UTEX—Margin has a built-in risk management system to help limit losses. It uses a loss limit: the maximum total loss you can incur in a trading day.
How the loss limit works
If your total daily loss exceeds your loss limit, or your balance reaches zero or becomes negative, positions are closed automatically at the market price and trading is blocked. Fees and other payments count toward your total loss.
Your current loss limit is always shown on the trading screen. The default depends on the market:
You can set the limit as a specific amount and change it as often as you need.
What happens when positions close automatically
If you exceed the limit or your balance reaches zero or becomes negative:
New orders are blocked.
All active orders are canceled.
Positions are closed at the market price.
On the stock market, positions are not closed automatically during the first 3 minutes of the main session.
How to resume trading
You can resume trading in one of the following ways:
Increase your loss limit if it is below the maximum.
Add funds to your account.
Wait until the next trading day. Your loss and limit are recalculated, and you can trade again.
Other reasons positions may be reduced or closed
The stock market has an Night Threshold. If the combined value of your open positions exceeds it at market close, the risk management system may reduce your positions.
On Goods+, a contract rollover can trigger automatic position closure if the risk management conditions are breached.
There is no Night Threshold on Crypto or Goods+. Positions on these markets can still close automatically under the risk management rules.
How to manage risk
Experienced traders need to weigh potential returns against the risks, especially the risk of losing money. This is known as risk management.
Some basic tips:
Limit the share of your account that you commit to any one position.
Do not use the full amount available for leveraged trading. The more leverage you use, the greater your potential loss from price movements.
When trading stocks, stay within your Night Threshold.
Use stop orders. They help automate your trading, protect profits, and manage risk, especially during periods of high volatility.
Watch your losses. If they approach your loss limit, add funds or reduce your open positions.
Broaden the range of assets you trade. Diversifying within reasonable limits reduces your dependence on any single asset.