How Much To Risk Per Trade in forex trading

Using a risk and capital management strategy is one of the most important things that makes a trader in the financial markets more profitable and able to grow his capital. Having a risk and capital management strategy is necessary to protect our capital in financial markets such as Forex and Cryptocurrency. One of the best risk and capital management strategies is to use a fixed percentage of risk per trade, which we will explore in this article.

If you use constant risk amount for all your positions and you can get at least 2 rewards in your positions, you will be profitable. Also, with this strategy you can protect your capital and minimize the possibility of losing your capital.

How many percent can we risk on each trade?

You can risk 2% of your account balance for each trade, not more. If you risk 2% for each trade and get at least 2 rewards, you will earn 4% on each position, and with this amount of risk, your account will not be easily lost. But those who are amateurs and have just entered the market should not risk more than 1% per trade until they become a little more professional and gain more control, then they can increase their risk to 2% per trade.

When can we risk more than 2% in our trades?

You should never risk more than 2% on your main account, but you can open another account with a small capital and trade with more than 2% risk only on that account. The higher your risk per trade, the greater the profits you can make, but remember that you can lose just as much. However, keep in mind that the secret of success in trading is to stick to the strategy of risk and capital management.

We hope you found this article useful