Unlock the Secret Strategy That Could Transform Your Forex Trading Risk Overnight

Unlock the Secret Strategy That Could Transform Your Forex Trading Risk Overnight

Implementing Position Sizing

Utilizing a predetermined percentage of the trading capital is one typical approach of calculating position size. A trader might opt, for instance, to risk no more than 2% of their capital on a single transaction. By dividing the trading capital by the predetermined fraction, a trader can use this strategy to determine the proper position size for any trade.


Utilizing position sizing depending on volatility is another strategy. This strategy changes the position size in accordance with the volatility of the currency pair being traded. When trading a highly volatile currency pair, for instance, a trader can choose to open a smaller position because the likelihood of large price swings raises the risk of the deal.

Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21