Current Risk Indicator
How DXS's current risk indicator helps traders to win
Last updated
How DXS's current risk indicator helps traders to win
Last updated
DXS is a CFD trading platform.
Itโs a platform that has many advantages for the retail trader. It removes all of the conflicts of interest that exist between most trading platforms and the traders that use them.
While most exchanges profit when traders lose, DXS profits from traders winning.
For this reason, we remove the conditions that exist on other platforms that contribute to traders losing. And we add in features that help traders win.
One thing we canโt remove, however, is risk.
Risk, and how you deal with it, is at the very heart of the trading experience. There arenโt many ways to win without risking a loss. Thatโs just the game we play.
Risk management in trading is an exercise of limiting your potential losses to an acceptable, defined level.
One common approach is to always set a stop-loss order at a level that limits your potential loss to no more than 3% of your trading capital. Or even 1%. This is fairly simple to calculate for a single trade, but what if you have multiple trades? What if you donโt use stop-loss orders?
You can quickly lose track of the potential downside - and risk losing far more than you intended if the market turns against you.
Traditional exchanges know this. They know that if you donโt have the information that you need to calculate your risk, youโll lose more. And theyโll make more.
Itโs as simple as that.
Thatโs why most trading platforms only give you minimal information on your potential losses. Sometimes they will offer a risk calculation for an individual position, but only after a stop-loss order has been set up. Itโs technically straightforward for these platforms to show you a cumulative, total risk across all of your open positions, yet they choose not to. This information is being deliberately withheld. Never forget - your losses are their profits.
DXS is different.
Our only income is a very small holding fee that is applied after an individual position has been held for eight hours.
Our business model relies on traders winning:
Trades that hit their stop-loss or get liquidated in less than eight hours do not pay the holding fee
More profitable traders results in an increase in trading volume - which grows the source of DXS's income
Thatโs why we donโt sell your data, or trade against you, like most other platforms.
Or do anything else to reduce your chances of winning.
And thatโs why we make the effort to ensure that you are fully informed of the extent of your possible losses, no matter how many trades you might have open. We give you the information you need to evaluate your risk.
This information is displayed in the Current Risk line of the trading app. You can see it here on the homepage of the mobile app. There is no stop-loss order set on this trade.
The current risk of .064 BSV or $8.26 is the auto-liquidation level of 80% of the margin posted.
Click on Current Risk and it will open a dialogue box with further information:
This is a calculation of your total loss if your stop-loss is hit on every open position.
If there is no stop-loss order set, a figure that is 80% of your posted margin is used. More on that in a moment.
These figures, totalled for all your open positions, give you your Current Risk. So you always know your maximum potential losses, and youโll never be surprised by unexpected, catastrophic losses.
This canโt be understated. The ability to be in complete control, in any market situation - to have 100% transparent current risk and a floor under potential losses, gives the DXS trader a massive advantage over traders at other exchanges.
The DXS Current Risk indicator gives you peace of mind. It means that while you are taking the risks that are essential in order to make a profit trading, you are in complete control of that risk at all times.
Better risk management results in better trading, and more profits.
For you and for us.