What is the Protection Level in FXTM Invest?
What is the Protection Level in FXTM Invest?
One of the best features of FXTM Invest is that it allows Investors the opportunity to have control over their funds. Namely, Investors can set a limit to their investment themselves, as a way to mitigate risk and protect their equity. This is called Protection Level. If the Investment Account’s equity falls below the Protection Level, Investors can choose to have all open positions closed automatically at the next available market price. By default, the level is set at 50% with the action “Pause investment and send email notification”.
Alternatively, Investors can manually close their open positions if they select “Send email notification”. Someone who is less risk tolerant may choose to set the Protection Level at 80%, for example. If the equity falls below 80%, all open positions are either closed automatically or by the Investor (depending on the Investor’s preference).
Investors can also reset Protection Levels depending on the Investment Account’s equity. For example, if an Investor deposits 10K, he can chose to reset his Protection Level to 60% once the equity of his account reaches 20K.
It’s important to note that Protection Levels are not guaranteed during hours of extreme Market Conditions.
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