Skip to main content
All CollectionsMoney & Risk Management
How can I effectively manage risk in my trading strategy?
How can I effectively manage risk in my trading strategy?
Updated over 6 months ago

Effectively managing risk in your forex trading strategy involves several key practices, including setting stop-loss orders, determining proper position sizes, and using leverage judiciously. A stop-loss order automatically closes out a position at a predetermined price level to limit potential losses, while careful calculation of position size ensures that you're only risking a small percentage of your trading capital on each trade. Using leverage cautiously helps prevent the magnification of losses.

Did this answer your question?