Risk management is the set of rules that limits your losses — using stop losses, sensible position sizing, and a cap on how much of your account you risk per trade. It is what separates traders who survive from those who blow up, and it matters more than picking winning trades.
Forex Term
Risk Management
Controlling how much you can lose on any trade or overall.
Example
Risking no more than 1% of your account per trade is a core risk-management rule.
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Trading Forex and CFDs involves a significant risk of loss.
Risk
Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.