Risk management is an essential component of trading. Traders need to pay close attention to several perspectives, such as
- The Futures maintenance margin ratio
- Account margin ratio
- Available collateral in your account
WOO X has designed a hierarchy of risk levels to indicate your account risks based on your account’s margin ratio. The futures margin ratio represents the amount of collateral posted relative to the value of your positions outstanding. You will see the three risk levels from the account page.
- Low Risk - Blue (Between 1000% to 100%):
Your collateral is greater than the value of your positions, so you will not be liquidated. - Medium Risk - Yellow (Between 100% to 50%):
You are using the collateral and borrowing the funds, please be aware of your risk level and adjust your position accordingly. - High Risk - Red (Below 50%):
Your current leverage exceeds your Maximum Leverage allowed, and you can only close positions at this stage. Please manage your positions and collateral carefully.
| Leverages/Risks | 2x | 3x | 4x | 5x | 10x | 15x | 20x | 50x | 100x |
| Low Risk | 1000%-100* | 1000%-100* | 1000%-100* | 1000%-100* | 1000%-100* | 1000%-100* | 1000%-100* | 1000%-100* | 1000%-100% |
| Medium Risk | 100%-50% | 100%-33% | 100%-25% | 100%-20% | 100%-10% | 100%-7% | 100%-5% | 100%-2% | 100%-1% |
| High Risk | Below 50% | Below 33% | Below 25% | Below 20% | Below 10% | Below 7% | Below 5% | Below 2% | Below 1% |