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Other trader services

Trading on credit

Trading on credit is based on the principle of financial leverage whereby the trader makes money on the total change in investment capital. A type of loan may cover, for example, 85% of the investment and the client secures the loan using purchased securities or via financial resources on account.

An example of investment evaluation, a 20% return on investment with a loan and without:

For a purchase of 20 000 Kč with a 20% return - the investor earns a return of 4 000 Kč. When trading using financial leverage, with a loan for example of 80 000 Kč, for the same scenario the portfolio returns 20 000 Kč or 100% of the actual resources used by the investor. From these profits it is necessary of course to subtract the fees for the loan and the trade.

Securities lending

As one form of loan, here the borrowed assets are not financial resources but rather securities in which the investor is expecting a drop in the price. The investor borrows the securities and immediately sells them and in the event the investor's expectations were correct, the investor then buys the stock at the new market price, lower than when the stock was sold and then returns the stock. Securities lending is offered by most securities traders.

Intelligent instructions

The principle idea behind intelligent instructions is to lower the investment risk of unexpected changes on the capital markets. These instructions are automatically generated as well as buy and sell orders according to the type of intelligent instruction and the method of its submission.

Each client selects what is to be his or her position based on his or her investment strategy according to the possible market conditions and the trading system then automatically reacts without delay. The strength of intelligent instructions is that they secure the best price for completing predetermined transactions, prevent losses above a certain level during unexpected market developments and mask the parameters of the instruction so that they don't have any influence on other market participants. Currently only Fio offers trading with intelligent instructions on the RM-SYSTÉM stock exchange.

Portfolio management

Independent portfolio management is a product for investors who want to invest in stocks but don't have the time or expertise to manage a newly created portfolio alone. A professional broker agrees on the investment strategy with the investor and only then does the investor actually invest. Clients can receive an overview of their investment's performance at any time.