We provide our customers with regulated market trading, multilateral trading systems and systematic internalizers, a multitude of different financial instruments, either through the reception and transmission of regular orders or through the Best Trading Pro service.

The following financial instruments are available in the reception and transmission of regular orders service:

Stock — A stock is a transferable security that represents the smallest unit of the share capital of a company, which grants its holders (shareholders) the rights and duties of a partner, proportionally to the shares held. As a general rule, these rights include the right to vote and receive profit (dividends).

Bonds — These are transferable securities whereby the investor provides financing to a public or private entity in exchange for interest paid on a regular basis until the capital is fully repaid by a previously defined date. The interest rate always reflects the risk and the expected return on invested capital (i.e. the riskier the bond issuer, the higher the interest rate it offers).

Rights — A right is a security that gives its holder the right to acquire a certain number (or fraction) of a stock.

Deposit certificates (including ADRs and GDRs) — These are securities representing other financial instruments, typically stocks, which are deposited with a Depositary Bank. The most well-known deposit certificates are ADRs (American Depositary Receipts) traded on a United States stock exchange and GDRs (Global Depositary Receipts) traded on non-United States markets.

Warrants — A security that grants its holder the right, but not the obligation, to buy (call warrant) or sell (put warrant) an asset (underlying asset) at a specific price (strike price) on a pre-defined date (European option) or by that date (American option). Warrants can be exercised, but by exercising the warrant, the investor only receives its intrinsic value, thus abdicating the time value in full. On the contrary, when sold on the market, the investor receives the full value of the warrant (intrinsic value + time value). The evolution of a Warrant's price depends on a set of variables, namely the price of the underlying asset, time to maturity, volatility, dividends and interest rates.
There are two main types of warrants:
Call warrants: Confer the right, but not the obligation, to purchase the underlying asset to which it is indexed at the strike price and on a given pre-defined date, called the maturity date. They are purchased by investors expecting the price of the underlying asset to rise.
Put warrants: Confer the right, but not the obligation, to sell the underlying asset to which it is indexed at the strike price and on a given pre-defined date, called the maturity date. They are purchased by investors expecting the price of the underlying asset to fall.

The warrant ticker consists of the underlying asset, call/put, strike price, maturity date and issuer, in that order. For example, the ticker EDP C 2.00 12-22/SG means:
- Underlying asset - EDP.
- Call/Put - CALL.
- Strike price - €2.00
- Maturity - December 2022.
- Issuer - Société Générale.

Collective Investment facilities (ETFs, REITs, Investment Trusts) — These are financial instruments that result from the acquisition of capital from numerous investors, whereby all of these amounts constitute an autonomous asset, managed by experts who apply it in a variety of assets. Of these collective investment facilities, traded on the regulated market, ETFs are the most well-known, but there are also others, namely Investment Trusts, specific to the United Kingdom market, or REITs (Real Estate Investment Trusts), whose assets are real estate assets.
There are various different types of ETFs, of which the following stand out:
- Trackers: They replicate a certain index or basket of shares, thus allowing for investment in a particular economic sector, in a country or region in a single transaction. They are intended for investors who want to reduce risk, as they avoid the risks inherent to investing in just one company or sector.
- Leveraged trackers: Replicate the performance of a specific index or set of assets. They pursue better performance than the variation in their underlying assets, usually through derivative instruments.
- Active management: Investment teams select an asset portfolio based on pre-defined strategies, research and investment processes. The underlying index is replicated by investing in the assets in the portfolio, thus allowing greater returns on the underlying asset, in addition to risk and volatility control.
- Exchange Traded Commodities (ETCs): They replicate the performance of indexes of certain commodities or allow for direct exposure, without trading in futures or physically delivering commodities, such as gold, silver, nickel and zinc.
- Inverse: Securities traded on the stock exchange, the performance of which is contrary to the evolution of the associated underlying asset. They benefit from momentary downturns in the stock markets. Inverse ETFs should be considered from a short-term perspective, in order to benefit from any one-off market depreciations.
- Leveraged inverse (Ultra Short): These ETFs assume the same characteristics as Inverse ETFs, with an associated leverage factor. They replicate the inverse position of the daily behavior of the underlying asset two-fold.
- Exchange Traded Notes (ETN): These are non-guaranteed debt securities, linked to the performance of a given index. They were created with the objective of combining the characteristics of a bond and ETFs. The main risk factor affecting the value of ETNs is the issuer rating: If the issuer's rating is revised downward, even if there is no change in the underlying index, the ETN may decrease in value.

In addition to the national market, Best Bank gives you access to a whole host of international markets, either through our reception and transmission of regular orders service or through the Best Trading Pro service.

The following regulated markets are available in the reception and transmission of regular orders service:

Euronext Lisbon

Madrid Stock Exchange

Euronext Paris

Euronext Amsterdam

Frankfurt Stock Exchange

London Stock Exchange

Nasdaq Stock Exchange

New York Stock Exchange

Euronext Brussels

Furthermore, as regards the trading of Warrants, in addition to Euronext Paris, two other unregulated markets are also available as multilateral trading systems, for off-market over-the-counter (OTC) trading.

CATS-OS: Non-regulated market for over-the-counter trading of securities issued by Citigroup Global Markets Deutschland AG

iCOM: Non-regulated market for over-the-counter trading of securities issued by Société Générale.

As regards the Reception and Transmission of Orders on Debt Securities (Bonds or Notes), in addition to trading on Euronext Lisbon, off-market trading is available through multilateral trading systems or through systematic internalizers.

All information regarding the regulated markets listed above, including how the market operates, or any information developed about the companies listed on national or international markets can be accessed through their respective websites.

More information regarding the markets facilitated can be found in the Best Bank Reception and Transmission of Orders Policy.

Any potential orders to be executed through Best Bank depend on the market in which you are operating and the instrument to be negotiated.

With Euronext Lisbon, you can execute market orders (best-price orders), fixed-price orders, stop-loss orders and stop-limit orders. Bonds are different, and only fixed-price orders are available.

In other regulated markets, only market orders and fixed-price orders can be executed.

In the warrants trading platforms, CATS-OS and iCOM, only request for quotation (RfQ) orders are available. Depending on the request for quotation, and on the price provided by the market maker, you may accept or reject the price indicated. For more information on trading on these platforms, you can consult the General Conditions for Trading Warrants on non-regulated markets.

The only order that has priority in terms of execution is a best-price order. This will be the first order to be executed when entered into the stock exchange regardless of any pending orders. What's more, stop-loss orders are activated when the quotation from the latest trade executed on the stock exchange corresponds to stop trigger. Once activated, the stop-loss order becomes a best-price order, thus taking priority over other pending orders on the stock exchange.

It is worth noting that orders cannot be matched in any of the markets, i.e. you cannot place an order that only becomes active after another order has been executed. As such, only once you have confirmed that a buy order has been executed will you be able to activate a sell order on those same securities. Similarly, after confirming execution of a sell order, you can use the capital from that sale toward a new security.

Lastly, if the Customer wishes to change a pending order of any kind, they may do so by canceling the pending order and placing a new order.

Market orders or best-price orders
A best-price order is executed immediately, pursuant to market conditions at the time. These conditions can be tracked in the "Market depth" section, where the best buyers and sellers available on the market at that time are listed.

Fixed-price order
In a fixed-price order, the Customer can set the maximum price (for purchase) or minimum price (for sale) at which the order is to be executed. This will result in their order being included in the market. If current market conditions allow, the order will be executed immediately. If their desired conditions are not met at the time, they can check the entry of their order against the "Market depth." The order will be placed as soon as market conditions allow.

Stop-limit order
Stop-limit is a type of operation used by investors who want to limit any losses in their securities portfolio or take advantage of a well-defined market trend, in particular through technical analysis. Investors use stop limit to set an order activation price — the stop trigger. The order will only be placed on the market when the activation price is reached. However, Customers also set the limit price at which the order should be placed. For the buy order, the limit price must be greater than or equal to the stop trigger. Customers buy if the price surpasses the stop trigger, up to the maximum limit price.
Example 1 — Buy 500 shares, with a stop trigger of €13.50 and limit price of €13.75. This order can be read as follows: if the share reaches €13.50 (currently below this value), an order to buy 500 shares will be activated automatically up to a limit price of €13.75. Investors can use the stop-limit buy order to try to take advantage of initial movements with a well-defined trend. For the sell order, the limit price must be less than or equal to the stop trigger. Customers sell if the price falls below the stop trigger, up to the minimum limit price.
Example 2 — Sell 200 shares, with a stop trigger of €12 and limit price of €11.50. This order can be read as follows: if the share reaches €12 (currently below this value), an order to sell 200 shares will be activated automatically up to a limit price of €11.50. Stop-limit sell orders assume that the investor holds the securities in question. Investors can use stop-limit sell orders to protect their portfolio from potential capital losses

Stop-loss order
Like stop-limit orders, stop-loss orders are a type of operation that allows investors to limit any losses in their portfolio or to take advantage of a well-defined market trend.
Stop-loss is similar to stop-limit. The difference is that stop-limit represents a price-limit order, while stop-loss represents a best-price order. Like stop-limit, stop-loss applies to buy orders and sell orders. In a stop-loss order, the Customer can set the price (stop trigger) at which their order will be sent to the market. In a stop-loss buy order, the Customer sets the order so that it goes to market as a best-price order when the latest trade executed is greater than or equal to the stop trigger set. The stop trigger set should also be higher than the latest verified price. As with a stop-loss sell order, the order is set so that it goes to market as a best-price order when the latest trade executed is less than or equal to the stop trigger set. In this case, the stop trigger should also be lower than the latest price verified.
Example 1 — Buy 500 shares, through the stop-loss option with a stop trigger of €13.50. Once the price reaches the stop trigger, an order to buy 500 shares at best price will be activated automatically.
Example 2 — Sell 200 shares, through the stop-loss option with a stop trigger of €12. Once the price reaches the stop trigger, an order to sell 200 shares at best price will be activated automatically. Stop-loss sell orders assume that the investor holds the securities in question. Orders with a stop option are only available for Euronext Lisbon.

Investment is not a risk-free activity, and a whole host of risk factors can influence the results you will get. In the context of the capital market, risk corresponds to the degree of security inherent to an investment and its return, and is often used as a synonym for volatility (variability) in the level of return presented by each security. The level of risk is directly proportional to the aforementioned degree of volatility. However, the risks associated with investment are not limited to price volatility and, as such, of the set of risks associated with investing, the following are deemed to be the most relevant:

Market risk: Risk that the market value of an asset or a set of underlying assets or a reference rate will vary (specifically, due to fluctuating interest rates, exchange rates, stock prices or commodity prices) and that this will have an impact on the return on the investment made;

Capital risk: Risk that the investor will receive a lower sum than the capital invested;

Liquidity risk: Risk of having to wait or incur costs (namely due to having to sell at a lower price than the actual economic value) to turn a given financial instrument into cash. This risk is particularly relevant in financial instruments that are not traded on a regulated market, off-market or over-the-counter (OTC) instruments, instruments with lower trading volumes or instruments dependent on a small number of market makers. And even for assets traded on the market, their liquidity may vary over time, with lower trading volumes or even the withdrawal of open company status (delisting from the market);

Exchange rate risk: Risk of negative impacts on the return of the financial instrument due to adverse exchange rate fluctuations. In such a case, appreciation of the investor's base currency against the currency of the financial instrument may result in a significant depreciation in the value of the investment;

Credit risk: Risk that, namely due to the bankruptcy, insolvency or financial incapacity of the issuer of the financial instrument, or of the issuers of the set of underlying assets, the obligations inherent to a particular financial instrument (namely the payment of interest and return of capital) will not be fulfilled in due course. Bankruptcy, insolvency or financial difficulties suffered by a third-party entity (e.g. guarantor) may also affect the financial instrument's return, as this also poses a credit risk for such entity. In a debt restructuring scenario, the investor may have to convert the bond into transferable securities of a different nature and risk (e.g. stock) and that have substantially different conditions and risks. In debt instruments, credit risk influences the evolution of interest rate spreads, which in turn translates into changes in the price of the instrument;

Interest rate risk: Risk of negative impacts on the return of a financial instrument due to adverse interest rate fluctuations. In a debt instrument, such as a bond, an increase in interest rates, whether by raising the interest rate or by raising the spread associated with the issuer's credit risk, will result in that bond falling in price. This risk not only affects bonds; warrants, ETFs and stocks also see their price fluctuate depending on the evolution of interest rates;

Counterparty risk: Risk that an entity (other than the issuer) party to a contract or operation, such as a purchase or over-the-counter (OTC) sale, fails to fulfill the undertakings entered into, per the original terms of that undertaking, without this posing a credit risk to the financial instrument. In off-market transactions (OTCs), given the absence of a clearing house and a settlement center, there is a risk of delay in the settlement of transactions;

Operational risk: The possibility of losses resulting in particular from internal processes, human error, or faulty external systems or processes;

Legal and tax risk: Risk of changes in legislation, including taxation legislation, and other applicable regulations that impact the financial instrument's return.

To mitigate the various risks to which your investments may be subject, diversification is key. Try to diversify your investments through different assets, sectors, regions and counterparties, so as to not only be less dependent on the performance of a particular investment or risk factor, but also because diversification allows you to profit from negative correlations between investments, thus reducing the overall risk of your portfolio. Other factors to be taken into account in a risk mitigation approach include investing with a medium- or long-term perspective, which typically generates a lower degree of risk than short-term investment and a higher chance of a positive return on your investment, and having discipline when investing, either through regular investments or setting loss limits, which require you to cut losses and reduce exposure if your investments depreciate.

As a general rule, stock exchange share prices show a lag of more than 15 minutes. To access real-time share prices, you must subscribe to the respective service at: My Area > Preferences > Subscribe for real-time prices on Stocks, ETFs and Warrants. From there, you can select the markets you want to track regularly.

Access to real-time share prices is subject to prior subscription to the terms and conditions of the service, and is solely for private customers.

Indexes are statistical measures indicative of the general state and performance of a financial market, stock exchange or economy. When we talk about stock market indexes, we refer to indicators of the change in prices in a market over time, which allows us to calculate the profitability of that market between any two times when the index was calculated. Stock market indexes typically comprise listed baskets of securities and calculate a weighted average of the share prices of these securities and their variations.

In Portugal, the main stock market index is the PSI20, which includes the 20 largest and most representative companies listed on the Portuguese stock exchange. In international terms, the main indexes are:
In the USA, Nasdaq (which includes technology companies), Dow Jones (30 largest industrial companies) and S&P500 (500 largest American companies);
in Europe, DAX (Germany), CAC (France), IBEX (Spain), MIB (Italy), AEX (Netherlands) and FTSE (UK);
in Japan, Nikkei;
Dow Jones Indexes SM are owned and distributed by Dow Jones & Company, Inc. and are licensed for use. All contents of Dow Jones Indexes SM © 2006 are the property of Dow Jones & Company, Inc.

See the terms and conditions of the Dow Jones Indexes.

Best Bank does not directly create, sponsor or facilitate transactions involving financial instruments or investment products (including derivatives, structured products, investment funds, market trading or over-the-counter trading) on its business platform. Its underlying assets are market-traded investment funds whose price, return and/or performance is determined based on, in relation to, or in conjunction with, any index published by Dow Jones or financial instrument or investment product indexed to an index published by Dow Jones, such as services provided by third parties.

The average purchase price is calculated at the end of each day and is based on all purchases made since the security was first listed. If the security remains in the portfolio, subsequent purchases are considered for the average purchase price.

If a Customer buys 100 ABC shares at €2 on a given day, and then buys 100 ABC shares at €3 the next day, the average purchase price will be €2.50 ([(100x2)+(100x3)]/(100+100)=2.50). If the Customer then sells 100 ABC shares (100 shares remain in the portfolio) the average purchase price calculated remains €2.50.

Thus, the FIFO criteria does not apply to the average purchase price. If the Customer has a position in the portfolio and, on a given day, buys and sells the same security, the average purchase price will change based on the previous purchase and the purchase made on the day.