When trading with leverage, understanding your "reserved amount" is key to keeping your account healthy and your trades active.
What is "Reserved Amount"?
The reserved amount at Rise is not a fee or a transaction cost. It is simply the portion of your funds that is set aside and "locked" to keep a specific trade open. Think of it as a good-faith deposit for your active positions. The higher your leverage, the less amount will be required to open a trade.
What is "Available Funds for Trading"?
"Available funds for trading" is the most important number on your trading platform. It represents the funds in your trading account that are not currently tied up in open trades.
Available Funds for Trading = Real Time Value - Reserved Amount in Use
This is the money you can use for new trades. Your account's real-time value includes unrealized profits and losses, while the reserved amount in use is the portion of your funds held in your open trades.
These funds help you open new trades and help cover any temporary losses on your current trades.
Managing Your Available Funds for Trading (Crucial Rule)
If your open trades start losing money, your account's real-time value drops, which means your available funds for trading also drop.
Important Reminder: If you request a withdrawal from your account, that amount is immediately treated as "held" and is deducted from your available funds. Make sure you have enough funds in your account to support your open trades before withdrawing.
If you have questions about calculating the reserved amount held for a specific instrument, you can always reach out to our team at support@traderise.com.