When evaluating Signal Providers in FXTRADING.com's Social Trading platform, the risk score is a crucial metric that helps you assess potential risk before investing. This article explains how risk scores work and what they mean for your investment decisions.
What is the Risk Score?
The risk score is a numerical indicator displayed for Social Standard and Social Pro accounts that reflects the level of risk associated with a Signal Provider. It primarily considers the Signal Provider's free margin—the lower the free margin, the higher the risk of a stop out occurring, resulting in a higher risk score.
Note: Risk scores are not available for Professional accounts.
Risk Score Categories
Risk scores range from 1 to 10 and are categorized into three levels:
Risk Score | Level | Description |
1-5 | Moderate | Low probability of losing all capital in the short term |
6-8 | High | Requires caution; investors should accept responsibility for potential losses |
9-10* | Extra High | Extreme caution advised; only invest capital you can afford to lose |
*To find signals in the current Client Portal, open Social Trading → Discover Signals → View All. Use Risk Level to sort the displayed list. Country: All is the country filter, not a setting for all risk levels. Check the current list and the selected Signal Provider's status; a risk score alone does not establish visibility or investment availability.
How Risk Scores are Calculated
The risk score displayed for a Signal Provider represents the highest risk level reached during that day. The system calculates risk scores every minute, updating the displayed score only when a higher value is detected.
A Signal Provider can improve their Signal Provider's risk score by consistently using a smaller portion of the Signal Provider's capital for trading over a 30-day period.
Risk Score vs. Drawdown
While drawdown shows historical performance (what has already happened), the risk score attempts to predict future vulnerability. A risk score of 6 or higher indicates significant risk, with higher scores suggesting lower free margin and greater vulnerability to market fluctuations.
Risk scores of 9–10 indicate Extra High risk. Do not rely on an assumption that these signals are automatically hidden. Listing visibility, risk assessment and the conditions for investing are separate checks.