Risk Management Overview: Protect Your Trading Account

Tradespace’s risk management engine runs continuously in the background, sitting between you and your broker to monitor every order, position, and P&L movement in real time. When a rule is breached, the platform responds instantly — flattening positions, cancelling working orders, and locking the account — without requiring any action from you.

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How It Works

Risk management operates across two distinct layers, giving you both proactive and reactive protection. 1. Pre-Trade Validation Every order you submit is checked against your configured rules before it is forwarded to your broker. If an order would violate a restriction — such as exceeding your max contract size or being placed outside your allowed trading hours — it is rejected immediately and never reaches the exchange. This prevents violations before they can affect your account balance. 2. Real-Time Monitoring Once an order is live, Tradespace continues monitoring your P&L, open positions, and drawdown on an ongoing basis. If your account crosses a financial threshold — such as your daily loss limit or trailing drawdown level — the platform responds in real time to flatten your position and orders.

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What Happens on a Violation

When a risk rule is breached, Tradespace executes a protective sequence automatically:

1. Flatten — All open positions are closed immediately at the market.
2. Cancel — All working orders are cancelled so no additional fills can occur.
3. Lock — The account is placed into a lockout state for the duration you have configured, preventing new orders from being placed.

The account’s lockout status is visible on your Dashboard and Risk & Account Management page, so you always know its current state at a glance.

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Settings Architecture

Tradespace uses a two-level toggle model so you can apply risk management broadly or surgically, depending on your needs. Master Toggle Each connected account has a top-level Master Toggle that enables or disables all risk management for that account. When this toggle is on, all configured rules are active. When it is off, no rules are enforced. Section Master Toggles Within each account, three sections can be independently enabled or disabled:

• Risk Limits — Financial thresholds such as daily loss, daily profit, and trailing drawdown.
• Trading Restrictions — Order-flow controls such as max contract size, trade limits, and allowed hours.
• Drawdown — The trailing daily loss limit that follows your intraday equity peak.

This lets you, for example, enable financial limits while temporarily disabling time-based restrictions — without touching any individual rule settings.

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