What is the Safety Mode in FXTM Invest?
Another great feature in FXTM Invest is the Safety Mode. This function enables Investors to decrease their risk by half, compared to their Strategy Manager. By switching Safety Mode to “On”, the Investor reduces his or her position size by approximately half – thereby reducing any potential losses by half. At the same time, any profits will also be halved.
When an Investment Account is opened initially, the “Safety Mode” is switched off by default.
Let’s look at an example to see the Safety Mode function in practice. On January 10th, the Investment Account has an equity of $1000. By February 9th, the equity drops to $800.
Return = -$200, that is -20%
Return with Safety Mode On = -200 * ½ = -$100 that is -10%
By using the Safety Mode, Investors have even more control over their funds.
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