Equity Protection Management

Available for Managed Accounts only.

This remarkable feature provides enhanced and flexible control over risk and exposure to clients which accounts are part of a managed program. With T1 EPM, you can set up your own equity drawdown limit, ensuring more effective protection of your investments.

 
EPM BENEFITS

  • squareFast and easy set up at any time.
  • squareAutomatic closing of positions: once your Equity falls to the specified EPM level, the system will automatically close all open positions and will cancel all pending orders.
  • squareManaged account protection: your account and funds will be also automatically removed from the the managed (MAM). If you wish to join the MAM again, simply click the “Join Program” button on your Client Portal and your account will join at 5pm EST.
  • square“Leave Program” Button: in addition to setting up your EPM protection level, you can manually leave the program, at any time, by clicking the “Leave Program” button on your Client Portal. This will also close all open positions immediately*. 

HOW IT WORKS

EPM = Equity
Margin level = Equity/margin * 100
EPM new Stopout

HOW TO SET IT UP

 

You can set your EPM as soon as your account has joined the Managed Program.

  • squareNavigate to “My Accounts” on your Client Portal, click on your managed account and locate the section called “Stopout Level” at the upper right-hand side on your screen.
  • squareClick the “Edit” button to the right and type in your desired EPM level.

how_te_set_up_epm_1

  • squareTick the arrow  arrow and review the information that will be displayed.

how_to_set_up_epm_2

  • squareOnce you are satisfied with it, click “Submit”

EXAMPLE

 

  • squareStarting Balance = $10,000
  • squareLeverage = 1:100
  • squareTrade Size = 1 x 1lot + 1 x 2 lots = 3 lots USD/CAD
  • squareMargin = 1 x $1,000 + 1 x $2,000 = $3,000

CASEAYou have set up your EPM at $4,500
EPM will be triggered when P/L from open positions = -$5,500 (Equity=10,000 - 5,500 = 4,500)

This equals 150% Margin Level: ML = E(10,000-5,500) / M (3,000) * 100 = 150%

System will close all open positions and will remove your account from the MAM once your equity falls to $4,500
CASEBYour EPM is $2,100
EPM will be hit when P/L from open positions = -$7,900 (Equity =10,000 - 7,900 = 2,100)

This equals 70% Margin Level: ML = E(10,000-7,900) / M (3,000) * 100 = 70%

This is a highly unlikely scenario, because Tier1FX automatic stopout would have already been triggered at 100%. Still, in highly volatile markets, it is possible that your Equity falls below 100% due to adverse price movement. In such cases, lower EPM would act as a back-up stopout level.


 Important notes:

check-greenYou can only set your EPM after your account has joined the Managed Program.

check-greenEPM is set in absolute value, in your account currency. It represents the level of Equity in your account that, once reached, will trigger a form of stopout process.

E.g. If your initial deposit is $5,000 and you set your EPM at $1,000, this means that EPM will be triggered when your account Equity falls to $1,000, i.e. when you lose $4,000. This also includes losses on open trades.

check-greenTake care when making EPM adjustments if you have open positions, as you may accidentally set your EPM at a lower level than your current equity and thus trigger it.

check-greenDon’t forget to take EPM into account when making new deposits or withdrawals.


*Subject to instruments trading times. You would not be able to leave a managed program over the weekend if the program has open positions, as the market is closed and there is no pricing at which your positions can be closed.

 

launchapp small Set up your EPM in the “My Accounts” section of your Client Portal.. (Managed accounts clients only)

 

launchapp small See Trading FAQs