Risk Management Tools
Tools to manage your Risk successfully
- Limit and Stop Loss Orders
- Account Leverage Management
Account Leverage Management
Ainvesting risk management tools allow you to be flexible and trade with high, low or no leverage at all. Tradercan deposit and withdraw funds and fully control his Equity. Trader is also able to open and close positions using the strategy of his choice. He/She completely controls his trading decisions. Open My Account page to be able to view trading Equity and other data related to your account. “My Account” is on the left side on Main Page.
You deposit $200,000 (your Equity is $200,000) and then you buy Oil worth $200,000. You are now trading with a leverage of 1 (no leverage).
You deposit $20,000 (your Equity is $20,000) and now you buy Oil worth $200,000. Now you are trading with a leverage of 10.
Please be aware that a night premium is paid for any position that is held overnight.
Stop Loss, Take Profit and Limit Order
- Stop Loss Order – Can be added to trades before they are opened or by editing an open position. Traders are able to set an exit point for a losing trade.
- Take Profit Order – The opposite of a Stop Loss Order, traders are able to set an exit point for a winning trade.
- Limit Order – Traders are able to open a position with an order to buy or sell at a predefined rate. The trader’s objective is to buy or sell at a better price than the market rate.
A Quick Example:
Amazon shares are traded at $305.95 / $306.95 (Sell/Buy)
You buy 15 shares of Amazon.
You want to limit your loss to $150.
You place a Stop Loss order price of $296.95.
Amazon gaps down to $296.95 and then to $292.
Your position will be closed at $296.95.
Your loss is: 15 x (306.95 – 296.95) = $150.