Definition

Armaiti Mex (Armaiti Mercantile Exchange): It is a platform driving trading events for sales and purchase of petroleum, petrochemical, mineral and metal products, through which operations related to transactions such as entering and registering sales and place orders, matching orders and finally carrying out the transactions.

Bid: A submission of a price by the bidder on an auction.

Bidder: A verified person/company that can place a bid on a transaction according to the terms of this instruction.

User ID: The Trading System identifies a unique ID for the registered buyers and sellers.

Trading System: The trading system operated by Armaiti Mex for carrying out the transactions.

Sales Notice: A notice to inform buyers about the trading conditions of commodities, which is published according to the format and the terms of this instruction three working days earlier on Armaiti Mex.

Commodity: A Specified product to sell through accepted seller according to Armaiti Mex terms.

Sales Order: A request to sell commodities that are submitted by the seller.

Purchase Order: A request to buy commodities that are submitted by the bidder.

Trading Session: It is a period of time through which commodity transactions are carried out based on the terms of this instruction.

Working Hours: Any hour on which the trading system is open for dealing. It starts from Monday - Friday, 9:00 A.M. to 4:00 P.M.+0.00GMT, except for official holidays in the UK.

offered Price: The lowest price at which the seller is prepared to sell commodities during trading session.

Bid Price: The highest quoted price at which a buyer is prepared to buy commodities during trading session.

Minimum Order: The minimum amount of any commodity that one can sell to buyer in a transaction.

Maximum Order: The maximum amount of any commodity a buyer can buy in a transaction.

Force Majeure: Force Majeure are external, unavoidable and unforeseeable events that with their occurrence both buyers and sellers are unable to fulfill their obligations.

Auction: It is usually a process of buying and selling commodities by offering them up for bids, taking bids, and then selling the item to the highest.

Sales Offer Form: A form on the sales of a specified commodity that seller shall fill and submit it to Armaiti Mex.

Allowed Delivery Tolerance: The allowed amount of difference in the weight or quantity of the delivered commodity compared to the determined amount for each commodity in the Sales Notice.

KYC or ‘Know your customer’: It is a verification process to verify the authenticity of sellers and buyers.

Start Date: The date and time at which the event becomes open for bidding.

End Date: The date and time the event closes meaning that bids are no longer accepted.

Bid Increment: the minimum amount you can bid above the current bid price. A bidder can place a bid that is just greater than bid increment.

Fixed Price Contract: A type of price that the seller sets a fixed price for selling commodity.

Formula Pricing Contract: A type of price that the seller determined a formula for selling commodity based on the discount, flat and discovered premium.

Target Market: A target market shall be defined by the seller.

Seller: A person/company that is confirmed for selling commodities.

Buyer: A person/company that is confirmed for buying commodities.

Physical transaction: A transaction that will be done between the seller and the buyer after the initial transaction in the trading system.

Transaction Certificate (TC): A document that is issued at the end of the trading session and is submitted to the buyer and the seller to pay the determined commission.

Clearing House: A financial institution formed to settle the transactions and to facilitate the exchange (i.e., clearance) of payments. Its purpose is to reduce the risk of a customer failing to honor its trade settlement obligations.

Spot contract: A type of contract on a single shipment sale where the buyer and the seller agree to trade the commodity at specified price and delivery.