Automatic Position Size Management and Margin Optimization with Artificial Intelligence

Margin management, or "risk" as it's commonly referred to, is crucial for any asset manager. Margin levels are decisive for effective management of positions and exposures. Often overlooked, this management is a critical element of financial success, often more significant than a stock decision-making strategy.

It's essential to remember that trading financial products unsuitable for your capital can be extremely risky. Before trading a product, it's imperative to know the available margin in your account as well as the initial margin of the product you're about to trade.

Maintenance margin is equally fundamental. Once a position is opened, this margin comes into play to absorb a portion of your net liquidation level or available margin.

If the engaged maintenance margin is too significant, you quickly risk facing a margin call. In this case, your account is at risk of being liquidated by the broker.

Every operation requires meticulous consideration of different elements, including entering a position with the required initial margin, maintaining the operation with the necessary maintenance margin, and exiting, once again with the necessary initial margin.

Having these three margins is crucial to avoid your broker liquidating your operation.

Furthermore, adding an open position between two trading sessions will also incur overnight margin.

It's important to note that each financial product has its own margin, and exchanges often offer leverage to reduce margin requirements. However, it's imperative to fully understand margin mechanisms before using leverage.

For users of the Genius Ai algorithm and its Autotrade service, margin management is simplified. Autotrade Genius Ai will only open positions if you have the necessary margin to enter, maintain, and exit the position, all calculated automatically.

Exposure is calculated based on your available liquidity level and/or the amount of net liquidation from your operations.

Users of the Genius Ai algorithm and Autotrade service also have the option to manually limit their exposure in individual settings, providing additional control over their operations.

To test Autotrade Genius Ai and discover how we simplify margin management for you, visit our website: https://www.genius-station.com/demo-genius-station.

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