Automatic management of position sizes and margin optimization with artificial intelligence

Margin management (or “risk” in English) is crucial for any asset manager. Margin levels are critical for effective management of positions and exposures. Often overlooked, this management is an essential element of financial success, often more important than a stock market decision-making strategy.

It is essential to remember that trading financial products that are not suited to your capital can be extremely risky. Before trading a product, it is imperative to know the margin available on your account as well as the initial margin of the product you are about to trade.

The maintenance margin is just as fundamental. Once a position is opened, this margin comes into play to absorb some of your net liquidation or available margin level.

If the maintenance margin committed is too large, you may quickly face a margin call. In this case, your account runs the risk of being liquidated by the broker.

Each operation requires careful consideration of various elements, including entering the position with the required initial margin, maintaining the operation with the necessary maintenance margin, and exiting, again with the necessary initial margin.

It is crucial to have these three margins to avoid having your broker liquidate your transaction.

In addition, the addition of an open position between two trading sessions will also result in the application of the overnight margin.

It is important to note that each financial product has its own margin, and that exchanges often offer levers to reduce the need for margins. However, it is imperative to fully understand margin mechanisms before using leverage.

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

Exposure is calculated according to your level of available liquidity and/or the amount of net liquidation of your transactions.

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

To test the Genius Ai autotrade and see how we're simplifying margin management for you, visit our website: https://www.genius-station.com/demo-genius-station.

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