RAMM uses the following terms “order, “trade” and “position”.
Order – is an instruction to buy or sell a financial instrument.
Trade – states the fact of buying or selling of an instrument with actual price and volume.
Position – shows the current volume of a purchased or sold instrument in total.
RAMM platform is based on the netting principle. The account can have only one open position for each trading instrument at any given time.
RAMM supports the usual set of Market order types:
- Buy Market (by at the current market price).
- Sell Market (sell at the current market price).
When a market order is executed, its volume, depending on its direction, is added to or subtracted from the current open position for the instrument, and a record about this operation (i.e. a trade) is added to the investment statement.
There are three types of trades:
- In (enter position, increase volume)
- Out (exit position, decrease volume)
- InOut (reverse position, i.e. decrease volume to zero and then enter a new position in the opposite direction)