Risk Management

  • Q: How do I reduce my risk?

    There are a number of ways of managing or reducing the risk associated with trading.

    Reduce your leverage: decreased leverage reduces your trade exposure, potentially lessening the amount of capital at risk. Try reducing the trading leverage for any given instrument below the default level of 50:1 or 2% margin (note: this can only be done prior to any positions being opened in that particular instrument). 

    Here are some more of the most commonly used risk management strategies:

    • Reduce your position size
    • Partially close an existing trade
    • Open a hedge trade
    • Open a partial hedge trade
    • Add a linked stop
    • Any combination of the above