Risk Management

Trading in the foreign exchange market carries some risks and can cause you part or complete loss of your funds. The degree of risk depends on many factors. Manually controlling these factors is an objectively difficult task.

We have developed a unique risk management system that protects investors from unplanned losses and additionally controls managers, freeing them from psychological stress.

The manager sets part of the limits (mandatory part of the system). These limits are mandatory and pre-defined for investors. The investor can establish personal risk management limits (additional part of the system).

Graphic presentation of the risk management system functioning

Freeing the managers from psychological stress
A manager cannot alter the parameters of risk management limits at will directly in the course of trading. As a result, the probability of deviating from the trading system and the chance of an increase in risk are all minimized. The manager is protected from committing mistakes caused by the impact of strong emotions.

Additional risk management
Some investors have extensive experience and knowledge in portfolio management. So when needed, the investor can adjust the limits of risk management parameters at his/her discretion.
The risk management system does not depend on managers
The manager cannot alter the risk management parameters at any time. As a result, the investor's loss is prevented from exceeding the regulated level at the moment the investor invests in the managed account. Parameters are changed only with the consent of ICE Markets and after all the investors involved have been notified and provided with the opportunity to stop working with the managed account until such changes come into effect.
Simplified portfolio management calculations
Thanks to loss limits, the investor can make accurate calculations related to distribution of portfolio shares between managed accounts and risk level of the portfolio and its components.

Risk management limits can be set in the managed account settings in the personal profile.

The risk management system allows to set the limits of 5 different parameters – once any of these parameters is triggered, trades will be closed at the current market quotes, and trading activity will be blocked for a certain time.

Established
by the manager

This limit is similar to the "maximum weekly loss" limit. It limits the maximum loss for the day. This limit is calculated based on the equity value at the beginning of the trading day, regardless of how much the account equity grows within this period (unlike the maximum drawdown limit, which is calculated based on the maximum equity after this limit has been set).). It is expressed as a percentage of the deposit.

Set by
the investor

The maximum drawdown limit is calculated based on the maximum value of the account equity in existence after this limit has been set. If after some time the account equity falls to the value of the established maximum drawdown, this limit will be triggered (comparable to Trailing Stop in the MT 4 terminal). It is expressed as a percentage of the deposit.

It indicates the minimum amount that when reached, limit will be activated and trading on the account will stop. It is expressed in the currency of the deposit.

Schematic diagram of the functioning of risk management parameters

	Kind of limits	Baseline	Limit conditions	Trade continuation (not earlier than)	When parameter changes come into force
	Kind of limits	Baseline	Limit conditions	Trade continuation (not earlier than)	Reducing the Limit Value	Increasing the Limit Value
Restriction is established by the manager	Maximum loss limit for the day ⁴	The value of the account equity at 00:05 (EET) of the current trading day	The value of the account equity (in percent) falls by the size of the given limit	00:05 (EET) of the next trading day	00:05 (EET) of the Monday of next week	00:05 (EET) Monday of the following week
Restriction is established by the manager	Maximum leverage limit ^{1, 3}				00:05 (EET) Monday of the following week	00:05 (EET) Monday of the following week
The restriction is established by the manager and can be changed by the investor	Maximum weekly loss ^{1, 2}	The value of the account equity at 00:05 (EET) of the Monday of the current week	The value of the account equity (in percent) falls by the size of the given limit	00:05 (EET) of the Monday of next week	Change is initiated by the manager: 00:05 (EET) Monday the week after the current week (the soonest weekly rollover + 1 week) Change is initiated by the investor immediately.	Change is initiated by the manager: 00:05 (EET) Monday the week after the current week (the soonest weekly rollover + 1 week)

Rating of Managed Accounts

Note!

Past performance does not guarantee future results. ICE Markets cannot guarantee your future results and/or success.
ICE Markets provides only managed account service for investors and managers. The company is not a representative of any of the parties to trust management.
ICE Markets does not participate in managing the funds of clients that are investing in managed accounts.
Leveraged investing exposes an investor to higher risk and can lead to complete or partial loss of one's funds.
If you do not fully understand the investment process or the degree of risk you may be exposed to, consult a third-party specialist for advice.
The minimum amount required by a manager to open a managed account is $300.

Risk Management

Graphic presentation of the risk management system functioning

Benefits of the risk management system

For the manager

For the investor

Types of limits

Maximum leverage limit

Maximum daily loss

Maximum weekly loss

Maximum drawdown

Minimum balance

Schematic diagram of the functioning of risk management parameters

Risk Management Schedule

Note!

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