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SpiceProp's traders has received a new risk-protection tool

14.10.2024

News

In October 2024, SpiceProp traders who completed evaluation and signed contracts with the company received a new, effective risk protection tool. Now, when working on a real simulated account, a trader can use a maximum of 20% of the funds from the account's purchasing power. The previous 2.75% rule, which was introduced some time ago, was abolished due to the adoption of the new 20% rule.

“The experience of many traders indicates that gambling is a dead end. Gambling cannot be the basis for making deals. Therefore, we have decided to introduce a new rule to warn traders against making rash decisions", co-CEO and Founder of SpiceProp Natalia Bojko notes.

Taking care of traders, SpiceProp will not close accounts where this rule has been violated.

20% of the account's purchasing power is calculated based on the initial value of the account deposit. At the same time, the size of the initial capital may change due to scaling, so the absolute value may change, and the relative value of 20% remains unchanged.

The value of 20% of the committed capital reflects the transaction's margin, which is visible on the client's MT5 account.

The margin is the amount of initial margin that is taken to conclude a transaction at a given leverage.

The margin takes into account different currencies (currency risk) and contract sizes and different leverage on the instruments.

The 20% value is not neutralised by hedging. Gambling is considered to involve more than 20% of the balance in a position.

The 20% of the deposit of the position refers to the total number of trades in the account at any given time.

Example for EUR/USD Account size: 100,000 euros.

Maximum margin: 100,000 * 20% = 20,000 euros
Maximum number of lots for EUR/USD: 20 (1 lot = 1000 euros)
On GBP/USD (exchange rate 1.19)
This gives us a maximum of: 16.80 lots (20,000 margin)
These calculations are for a leverage of 1:100, where 1 lot (in EUR, the account currency) = EUR 1,000 margin.

Adjustable

Terms: 100,000, 1:100 leverage
10 lots per EUR/USD (10,000 margin)
8.40 lots on GBP/USD (conversion rate 1.19 – 10,000 margin)
Total exposure: 20,000 (20% of 100,000)

Not allowed

Terms: 100,000, 1:100 leverage
20 lots on EUR/USD (20,000 margin)
16.80 lots per GBP/USD (conversion rate 1.19 – 20,000 margin)
Total exposure: 40,000 (40% of 100,000)

SpiceProp will be sending updated contracts to traders on simulated funded accounts for signing shortly. SpiceProp support is always available to answer questions.