Author: Livia Tay, MY
Last Updated: November 13, 2024
This article explains the Dynamic Leverage Tiering System and understand how leverage adjusts based on trading conditions, risk, and client activity levels.
What Is the Dynamic Leverage Tiering System (DLTS) ?
Source: Account Types
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Overview of the Dynamic Leverage Tiering System
The Dynamic Leverage Tiering System is designed to automatically adjust the leverage clients can use based on several risk factors and account activity. This helps ensure a balanced approach to risk management by adapting leverage to trading behavior.
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Example Scenario
If a client’s open positions exceed a set volume, the system may reduce leverage from a higher tier to a lower one (e.g., from 1:200 to 1:100). This adjustment helps manage risk exposure based on market conditions and client activity.
Frequent Asked Question Related to the System
Q1: Can clients manually adjust their leverage?
A1: No, the leverage tiering system is automated and adjusts based on predefined criteria.
Q2: What happens if the market conditions change significantly?
A2: The system adapts to market changes by recalculating leverage, especially during high-volatility periods.
Q3: How often is leverage recalculated?
A3: Leverage recalculations occur in real-time as the system constantly monitors trading activity.