FREQUENTLY ASKED QUESTIONS (FAQ)

What is the difference between 'Margin' and 'DVP' (delivery will occur only if a payment occurs) Accounts?
A Margin account is an account where an investor only needs to keep a portion of the funds as a margin of the total amount with the stockbroker to process his/her trades at the Exchange. It means that the customer places a decided percentage (mutually agreed upon between the investor and the broker prior to operating the account) of the funds with the broker against the net total value of his/her trades carried out through that broker at the stock exchange. The margin amount in essence along with the shares purchased serves as a collateral that the investor maintains with the broker to carry out his/her transactions. The Margin amount varies from broker to broker. Cash accounts are different from margin accounts in a way that the amount deposited by the account holder is fully used. This means that the Account Holder can only buy/sell shares equal to the funds deposited by him/her with the broker.
What is Equity?
Equity is the ownership of shares in a corporation in the form of common stock or preferred stock. It also refers to total assets minus total liabilities, in which case it is also referred to as shareholder's equity or net worth or book value.
What are Stop Loss Orders?
Stop Loss trading is a form used to prevent unusual and large amount of losses. It allows the client to place a rate below current market price if there is a drop expected.
What is the procedure to cancel pending orders during system failure?
In case of IBTS System Failure due to any Reason, investors can always use our Landline Phone Numbers to place, cancel, or inquire about their pending orders. Our Trade Officers can perform this on your behalf after your instructions.
I already have a CDC Investor’s A/C, what is the procedure to transfer shares from my CDC Investor’s A/C to my Fair Trade Securities A/C?
You will have to provide a CDC cheque (Transfer Order) to CDC Head Office in favor of your sub-Account at “FAIRTRADE. You need to provide our Participant ID and your sub Account Number for this purpose. Shares can only be transferred from Your investor account to your sub-account with us only if both UIN matches (UIN of Investor Account must be same as UIN of CDC-Sub Account with FairTrade).
Can I transfer my securities from my FairTrade A/C to my A/C at other member’s A/C?
Yes, we will need the CDC account holder’s participant name and ID and also a written request to transfer the security. However, you must ensure that your account isn’t in debt; otherwise we would not be able to transfer your securities to any other account. (Note: Transfer of shares can only occur if both the UIN matches).
Does FAIRTRADE accept physical shares?
Yes, physical shares are acceptable at FAIRTRADE Trade. Physical Shares in your name will be converted to CDC Format and transferred to your FairTrade Account.
What is the procedure to convert physical shares into CDC shares?
  • Physical shares must be in the name of Account Holder.
  • Copies of CNIC must be submitted at the time of request.
  • All transfer deeds of physical shares must be VERIFIED by the company's registrar.
  • Conversion of shares may take around 3-4 working weeks.
  • You can also open your Fair Trade Securities account with the physical shares.
What is a 'Symbol'?
A symbol is a unique, market-approved code that identifies a particular security on an exchange. The symbol generally reflects the name of the security. For example, the symbol for the Netsol Technologies is NETSOL. This is also known as the 'ticker symbol'.
What is 'Real Return'?
Real return can be defined as the return on an investment after taking inflation into account. To calculate the real return, simply subtract the inflation rate from the stated return. For instance, a 12 percent annual return in a year of 5 percent inflation results in a 7 percent real return.
What is Relative 'Strength'?
It measures the price performance of a stock in comparison to all other stocks. Many analysts believe that stocks with strong and improving relative strength tend to continue to outperform all other stocks, all other things being equal. It’s a bit confusing term in a technical analysis jargon. Relative strength index most commonly known as RSI is calculated measuring stock’s internal strength instead of comparing other stocks.

Rank of 20/30 is considered as oversold level while a rank of 70/80 is considered overbought level.

Note: it is not a standalone indicator, it must be used with other indicators.
What does YTD stands for?
YTD is an abbreviation for year-to-date.
What is a 'Limit Order'?
When you instruct your broker to buy shares for you at or below a certain price, or sell shares at or above a certain price, you've entered a limit order. Limit orders reduce the risk that an order will be filled at a price you don't like, and best suit the investors' interests in volatile markets. The down side, of course, is that by waiting for your price the stock you want gets away from you, or the stock you want to unload just keeps falling. The opposite of a limit order is a market order, in which the broker is instructed to execute the trade at any market price available.
What does 'Earning per Share' mean?
Net income divided by common shares outstanding. A company that earns Rs.1 million for the year and has a million shares outstanding has an EPS of Rs.1. This EPS figure, which represents how much of earnings each share is entitled to, is important as the basis for various calculations an investor might make in assessing a stock's priceless. It is the most widely used indicator to show whether a stock is over- or undervalued, for example, is the price/earnings (P/E) ratio, which relates share price to earnings per share.
What is a Margin Call Alert?
This generally happens when a client using a margin account, utilizes almost his entire trading limit and the value of the scrips held are declining in price per share. As the price declines, it reflects negatively on the actual cash holding. Scrips are organized in nature by classes under margin values (Class A to E that varies from 20% Margin to 100% or No Margin). These can be found under 'Portfolio' in the client account.
We have
How are my orders processed and settled via internet?
Your orders placed through the internet (via TradeCast, Mobile Applications or Call Centre) are received at our server and immediately sent to the PSX via Fix Protocol for further processing.

If accepted, the order is queued for execution and upon successfully matching the rates of corresponding buyer/seller (as the case may be), it gets executed.

Although transaction is done on real time basis but the delivery of the securities is received in your CDC Sub Account on T+2 System (in case of buying) and vise versa in selling.
What are the risks of securities trading?
All the risks related to the securities trading have been appended in the Brokerage Account Agreement of the FairTrade Opening Form , which can be accessed by clicking on its hyperlink.
How do I place/cancel my orders when I am unable to login into the software?
In case, you are unable to place/cancel your orders via internet, you may still place your orders via calling our landline telephone lines.
Where do I find the relevant rules and regulations governing securities trading, information regarding rights and obligations of the Investors, relevant legal provisions for Investor Protection, complaint handling and arbitration procedures, etc?
We have the PSX Rule Book in the Download Section of our website, which contains all the relevant information. However, if you require any specific details, you may call us at our Landline numbers or email us at info@FairTradecap.biz for further assistance.