Risks are inherent in trading, and how to limit them is one of the first things that traders should think about. The same should be said about a trading platform that wants its users to remain for the long term. Trading limits are one instrument that Olymp Trade uses to keep its traders from losing money.
What Are Trading Limits
First things first, let’s talk about what trading limits are, exactly. Trading limits are an instrument that we use when the situation on the market is too unpredictable for both us and liquidity providers to forecast. That means that your deals can have a far too unpredictable result, possibly bringing heavy losses.
To avoid that, our risk management system limits the amount of investment you can use to open a position, for a certain period of time until the market stabilizes. This way your money is safe while we wait for this chaos.
You can find out if you are restricted to your trader account, either in the Profile tab or in the Profile section of the Olymp Trade mobile app.
How Are They Used
When the limit is set for your account, you’ll be informed via an impossible-to-miss pop-up message, so you’ll know if that ever happens.
There are few different ways that limits might be implemented for your account:
- On the account as a whole — you won’t be able to trade above a certain volume threshold from this account until it is lifted;
- On a certain asset or group of assets — for example, you won’t be able to open trades with a volume exceeding this instrument’s limit;
- On a certain type of trade — for example, you will be able to only close already existing trades but not open new ones;
- On a trading volume — this way, you are free to trade any asset, but you can’t open a deal over a certain threshold.
As you can see, all the ways are quite simple and we are able to react to many market situations to them without hindering your trading.
How to cancel the limit
Unfortunately, you can’t manually turn off the limits when they’re available. Our risk management algorithms do that after a certain time (usually after 24 hours). However, there are ways to reduce or even completely eliminate our risk management system:
- Complete your KYC — verify your account;
- Change your preferred transaction duration;
- Trading different assets for a while;
- Reduce investment amount;
- Deposit and/or decline bonus;
Also, keep in mind that most limits on our platform do not exceed 24 hours, although in rare cases they can last for several days.
How to avoid limitations
While the market is unpredictable, there are a few rules you can follow to avoid trading restrictions on your account:
- Verify your account;
- Make smaller transactions, proportional to your overall balance;
- Don’t abuse our bounty programs;
- Avoid creating multiple transaction profiles, especially since you can currently create multiple accounts in a single profile.
As you can see, those are pretty simple rules and easy to follow. By following these things, you can minimize your risk while trading and avoid our risk management system from restricting you.
We hope that this article has answered your most pressing question about Olymp Trade trading limits, why they exist and how they work. Stay strong and don’t hesitate to ask us more questions if you have one.