Exness has taken proactive measures to protect traders from the harsh impact of sudden market fluctuations with the introduction of their innovative feature, “Stop Out Protection.” This virtual buffer acts as a safety net, shielding traders from the potentially devastating consequences of market crashes and rapid spikes that can lead to stop outs.
In the unpredictable realm of financial markets, major fundamental reports and unexpected news can trigger brief but massive price movements. While traders with substantial capital might be able to weather these storms with a certain level of apprehension, those operating with limited trading equity are at higher risk of facing a complete wipeout of their accounts within a matter of minutes.
Stop outs are a common occurrence in such scenarios. To protect traders from falling into excessive debt, brokers halt trading activities when a trader’s losses exceed the available account funds, resulting in a zero account balance. This can be a distressing and disheartening experience for traders who log back into their trading platform only to find their entire trading capital obliterated.
Exness recognized the severity of such situations and empathized with their clients. To provide a more secure and resilient trading environment, they conceptualized and implemented the Stop Out Protection feature. The objective was to create a mechanism that could shield traders from sudden spikes and crashes without compromising their profitability.
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The Stop Out Protection feature functions as a virtual buffer for traders. When prices rapidly move against the trader’s positions, potentially leading to a stop-out, this buffer comes into play. It comprises a specified amount of virtual funds temporarily added to the trader’s available margin. The exact amount of this buffer is dynamic and depends on various factors, including the spread and the number of lots traded.
By activating this virtual buffer, Exness aims to give traders a fighting chance to endure stormy price actions and survive long enough for the market to potentially reverse in their favor. It offers traders an additional layer of defense during periods of heightened market volatility, reducing the likelihood of an abrupt stop out and providing valuable peace of mind.
With the Stop Out Protection feature in place, traders can approach the markets with greater confidence, knowing that they have a safety net to shield their equity from potential wipeouts caused by momentary price swings. This innovative mechanism allows traders to focus on honing their trading strategies and capitalizing on market opportunities without being overwhelmed by the fear of sudden and adverse market movements.
