What is Maximum Loss and how does it work?
26 Nov 2018
Maximum Loss is a risk management tool set in place to protect your investment within a particular strategy. As investments can vary slightly up and down, it is important to minimize your losses, should the strategy not perform well.
Maximum loss works the following way - in case the strategy loses in value what you have pre-defined as stop-loss, the system will automatically stop copying the strategy for you. You will be notified if an investment is approaching your Maximum Loss value, as well as in case it hits the value and copying is disabled. In case you wish to continue copying, you will have to manually adjust the Maximum Loss parameters for the specific strategy.
Stop loss is mandatory for each strategy you copy and we have pre-set for you recommended values. Yet, you can alter those to match the amount you are willing to put at risk.