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Variation Margin

"Stay ahead of the curve with ADE's real-time risk management system."

The "Value at Risk" component is a crucial part of ADE's risk management system, which continuously monitors open trade equity in real-time and instructs margin top-ups based on market fluctuations. This independent risk management component ensures that all exposure is marked-to-market in real-time and initiates position liquidation in case of funding insufficiency. As per ADE's margin rules, the system can send margin warnings, top-up calls, and position liquidation notifications, providing details about the expected required incremental collateral to cover further volatility.

It is this component that will prevent risk increasing orders or trigger auto liquidations based at Clearing Member set Warning, Call and Cut levels.

“If you have a losing position that is making you uncomfortable, the solution is very simple: Get out, because you can always get back in.”

Paul Tudor Jones
- Legendary Trader and Investor