Dynamic Risk Limits

In order to calculate the full margin requirement, a few factors are needed: Base Risk Limit, Step, Base Maintenance Margin and Initial Margin. These factors are used to calculate the full margin requirement at different position sizes.

When a trader increases his/her position size, the base maintenance margin and initial margin requirements will increase. Traders will have to decide whether to adopt a higher or lower risk limit on the Position panel. Margin requirements will change accordingly as the risk limit changes.