FasTrading Risk Management Tools

Optimize your trading with the latest risk management tools.

Smart risk management tools geared at empowering your trades!

Limit and Stop Loss Orders
Managing Your FasTrading Account Leverage

How to Manage Your Desired Trading Account Leverage

We give you the complete flexibility to trade with high, low or no leverage whatsoever. You’re in complete control when it comes to managing your equity, and you can do this by depositing funds or withdrawing them. You are able to control your total position value by opening and closing different trading positions. You can view your equity level and other important information under the My Account bar which you can find on the left sidebar on the main page of the FasTrading trading platform.

The Leverage Example

You go ahead and deposit $200,000 into your trading account. Now your equity is $200,000. You buy Oil, which is worth $200,000. You are now trading without leverage.

In this example, you trade with 1:10 leverage. Here’s what happens. You deposit $20,000 and so your equity is $20,000. You buy $200,000 worth of CFDs on Oil. How? You have used 1:10 leverage, meaning you can buy at 10 times the equity you have in your trading account.
Your P&L at this point is 0. The usual spread of Gold is 50 to 70 cents, so you have a P&L of -$7
Please note that there are overnight premiums added if positions are open overnight.

The Stop Loss, Take Profit and Limit Orders

What’s a Stop Loss Order? A Stop Loss can be applied to a trade before it’s opened, plus you can edit the Stop Loss while the trade is active. With a Stop Loss, you can set the exit point of a losing trade.
What’s a Take Profit Order? This is basically the opposite of a Stop Loss Order in that you can set an exit point of a winning trade.
What’s a Limit Order? You can set the FasTrading trading platform to open a buy or sell position on an instrument when the said instrument hits a specific price point. This allows you to do other things instead of sitting in front of your screen and waiting for the price point to hit the mark you want.

Here’s a quick example of how these orders work:

Amazon trades at (Sell) $305.95 / (Buy) $306.96
You buy 15 Amazon share CFDs
You want to limit your loss to not exceed $150
To do this, you place your Stop Loss order price at $296.95
Amazon share price falls to $296.95 and then drops further to $292
Your position is closed at $296.95 as this is where you placed your Stop Loss order
Your loss on this trade is 15 shares x $306.95 – $296.95 = $150

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