Leveraged trading or margin trading, as typically offered by derivatives platforms like DueDEX, has become increasingly popular with modern crypto traders due to the heightened gains potential with minimal fund outlay. Simply put, the ability to purchase options and other derivatives at a far higher volume than traders normally would, is an exciting opportunity to magnify profits.
However, with higher potential does come higher risk exposure, and traders – especially those novice ones without experience – can unwittingly become more vulnerable to derivatives margin trading risks. For instance, extremely high leverage trades can easily wipe out capital in sudden surges of price action, which is more frequent in crypto markets than in traditional ones.
And in a bid to attract traders, many derivatives platforms promote high-risk products extensively, hiding the added exposure attached to them. As a result, lured by the promise of high gains, new traders enter the market on excessive leverage that liquidate their positions quickly, leaving them with huge losses.
But DueDEX’s latest tool is designed to inform and educate the trader of his risks on leveraged trading, automating basic risk management principles to help traders fine tune profitable strategies.
Monitor Your Risk In Real Time
The DueDEX Risk Manager allows traders to keep an eye on account equities and associated risk, as it changes, with a single click. At the lowest setting (0.25% Risk), traders can experience 20 consecutive losses with adjusted Entry, Stop Loss, Position Size/ Equity, and their account equity will only shrink by 5%.
When used in conjunction with support and resistance, the Risk Manager expands the potential of derivatives trading to make buying and selling windows more visible to the trader. By using Technical Analysis, these different tools can present trading opportunities and risk assessments in a visual manner.
And now, traders can gain an objective risk dimension to all their set ups, and adjust as needed to fit their risk appetite. DueDEX CEO Bo Wang believes that this innovation will bring about positive impact on how derivatives traders manage risk, something that the industry has been in dire need of. Based on reactions so far, Wang says that development is on the right track:
“The feedback has been sensational and the exchange results are exceptional. DueDEX traders risk less per trade and have become more profitable since the introduction of the tool.”
The ultimate goal of the DueDEX Risk Manager is to promote using “safer margin” alternatives to traders trading on leverage, so that they become more profitable, while mitigating risk exposure.
DueDEX has a mission to cultivate a culture of responsible crypto trading through continuous innovation and value-centric solutions that seek to bring long-term positive change to the wider industry. Wang underlines the focus on user experience, with more unique features and increased access to tools that maximize profitability and risk management:
“We believe if we continue to deliver unique and high quality products the exchange will continue to grow and position as a market leader through 2020.”
To celebrate the launch of the new DueDEX Risk Manager, the platform is now offering up to $200 trading bonus on the first deposit on a new account. Signing up takes just 30 seconds. Start your journey today.