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How to do risk control

{}Posted in2023/2/25 12:07:32 | 6Browse

In foreign bestforexrebatecompany trad forexrebatecommissiong, best forex rebate company cashback forex has been the industrys top priority not only includes foreign exchange brokers on the platform r fxrebatecentralk rebatesforexbroker customer investment risk control, but also includes the investors capital management strategy and risk control plan Foreign exchange broker risk control management For brokers, risk control is a very important thing many brokers will not do a good job because of risk control. The stability of the trading system will directly affect the level of risk of the foreign exchange broker for example, the speed of the order and the transaction is too slow to seriously affect the user experience, will also bring a chain reaction, resulting in the broker may need a lot of costs to deal with customer complaints Therefore, the trading system is not stable, in addition to the possible loss of customers, but also Therefore, it is very important to choose a good quality, technically sound technical service provider, which can make the users trading process easier and better experience 2. Data and network security The backend server and system support is also quite important Every year the foreign exchange industry always happens hacker attacks, hackers The invasion of a serious threat to the broker and its customers capital security, malware can control the browser to the computer remote control, but also through a distributed denial of service attack and lead to security system down in order to avoid such network security, brokers in addition to maintenance and upgrades to strengthen their own network security and effectiveness, it is necessary to do early preventive measures 3. Terms Foreign exchange brokers in foreign exchange transactions to choose to receive and pay the currency will be different with the different currencies lead to bear the risk is also different, brokers generally use the exchange rate is strong, freely convertible currency, because more resistant to potential risks U.S. dollar is the most commonly used foreign exchange brokers denominated currency this hard currency can be entered into with the customer currency preservation terms, that is, the provisions of a currency or a group of currency preservation and the national currency between The ratio, such as payment when the exchange rate changes more than a certain margin, the original exchange rate adjustment, to achieve the purpose of value preservation 4. Liquidity channel back-up program broker liquidity generally from large banks or liquidity providers, but do not exclude that they will also be quoted wrong or delayed quotation phenomenon light to incur customer complaints; heavy investors huge losses, brokers a large Therefore, brokers generally work with multiple liquidity providers at the same time to avoid the risk of failure of a single quote source Risk control for individual investors 1.Set risk tolerance In forex trading, many people do not think carefully when they may misjudge the amount of risk they can take, so you should set effective risk parameters most The most common way is to set the percentage of funds used, how much proportion of the funds used in each transaction, each time you encounter a loss when the amount of loss reached their own how much proportion of the stop loss to leave the field, increase the position each time the amount of increase in the position how to set, etc., for these in advance to do accurately, when the transaction is strictly enforced, you can largely reduce the risk of trading 2. Plan is the total combat guidelines developed before trading, according to the plan can be step by step, steady and methodical operation trading plan mainly includes market analysis, determine the operation object, capital allocation, target points, stop-loss level settings, etc. For those who trade in pyramid mode, ensure that the key level of writing down plans to gradually increase positions can use a simple notepad or word processor to monitor changes in relevant information, and once these key levels are written down, then under no circumstances should they be modified because once this is done it may invalidate the plan and may be influenced by emotions in making decisions 3. Establish a pain threshold What is a pain threshold? What we understand is that after a series of losses, the investor needs to exit the market to take a break from the position For example, suppose the investor loses 4 trades in a row If each trade is set at 2% risk, then the loss is 8% No matter how well a trade is done, continuous losses will always make the trader nervous and thus doubt himself, which will inevitably result in greater losses Now, suppose Traders will pain threshold set to 10%, which means that traders up to account balance loss of 10%, after reaching this threshold must take a break and then operate the specific length of the break (a few days or weeks) depends on the trader itself, in the spirit of recovery to normal, and will not doubt their ability to return to the market to continue to do transactions summary  nbsp;Whether for brokers or traders, risk control is very important the concept of risk control is quite broad, foreign exchange in the said risk control not only includes brokers in foreign exchange trading risk management, simply by throwing single, hedging and other methods to maximize profits in the transaction, there are many other aspects can also become unstable factors in foreign exchange trading and risk control for traders For traders, it will help them to stabilize their transactions; for brokers, it will also help the platform to develop benignly, thus promoting the benign development of the whole industry
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