3 Risks of Viop
The benefits and risks of the futures and options market (VIOP) are integrated with the global financial futures markets. The development and depth of the capital market through legislation has been enhanced with the benefits of Viop. The advantages and risks of Viop In Phase-2, an attempt was made to protect investors with issues such as collateral, the new step of the BISTECH system, gradually put into operation as part of the collaboration between Borsa Istanbul and Nasdaq OMX. So, what are the risks of Viop and what are the Viop risk parameters?
As an ALB Forex, we will share the details of the above mentioned topic in this article.
The leverage system carries the risk of loss
Like all financial markets, Viop includes risks. Features that provide an edge in Viop can also carry risks at the same rate. Viop is a leveraged market. The leverage system includes high profit advantage and risk of loss at the same rate.
Investors should pay attention to the benefits of leverage to avoid the most significant risk possible in terms of avoiding Viop risks. For example, understanding the risk of this feature is significant in determining what actions to take based on Viop leverage ratios.
The initial margin must not be less
Initial margin is the percentage of a stock's purchase price that must be covered by cash or collateral when using a margin account. The current initial margin requirement set by Federal Reserve Board Regulation T is 50%. However, this provision is only a minimum requirement; some stockbrokers may set higher initial margin requirements.
In Viop, the initial guarantee should not be less. The position that falls below the initial margin must be brought to the initial margin level with the margin call as per regulations. The investor can be protected from this situation by keeping the account balance above the initial margin.
In the futures and options market it is necessary not to go below the initial margin. Slippage below the initial margin results in a requirement to complete the position at the initial margin level through a regulatory margin call.
One of the measures that can be taken to avoid this risk is for investors to maintain a balance in their accounts above the initial margin. This may be enough to circumvent this risk.
Some processed products have less depth
Some products traded in Viop have less depth. In times of heightened volatility in the markets, there may be a risk of not forming a price at every price level in these assets.
You can get help from the experts of our Institute to protect yourself from the risks of Viop and effectively benefit from the advantages of Viop.
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