What control measures does the risk team take during high volatility?

What control measures does the risk team take during high volatility?

Risk management is a crucial function of any broker. Overseeing many client accounts and ensuring that clients don’t have a short fall in margin is an important task and that falls under the purview of the Upstox Risk Management Team.
As per our policy, if a client’s MTM (mark-to-market) loss falls below 80% of his margin available, then the client will be required to add funds in order to cover up his loss. If he fails to do so within a reasonable amount of time, or if his MTM drops further, the risk managers at Upstox have full discretion to square off his positions. This is done to protect both the client and the broker as the client has used intraday margin to enter his positions.

We take risk seriously

The most frustrating part of trading online is not finding a poorly placed button or complicated menus to find get to where you want. No, the most painful moment of online trading is when you cannot place an order because your broker’s servers went down. You want to ensure that risk is controlled. At Upstox, we take this seriously.

We have invested an equal amount of time and money onto our back-end stability as much as we do onto our front-end for over three years and counting now. This ensures that risk is minimized. Some things we do to achieve this include:

  1. Having more than two lines to every exchange
  2. Full rack of servers to handle customer orders
  3. Automated system level checks on all systems
  4. Risk management team staffed across multiple locations in case of power failure
  5. On call network engineers within 100 meters of our data centers in Mumbai
  6. Firewall protection to throttle and ban unauthorized activity
  7. For some people trading may just be for fun but for many others, it’s part of their livelihood. For those traders where time matters above all, we want to let you know that we will continue working to ensure that your order does not stop with the broker.
  8. Know more about Trading and trading platforms at our Knowledge base section.

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