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Risk Management together with Leverage and Lot size

Amber_0302
Sep 22 2020 at 05:24
54 príspevkov
One needs to have a proper risk management to avoid the losses. In trading if you want to have profits then you should know how evaluate the risk.

radioactive
Sep 22 2020 at 05:55
47 príspevkov
It can be very useful if you can work out your trading and find the appropriate calculation on such trading lot, size, and many other.
You will need to do it more than once for accurate result.

richardmarcus
Oct 07 2020 at 04:59
104 príspevkov
MarvinKops posted:
How to effectively calculate Risk and Reward. formula to use as well as tips to make it easy to understand.


leverage and lot size goes hand in hand
higher the leverage lower will be you margin required
it means you are dealing in a 1 lot of eur/usd with 30x leverage you will only be needing
Leverage is what a trader borrows from the broker. In margin trading, you basically invest a portion of the amount you’re trading and the rest you borrow from the broker.
If your leverage ratio is 30:1, it means that with one unit of a currency you can hold 300. So 1 USD will be able to hold 30 USD. So your 30 dollars will only be used and rest is borrowed from the broker
The advantage of this is that you will be able to place trades on higher lots and earn big profits and moreover if you’re just a beginner in the trading world this might help avert any kind of major loss so to keep losses in check we opt for higher leverages Trading on a standard lot of usd requires 100,000 usd which is not possible so to make it possible leverage comes in to play
Most common lot sizes are
Standard 100000
Mini 10000
Micro 1000
Working on higher lots also increases the risk of greater profits if you are just a beginner you must try to trade on micro or mini lots

RobSchiz
Jul 02 at 15:45
459 príspevkov
Amber_0302 posted:
One needs to have a proper risk management to avoid the losses. In trading if you want to have profits then you should know how evaluate the risk.

Yes. Proper risk management can help a trader to reduce his losses.

LyudmilLukanov
Jul 07 at 08:32
644 príspevkov
If you are using high leverage or want to use high leverage you must have a proper risk management plan in place.


Skinim
Jul 12 at 04:23
12 príspevkov
It seems to me that regardless of the fact that you will use leverage or not, you still need to be able to manage risks, this gives you some security

AliaDare
Jul 12 at 16:34
682 príspevkov
From my experience, risk ratio and leverage are very important in trading. These factors help maintain discipline in trading as well as provide account security.

SteveHanks
Jul 13 at 10:22
450 príspevkov
LyudmilLukanov posted:
If you are using high leverage or want to use high leverage you must have a proper risk management plan in place.


Yes. absolutely right.

Tremblay
Jul 19 at 11:07
330 príspevkov
LyudmilLukanov posted:
If you are using high leverage or want to use high leverage you must have a proper risk management plan in place.


High leverage means high risks.

AndrewMcCalam54
Jul 24 at 06:32
41 príspevkov
if you think only high leverage ratio can bring good amount of profit then it could be dangerous in spite of having good risk management. so be careful when trading.

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