This glossary clarifies the unfamiliar terms in Kooltra, helping you navigate with ease and confidence.
Beneficiary: A beneficiary is the owner of a bank account linked to one of your counterparties. This can be an individual or a business.
Cashflow: A cashflow tracks money movement. In Kooltra, cashflows are created for actions like funding, payments, account adjustments, or settling transactions.
Counterparty: Refers to any party involved in a trade. This can be your clients or liquidity providers. In Kooltra, both are considered "counterparties."
Counterparty Types: This term in Kooltra refers to how different accounts are classified. Each account must be assigned a Counterparty Type, which can be either Individual, Company, or Internal.
Entity: An entity represents a specific business unit or line of business. Think of it as a separate division or department within a larger company.
Forward Limits: The maximum amount of currency a client can buy or sell for a future date when they don’t have enough money in their account to cover the trade.
KYC (Know Your Customer): A regulatory process to verify a client’s identity for AML compliance by collecting ID documents and proof of address. Kooltra handles KYC via Onboarding Forms, capturing and validating all necessary client data, disclosures, and terms.
Margin Group: A collection of margin rules that can be assigned to an account. When an account is assigned to a specific Margin Group, its margin requirements are determined based on the combined rules within that group.
Margin Rule: Defines how much collateral a client needs to maintain their positions. They can be set for individual currencies or currency pairs, ensuring clients hold enough funds to cover potential losses.
Nostro Account: A Nostro account in Kooltra is a cash account you own, typically held with a bank or liquidity provider.
Products: A product refers to the different types of trades you can record. Examples of products include FX Spot, FX Forward/Window Forward, FX Swap, Non-Deliverable Forwards, FX Options, Crypto, and CFDs. These are all trade types that can be managed within Kooltra.
Settlement Methods: In Kooltra, these are the payment options used to transfer funds, such as 'Wire' and 'Cheque.' They represent different types of payment technologies, like how ACH in the US works similarly to EFT in Canada for outgoing bank transfers.
Settlement Types: Defines how trades against a counterparty are settled in Kooltra. Each account must have an assigned Settlement Type: Nostro, Payments, Vostro, Give Up, No Settlement.
Spot Limits: The maximum amount of currency a client can buy or sell right away when they don’t have enough money in their account to cover the trade.
Vostro Account: A Vostro account in Kooltra is a cash account that belongs to one of your clients or counterparties.