All investments in the PrivateForexTrader have a built in capital protection of a minimum of 80% of the total amount invested. In the event that the level of equity of an
investment falls below this level, trading on the account is automatically suspended. This offers a level of protection to an investor's initial capital, and also helps to lock in profits made on the investment.
To illustrate how this works in practice, let us take an example where an investor invests $100,000. If, for example the value of the investment rises to $120,000, then the level of protection rises to 80% of this balance, ie $96,000 (0.8*120,000). If, subsequently, the value of the investment drops to $96,000, then trading on the account automatically is suspended.
This method of capital protection ensures that profits are preserved, and reduces the overall volatility of the investment.