Is opening an LHV Trader account subject to restrictions?
You must have USD 5,000 or the equivalent amount in euros to open an LHV Trader account. This amount may decrease later without the need to close the account. US stock exchanges have established day trader rules for accounts where the value of suitable collateral is less than USD 25,000. Leverage can no longer be used if the value of the assets in the account drops below USD 2,000.
How can I see the prices of European equities and how do I trade in them?
You need to order the price information of the relevant market if you want to trade in European securities and securities of other regions. For example, you should order Swedish Stock Exchange (SFB) Level I, which depending on the accountholder costs SEK 20 or 130 per month, if you would like to trade in equities on Stockholm Stock Exchange. Send an e-mail to LHV's Client Support at firstname.lastname@example.org to order price information and obtain trading rights.
If a client concludes 4 or more transactions within the same day (purchase and sale of the same stock, option, bond or single stock future (SSF) within the same trading day), then they qualify as a day trader and in order to continue trading, they must have at least USD 25,000 worth of assets in their account, and a breach of this rule results in transactions being blocked on the account for 90 days. Purchases and sales of the same security within the same day are the only transactions that count, as buying one security and selling another does not qualify as day trading. This restriction does not apply to futures, but does apply to options and short selling.
You have to start by checking for the simplest errors. Check that your Internet connection is working and that you can access other pages. After that, you could reboot your computer (and the modem). The next step you could try is to log on from another computer (all necessary software may not be installed when you buy a new computer). The version of Java installed on your computer may not be compatible with the Trader software.
Can I transfer money to the Trader account at any time?
You can enter orders for money transfer at any time, but transfers are made from 9 am to 5 pm on business days. Check the LHV website for information about the exact times when money is transferred on public holidays when foreign markets are open.
You can restore the LHV Trader settings that have been deleted or lost for any other reason. In the trading window of the LHV Trader system, go to File -> Restore Settings -> and select the last trading day whose settings you want to restore from the menu.
How do I trade on the primary and the secondary market?
You have to change the settings of your order to trade on the primary and secondary market. Select Pre-settings from the Global Settings menu in LHV Trader and tick the box ‘Permit order activation or fulfilment outside regular trading hours’. You have to tick the box ‘Fulfil outside RTH’ in the order validity menu if you want to permit single orders to be fulfilled on the primary or secondary market.
Do I have to pay for cancelling or amending an order?
Cancelling and amendment of orders is usually free of charge. Option and future orders are exceptions, as stock exchanges have often established charges for these. Usually USD 1.5 per order amendment or cancellation is charged simultaneously with crediting the account regarding the transactions completed within the same day, and the client receives USD 0.25 of credit for each completed option contract. The cancellation and amendment charges and the amounts payable for completed transactions are summarised at the end of the day and if the total is negative, then it is debited from the client's account as the charge for amendment or cancellation of the transaction orders of the day. The account is not credited if the amount is positive.
All most common currencies can be converted in the LHV Trader system. All you need to do is enter the symbol of the currency (EUR, USD, SEK) in the empty line on the trading screen, select Cash and the symbol of the other currency. The transaction is completed similarly to securities transactions.
The minimum account for currency trading is USD 2,000 and the maximum leverage rate is 1:50.
How big is the leverage I can use? Where can I see it?
LHV Trader allows clients to use leverage or to borrow money with equities as collateral, which can be used to buy new equities. All equities that cost more than one dollar and are traded on the main US stock exchanges (NYSE, AMEX, NASDAQ) can be used as collateral. You can borrow another 10,000 euros if you have 10,000 euros in your account. You can inflate your account to 40,000 euros within the same day, which means that the client's own funds comprise 25% of the total amount in the account. The share of own funds must be brought back to 50% by the end of the day. You must keep in mind that options and equities of low liquidity are not considered as part of collateral. You must already have collateral in your account when you trade in futures, which reduces the maximum amount you can borrow. You must have at least $2,000 in your account to use leverage and buy short positions.
Short selling securities allows you to benefit from decreases in security prices. You can short sell equities by concluding a sale transaction for selling equities you don't actually have by borrowing them from your broker. The position can be closed/covered with the completion of the relevant purchase transaction by buying shorted equities back from the market. Short selling is extremely risky, as potential losses are unlimited. Not all equities can be shorted; the best indicator is to add the shortable column in LHV Trader settings. Green colour indicates that an equity is shortable
Dark green indicates that the equity is shortable if a counterparty is found
Dark red indicates that the equity is not shortable at the moment
The column can be added to the trading window: Settings -> Global Settings -> Trading Window -> Default Settings -> Shortable