As a client you can select how much of your account balance you wish to commit to this investment opportunity, due to a system that uses its best endeavours (under normal market conditions) to terminate trading if it reaches the level you set. This level can be set up to 80% of your initial deposit.
You deposit £10,000, and you select your risk management level at 80%. Meaning you are prepared to risk the other 20% for this type of investment i.e. £2000
As only a small amount of your account balance is committed per trade this means to reach the situation where your capital falls by 20% would need a continued number of losing trades in a row. This can occur with this type of alternative investment.
Trading involves taking regular positions in the market and sometimes in our search for profits we have to accept the market is not on our side.
This can cause a reduction in your account balance and you may see your account balance fluctuate up and down daily.
The risk management system allows you to select how much of your account balance you wish to commit to this investment opportunity as it uses its best endeavours (under normal market conditions) to terminate trading to try and ensure your capital doesn’t fall below the level you set.