Trading online during times o uncertainty could be a real challenge, even for experienced traders and what online brokerage companies can do is to provide tools and features to make their clients feel secure. The markets could be wild and volatile for extended periods, which increases the risk of someone losing money, even with a proven successful strategy. With the risk of their accounts taking a downward path, traders need not just the traditional risk management tools (negative balance protection, stop loss, or take profit) but some additional tools specially designed to meet the demand of 2020 market conditions. easyMarkets had answered the question and just recently had announced a major upgrade for dealCancellation, one its most popular tools, that once activated, can undo losing trades.
What is dealCancellation and how can traders use it?
dealCancellation is a unique and innovative risk management tool that allows traders an unprecedented level of control by undoing losing trades to recover some of their lost funds in exchange for a fee, according to the terms & conditions. Already activated for more than 30,000 trades, the feature had raised the traders’ interest since it unlocks a completely new way to trade during these volatile times.
One of the best ways dealCancellation can be used i
f for hedging purposes. The market valuations are very volatile around
macroeconomic events and the ability to anticipate what could happen is
limited. Traders can neutralize or reduce the risk by opening an order covering
the other side of the market, with dealCancellation activated before the trade
is even open. After the news had been
released and the market had digested it, one of the trades will be successful
and the other won’t.
Since dealCancellation had been activated, the ability to undo the loss limits the downside, since traders had to pay the fee associated and recover the rest of the loss. Testing a new strategy or undoing a trade opened by mistake are other two great ways to use this tool.
Major upgrade takes dealCancellation to the next level
According to a recent press release issued by easyMarkets, dealCancellation had been upgraded and now the duration had been extended to 3 and 6 hours. Alex St. Louis, Chief Information Officer at easyMarkets, talked about it and mentioned the decision had been motivated by the current uncertain market conditions:
“In the face of the current worldwide crisis, we enhanced our remote access infrastructure to ensure that easyMarkets could continue to operate at full capacity, maintaining its excellent standards of client services and daily operations. This combined with our already established development practices and collaboration tools enabled us to deliver major projects such as extending the duration of dealCancellation to 3 and 6 hours, with more to come in the next few months.”
The decision to improve dealCancellation comes in a period when the company is already offering other proprietary risk management tools like Freeze Rate. These can all provide an enhancement of risk control and help traders navigate one of the most challenging market periods.