Deposit Size for Effective Risk Management

[Mashangoane]

As a rule, it is considered best to risk only a small percentage of your account on any single trade.

When trading forex, it is inevitable that you will incur losing trades, whether you are a scalper or a position trader.

Markets tend to go through winning and losing streaks, and traders should also account for sudden price movements that will incur slippage which goes beyond a trader’s stop loss.

As such, taking these inevitable losses into account, when deciding on the best deposit size for effective risk management, you should weigh the percentage of your account you are willing to risk against your worst drawdown.

Therefore, you should aim to risk no more than 0.5% of your account on any trade if you don’t want your account to be down by more than 20%.

 

[cdsxk35]

minimum $100 deposit using 0.01. Up your lot size after every $200 increase

 

[Luther23]

Hey guys. So, which one of these scenarios carries more risk:
1. Opening 10 positions of size 1,000 each (0.01 lot size)
2. Placing one order of 10,000 position size (0.10 lot size)

Or is it really just the same?