Loss Limit Reviews – please note that loss limit amounts are set and calculated in CAD.
- When you opened your account with us, you were asked to state the amount in Canadian Dollars that you felt you can afford to risk in trading currencies and CFDs without negatively affecting your lifestyle. You were notified that this amount will be used to set your initial Loss Limit and that if this initial Loss Limit is exceeded, you will need to respond to a Loss Limit Review questionnaire for you to continue trading, however, we do not close your trades or otherwise limit your open-trade losses based on this amount, it is simply to trigger a review of the accrued losses on your account and determine whether continued trading remains appropriate for you.
- When you breach the approved loss limit on your account, you will be notified in the client portal via a pop-up notice or via e-mail reminder. You will have to respond to a simple 3-part questionnaire in order to increase your loss limit amount and continue trading, if you so desire. Please note that your account may be transitioned to “close-only" trade restrictions depending on how long it takes you to respond to the Loss Limit Review questionnaire. You will typically have 7 days to respond.
- You will have an option to ask for an increase to your loss limit by completing the Loss Limit Review questionnaire – when you go to avatrade.ca -- > login (you can also send an email to CS@AVATRADE.CA / or contact us on chat / contact your dedicated account servicing agent).
- If you didn’t answer the loss limit questionnaire within the allotted time or in case your requested loss limit increase was not approved the account may be transitioned to “close-only" trade restrictions – where you will only be able to close existing open positions, deposit and withdraw funds but you will not be able to open or put on any new positions.
- If the current amount of losses (both realized and floating) is higher than the approved loss limit amount – it will be considered as a loss limit breach.
- Increase requests in account loss limit amounts will be reviewed and assessed by Friedberg compliance. They may request additional information or require the completion of a KYC (Know Your Client) Update form from you.
- Friedberg compliance reserves the right to not allow a further increase in your account loss limit and, if required, restrict your account to “close-only” trade restrictions if, based on their assessment and in their opinion, they believe that to allow a further increase to your account loss limit and/or to allow you to continue trading would not be prudent at that time.
If the article does not assist or clarify your Loss Limit query, don't hesitate to contact our customer support team through chat, email or phone.