


It's important to point out that the rules for risk management in Forex that I provide in this article are not exclusive to Forex trading. While banks lending money to borrowers must practice credit risk management, to ensure they make a return on their investment, traders must do the same with their investments.įorex trading risk is simply the potential risk of loss that may occur when trading. The Forex market is one of the biggest financial markets on the planet, with transactions totalling more than 5.1 trillion USD every day! With all this money involved, banks, financial establishments and individual traders have the potential to make both huge profits and equally huge losses. 4) Do Not Risk More Than You Can Afford to Lose.3) Use a Take Profit to Secure Your Profits.1) Educate Yourself About Forex Risk and Trading.
