Risk Management

Risk Management

Risk management is the identification, assessment, and prioritization of risks (defined in ISO 31000 as the effect of uncertainty on objectives, whether positive or negative) followed by the coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.

At IMMSFX, risk management plays an integral role in delivering long term results, trust and positive growth of our clients financial portfolios. Our main risk specifically refers to uncertainty in financial markets/Forex trading outcome. The strategies to manage risk typically include transferring the risk to another party, avoiding the risk, reducing the negative effect or probability of the risk, or even accepting some or all of the potential or actual consequences of a particular risk.

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At IMMSFX, there is only one core strategy: Minimize Risk.

There are 7 main Risk Minimization Strategies applied by IMMSFX together with other minor systemic trading applications.

  1. Use of leverage
    We understand that leverage is a double edge sword. It can magnify losses and at the same time, profit. IMMSFX have very strict control policy of using leverage and we capped the use of leverage at 30x.

  2. Multiple currency pairs
    Not all currency pairs will move in the same behaviour. We will identify the most trending currency of the day and this increase our probability of success.

  3. Stop loss and take profit
    We will always have stop loss and take profit placed on all our positions.

  4. Number of open positions
    The more number of positions are opened, the higher the risk. Our company policy is capped all open positions at any one time at 3.

  5. Percentage of loss
    We have set a limit of maximum loss of 3% of the account balance. All trading activities will be stopped for the day if the limit is hit.

  6. No trading during News
    Market conditions are volatile during news announcement. No positions are opened during news announcement.

  7. Decision making process
    At IMMSFX, we are using 2 level of checks before any trades are made. The trader have identified a trading opportunity and reports to the chief trader. Chief trader need to approve the trade before the trader can open the position.

Each of the above seven strategies adhere to strict limits set by IMMSFX based on our research and experience over the past ten years. Forex Trading is a risky investment.What makes IMMSFX unique is our philosophy of protecting our clients wealth while affording impressive returns through Comprehensive Risk Management Strategies.