Risk Management

Risk management system allows you to set restrictions on 5 different parameters, if any of them is realized, positions will be immediately closed at current market quotations and trading will be blocked for a certain period of time. Setting any of the restrictions is not mandatory.

Maximum leverage

Ability to limit the value of maximum leverage.

Maximum losses per day

Limits the maximum loss for the day, calculated from the equity value as of the beginning of the trading day, regardless of how much the account equity increases during this period. (As opposed to the "maximal drawdown" restriction, which is calculated from the maximal equity value after setting). It is expressed as a percentage of the deposit. It is analogous to the limitation "Maximum loss for the week".

Maximum losses for the week

This is analogous to the "maximal loss per day" restriction. Limits the maximum loss for the week, calculated from the equity value at the beginning of the trading period, regardless of how much the account equity increases during this period. (Unlike "maximal drawdown" limitation, which is calculated from the maximal equity value after setting). It is expressed as a percentage of the deposit.

lim(Loss(W)) - limitationmaximum losses for the week20%10%0%-10%Change equityTime
Maximum drawdown

The calculation is made from the maximum equity value of the account, fixed after setting this limit. If, after some time, the equity value of the account falls to the size of the set maximum drawdown, this restriction will be implemented. It is expressed as a percentage of the deposit.

30%20%10%0%Limiting equityTimelim(max(DD)) - limitationmaximumdrawdowns
Minimum balance

Specifies the monetary value of the minimum amount, upon reaching which the restriction will be implemented and trading on the account will stop. It is expressed in the currency of the deposit.

lim(Loss(W)) - limitationmaximum lossesin a weeklim(Loss(W))lim(Loss(W))LWMLWM (Low watermark) - minimum limitfund balance12320%10%0%-10%Change EquityWeek

Schematic representation of risk management parameters

____
Equity
lim(max(DD)) (20 %)
maximum drawdown limitation
lim(Loss(W)) (10 %)
limitation of maximum losses for the week
LWM (Low watermark) (800 USD)
minimum balance limit

Functional features

After enabling the risk management functionality, certain restrictions are imposed on deposits and withdrawals from the trading account:

Requests for deposit and withdrawal of funds from the trading account are accepted only on weekends. Direct deposit or withdrawal of funds is made at the beginning of the trading week (Monday 00:05 (EET)) with automatic correction of risk management values (in money equivalent: the share ratio in the absence of an application to change risk management parameters is not corrected).

When withdrawing funds, it is necessary to take into account the parameter "minimum balance" (if it is set). Since the "minimum balance" is a fixed value in the currency, the withdrawal of the amount, minus which the equity of the trading account becomes less than the value of the "minimum balance" - the realization of the latter will occur and trading on the account will be blocked at the time of withdrawal (Monday 00:05 (EET)).

Orders to change risk management parameters are executed at the beginning of the trading week (Monday 00:05 (EET)).

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