Server-side enforcement. Per-account granularity. Dealer-monitored in real time.
TraderEvolution's risk management engine is built into the back-end core. Every order passes through server-side risk checks before execution. Brokers, banks, and prop firms configure risk parameters per account, per group, per instrument, and per asset class — all enforced in real time. Live monitoring and trade execution on behalf of clients is handled through the Dealer Terminal, a separate application with configurable visibility and access per dealer.
Comprehensive risk management at every level — from individual accounts to the entire broker operation.
Every order is validated against risk rules before reaching the execution engine. Checks include margin availability, position limits, instrument restrictions, and order size limits.
16 margin calculation types covering the full range of instrument classes and business models: percentage-based, fixed CCY value, price-based custom coefficients, tiered margin by market value or quantity, VaR margin with FX/CFD hedging, CBOE-style for options, fixed income pre-paid, stocks pre-paid, and more.
When margin utilisation reaches the configured threshold, the system can automatically close positions to restore margin compliance. Liquidation rules are configurable on three levels: per group, user, and account.
Risk parameters are organized into reusable Risk Plans — named profiles that define margin rules, trading modes, and loss limits. Each plan is assigned to one or more accounts. Brokers maintain a library of plans for different client segments: retail, professional, prop trader evaluation, funded, and so on.
Two configurable warning thresholds (Warning level 1 and Warning level 2) notify clients before margin utilisation reaches stop-out. Dealers receive parallel alerts in the Dealer Terminal. The system provides time to act rather than triggering immediate liquidation.
When stop-out is triggered, the system closes positions according to the configured liquidation strategy. More than ten strategies are available: close all, close by margin excess, FIFO, LIFO, largest position first, largest loss first, full position FIFO, and combinations. Stop-out type is configured separately for risk rules and margin rules.
For prop firms: Risk parameters are essential for funded trader programmes. Use Risk Plans to configure separate profiles for evaluation, verification, and funded account phases — including EOD trailing drawdown and daily loss limits specific to each phase. All limits enforced server-side without client-side bypass.
Margin policies per instrument group. A-book/B-book exposure management. Automatic stop-out. Regulatory capital compliance.
Per-account daily loss limits, drawdown controls, and instrument restrictions. Phase-specific risk profiles for evaluation programmes.
Four-eyes approval for parameter changes. Audit trail for all risk actions. LDAP-integrated access control for risk management functions.
A separate real-time application for risk desk operators. Dealers monitor live positions, margin utilisation, and pending orders across all client accounts — and can execute trades on behalf of clients where permitted.
Risk management is built into every TraderEvolution deployment. Our team helps configure risk parameters for your specific business model and regulatory requirements.