Saxo Bank has designed a stop out mechanism – which we call Investment Shield - so you can protect the value of your investment. You define the value of the Investment Shield in the investment ticket before you complete your investment.
For example, if you invested USD 20,000 in one strategy your investment shield is set by default at 70% of the value of the initial investment (i.e. USD 14,000). You may amend this value if you wish but the investment shield cannot be set higher than 90%. Should the value of your investment account subsequently fall below the value of the Investment Shield all positions will be closed at market price and the link to the strategy will be broken.
The Investment Shield is designed to limit potential losses, but it is not a guarantee that you can only lose the pre-defined amount specified by you. Please note that the triggering of the investment shield of one strategy will not impact your main trading account or other automated investment accounts as these accounts are treated separately for margin purposes. The value of the investment shield is fixed at the level you set and therefore does not fluctuate with the value of the account. However, you can modify the value of the Investment Shield with the “Manage” button available next to your investment account in your platform.