Today is : August 22, 2019  
   [النسخة العربية]  


    FAQ

General Principles

General Questions :

 What is a trading session?
 What are the operating hours?
 Who can use Emirates NBD Tadawul?
 What currencies are used for trading on Tadawul?
 What do I need to trade on Emirates NBD Tadawul?
 Are there any costs incurred for using the service?
 What is Price Protection?
 What are Price Ticks?
 
The Tadawul Environment :
  What are price controls?
  What can be traded on Tadawul?
  What are Member Accounts?
  What is the opening price?
  How are orders matched in the market?
  Which orders get executed first once the market opens?
  Which orders get executed first during market hours?
 
Trading :
 What is the new rule in Tadawul Trading?
 What is ?Fill or Kill? Time in Force?
 What is ?Fill and Kill? Time in Force?
 How can I buy shares?
 What if I do not have enough funds to cover the volume I am asking for?
 How can I sell shares?
 What is a Limit Order?
 What is a Market Orders?
 Can I change an order I placed?
 Are there any limitations as to what attributes of the order can be changed?
 What effect will changing the order have on the priority of it?
 Can I cancel an order I made?
 Can I define how long my order should stay on the market?
 If I do not set a Time in Force, what happens to my order?

 

What is a trading session?

A trading session corresponds to the operation of the trading system that occurs between the pre-open state and close state.

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What are the operating hours?

Trading Hours:

Trading Days: One session, Saturday through Wednesday except official holidays.
Trading in Equities and ETFs : 11:00 am - 03:30 pm
Trading in Sukuk & Bonds : 11:30 am - 03:30 pm

Official Holidays :
Official holidays in the Kingdom of Saudi Arabia are:

  • National Day of Saudi Arabia (23 September).
  • Eid Al-Fitr and Eid Al-Adha.

Market State Description:

Market Open - Order Maintenance:
It is the first of the four market states where buy and sell orders entry, modification (quantity or price) and deletion are allowed. However, in this state no matching occurs, orders are only held in the order book. The best 5 price levels for buy & sell orders of each listed stock are displayed along with the number of orders and quantities. This state is equivalent to the ?Pre-Open? state in the old system.

Market Open - Trading
It is the second state of the market where all functions in the preceding state are allowed in addition to matching orders. Moreover, the best 10 buy and sell orders in terms of price are displayed. This state is equivalent to the ?Open? state in the old system.

Market PreClose:
During this state, price modification or quantity increase for buy and sell orders are not allowed; however, quantity can be reduced. Moreover, no new buy or sell orders are allowed, but orders entered in the previous market state (Market Open- Trading) can be deleted.

Market Close:
It is the state where the market is completely closed. No actions can be preformed on any of the market symbols.

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Who can use Emirates NBD Tadawul?

Any Saudi citizen with a valid account with Emirates NBD, a valid portfolio that is linked to the Emirates NBD account, and a valid membership to the service.

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What currencies are used for trading on Tadawul?

The only currency allowed is Saudi Arabian Riyals.

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What do I need to trade on Emirates NBD Tadawul?

A valid membership.

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Are there any costs incurred for using the service?

Yes. Emirates NBD Tadawul is a pay service. It carries an annual fee of SAR 1000

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What is Price Protection?

Any freeze or alert based on the recent closing price. All symbols trading on the market will be subject to price controls. An order reject parameter will be in place using the last close price in calculating the 10% up and down trading price restriction. If an order is entered into the system that exceeds 10% up or down from the most recent close price, the system rejects the order.

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What are Price Ticks?

Price ticks are the minimum price increments allowed for order prices. The tick size is also known as the minimum price spread.

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What are price controls?

Any freeze or alert based on the recent closing price. All symbols trading on the market will be subject to price controls. An order reject parameter will be in place using the last close price in calculating the 10% up and down trading price restriction. If an order is entered into the system that exceeds 10% up or down from the most recent close price, the system rejects the order.

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What can be traded on Tadawul?

Only equity instrument types are listed in this market.

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What are Member Accounts?

The member (Company) that opens the member accounts owns those accounts. A member shall have the authority to query the account and transfer securities to and from the account. All clearing and cash management for a member account is the responsibility of the member that owns the account.

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What is the opening price?

An opening price is calculated to determine the first trading price for a symbol for the current trading session. An opening price is calculated once per session, as a method of re-establishing the current market value for a symbol. This is necessary because the market value may have changed since the previous session due to new releases of information or changing economic forecasts. The opening price is calculated based on the following criteria:

  • Share volume
  • Imbalance in share volume
  • Net change in closing price from last trading day
  • Share price

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How are orders matched in the market?

Once the opening price has been calculated the volume must be allocated to orders.The volume is allocated to orders based on their priority.

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Which orders get executed first once the market opens?

Once the amount of volume to be traded is calculated by the trading system, the volume is allocated to orders based on their priority.

  • Market orders have first priority in receiving their entire volume.
  • Limit orders at a price better than the opening price have second priority to receive their entire volume after market orders are completely filled.
  • Orders that have a price (actual order price) equal to the opening price using FIFO
    (First in First Out) method.
  • The remaining orders are matched by ascending order of time stamp (earliest time stamp filled first, also known as 'First In First Out' priority). For orders not completely filled at the pre-open to open transition, this time priority is maintained thereafter during the trading day and for subsequent trading days.

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Which orders get executed first during market hours?

Orders are filled in descending order of priority by the following:

  • Best price
  • Regular terms before special terms
  • Earliest timestamp
The order with the best price always has the highest fill priority.

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What is the new rule in Tadawul Trading?

Recently, Tadawul has announced a number of new rules as following:

  • During the pre-Open period, you can either select a ?Market Order? or ?Limit Order? Type.
    For a ?Market Order? type, you can only select ?At the Opening? Time In Force. For a ?Limit Order? type, you can select ?At the Opening? , ?Good Till Date? or ?Day? Time In Force.
  • During the Opening Market Period, the following orders can be selected:
    For a ?Market Order? type, you can select ?Fill or Kill? or ? Fill and Kill? Time In Force. For ?Limit Order? type, you can select ?Good Till Date?, ?Day? ?Fill or Kill? or ?Fill and Kill? Time in Force.

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What is ?Fill or Kill? Time in Force?

Fill or Kill is a Time in Force type that allows to execute the whole order quantity at the present time, Otherwise it will kill the order (delete it immediately) if it doesn't meet the set order criteria.

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What is ?Fill and Kill? Time in Force?

Fill and Kill is a Time in Force type That allows to execute part of quantity order that meets the set order criteria, while can cancel the remaining part of the order that doesn't meet the selected order criteria.

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How can I buy shares?

Shares can be purchased by filling a Buy Order form requesting the purchase of a specified number of securities. Attributes of the buy order include:

  • Buy securities ?at market? where the current market price is paid for each share (within the TADAWUL price range); or
  • Set a specific ?limit? price at which this order can trade; and
  • Apply time restrictions,defining exactly when and how the order trades.

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What if I do not have enough funds to cover the volume I am asking for?

Prior to acceptance of an order by the trading system the order volume will be verified for the entered account number. This is done to ensure the order can be matched and filled completely and that short selling does not occur.
The volume entered on all sell orders is validated against the account number, account balance in the clearing and depository system before acceptance by the trading system.

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How can I sell shares?

Shares can be sold by filling a Sell Order form tendering an offer to sell a specified number of securities. Attributes of the sell order include:

  • Sell securities ?at market? where you accept the current market price for each share (within the TADAWUL price range); or
  • Set a specific ?limit? price at which you are willing to sell the security; and
  • Apply time restrictions defining exactly when and how the order trades.

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What is a Limit Order?

A limit order is an order to buy or sell a stated number of shares at a specified price, or better.
A Contingent Limit order must be entered in defined tick sizes within a price range.
For example, if the share is trading at 90 and I want to sell when it reaches 105, I can enter a contingent order to sell at 105. However, the tick size may be defined as 0.25 Riyal.
Therefore when entering in the contingent order the price must be a multiple of 0.25.
Changes to the limit price causes an order?s effective time stamp to be changed in accordance with the rules set out for Change Former Order (CFO).

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What is a Market Orders?

A market order is an unpriced order to trade a security immediately at the current best price available in the market.

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Can I change an order I placed?

Yes. You can do so by filling a Change Former Order (CFO) form. A CFO is used to modify an attribute(s) of an order in the system.

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Are there any limitations as to what attributes of the order can be changed?

A CFO cannot be used if the trader wants to alter the symbol, market, or order type. The order must be cancelled and re-entered.

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What effect will changing the order have on the priority of it?

A new time stamp and queue priority is given to the original order if the CFO is used to change the price, increase the disclosed volume, change the account number or add/remove a special term. A new time stamp and queue priority is not given to the original order if the CFO is used to decrease disclosed volume, modify undisclosed volume, or change time in force.

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Can I cancel an order I made?

Yes, by filling a Cancel Order request. A Cancel order moves an active or suspended order to a cancelled state. Once a Cancel order has been issued the original order cannot be retrieved. Cancel Order can only cancel an outstanding order. An outstanding order is an order that is active, suspended or unconfirmed. A Cancel order is rejected if the original order has already traded. If cancelling an order before receiving confirmation that the order has been partially filled, a secondary confirmation is necessary to cancel the remaining volume of the order.

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Can I define how long my order should stay on the market?

Yes. It is by called stating the Time In Force for the order. Traders may set the time for which an order is valid. The trading system provides mechanisms to ensure time restrictions are not exceeded.

  • Day: The order is valid until close of the trading day on which it was entered.
  • Fill or Kill (FOK): This order must be filled in its entirety, or partially, as soon as it enters the market. If an immediate trade is not possible, the order is automatically purged from the trading system.
  • Fill and Kill (FAK): Which means execute the part of qty now and cancel the rest.
  • Good Till Date (GTD): The order is valid until the close of the trading date specified. GTD orders are only accepted if the date is a valid calendar day (e.g. September 33, 1997 can not be entered and will be rejected). Weekends and other non-trading days are valid calendar dates. A GTD order may not exceed 30 calendar days.
All time restrictions are purged from the trading engine when expired.

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If I do not set a Time in Force, what happens to my order?

If no time in force restriction is entered, the order becomes a day order.

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Copyrights 2007 Emirates NBD Capital
Tel: +966-1-2993900
Version 3.16.4