CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. -- % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Launched: display of target VaR and VaR ratio of DARWIN assets

As promised when we announced the change from fixed VaR to variable VaR, we’re now showing providers their DARWIN’s exact target VaR.

It’s displayed in the “DARWIN Info” section of the Asset Management Terminal.

We’re also introducing a new concept called VaR ratio.

Considering that the formula of the Risk Manager is:

Lev (investor) = Lev (trader)* (target VaR/strategy VaR)*f

The formula for the VaR ratio is:

VaR Ratio = (Target VaR/Strategy VaR)

As you can see, it’s the leverage ratio between DARWIN and underlying strategy as long as f=1 which is when the Risk Manager does not intervene. E.g. if the VaR ratio is 2, the DARWIN will trade with double the leverage than the strategy.

For a detailed explanation of how the risk of DARWIN assets is managed, please visit the relevant Knowledge Base article.

We hope this information proves useful! We’ll continue improving the management terminal :darwinex:!

11 Likes

Great! Very happy about this new feature :slight_smile:

Looking good @javicolonbo !
Thanks for the update.

Another improvement. Thank you.

2 Likes

Great, target var is great, thanks for his improvement.

1 Like