Day Trading & Forex Forum

louarm

What isthe leverage on this a/c and how do you manage your risk management?
Thanks

jahual89

You shoudn't be thinking in terms of leverage when managing risk. You should be thinking in terms if percentages, for example I don't risk more than 5% of my total capital on each trade.

Here is the formula you need to decide how much your stake is going to be each trade, also taking into consideration your max risk level.

Stake= Capital*0.05= X

X/Stop loss


The 0.05 equates to 5%, the max you should be willing to risk.

X is the amount you are looking to risk in a particular trade.

Where it says stop loss you put your stop loss distance, i.e if your stop loss is 40 points away from your entry price you would put 40 there.

Hope this helps.

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Ruthless trader that shows no emotion