Description:

There’s one thing you need to accept before getting into forex: not every trade can be a profitable one. A good trading strategy is one that accounts for possible losses but still sees you potentially profiting over time. And that’s where risk management comes in. Risk is defined as the possibility that the outcome of a trade will be different to what you expected. With leveraged trading, this includes the likelihood that you could lose more than your deposit. Risk management then is a set of rules to help you deal with this. It forms part of your trading strategy and may help minimize some of the losses that occur when things don’t go your way.