the confirmation carefully.

By default the online statement will contains details listing about all your transactions that you had undertaken for the period. Contained in this statement will be:

A summary of your financial position. This will list all your currency balances and will show the Dollar equivalent calculated at the close of business.

Further, in the financial summary, there may well be open forward currency balances. These represent deals that mature after the statement date. These are not necessarily forward deals, they can be spot deals transacted on the last business day of the statement month for value two days forward into the next calendar month.

A statement detailing your ledger activity for each currency. This will list every transaction by currency and value date for transactions passed over your account during the month.

If it is applicable, an open forward position report. This will list all transactions that mature after the statement date. The outstanding amounts will be valued in US Dollars (for accounting purposes only) to value any outstanding forward profit/loss at month end rates and will be featured in the financial summary.

INTEREST

There are two ways a Client accrues interest on his account:

Open trade positions accrue interest through the rollover markets at the close of business each day. For example, say a Client bought Sterling and sold US Dollars. The Client would be due credit interest on his Sterling account and due to pay debit interest on his Dollar account.

The open trade would be rolled forward in the round amount of currency the Client generated the deal in.

Clients net currency balances including excess funds, trading profits/losses and previous rollover gains/losses, accrue interest in their particular currency at the daily call rate, providing the Client's net equity is in excess of US $10,000. At the end of each month, all interest due is converted into US Dollars and credited to the Client's US Dollar account. Interest can be paid to Clients in other currencies, upon request. When a Client opens a position the margin required is utilised and, therefore, it does not accrue interest.