risk management tips and tricks

Trade with zero risk!

Learn our risk management tips
and tricks

Risk Management

Risk management is one of the main factors you should keep in mind while trading. It’s very important to manage your forex risk is to never trade money that you can't afford to lose. Many forex traders are just anxious to get right into trading with no regard for their total account size. While trading forex you should keep in mind:

Limit your trade lot size it must be
appropriate as per account balance.
Make stop loss your friend. It will
safeguard further losing.
Use fundamental & technical analysis to
understand market conditions and historical data.
Building your trading strategy based on
discipline and patience is the key.

Trading with leverage can be a profitable way to stretch your capital. But these advantages also have the potential risk, as the losses can also be greater than the total margin held. Both ways the upside or the downside can be significant. The best traders always take steps to use leverage wisely with stop loss & limit orders.

It is always better to keep in mind all the times that you might face some significant losses while trading on margin with the sudden upward or downward moves of the market.You could lose your account in short time.

At CLIQ FX we believe in your success. Hence we want you to realize the potential of leverage without exposing yourself to the risks.

Leverage = 1 : 500

Risks of trading multiple markets

One should not miss the best opportunities while focusing on thousands of markets across the globe. Lack of interest can lead you towards higher risks. It is therefore recommended to consider a trading strategy, which includes a narrowed focus on few markets to monitor for suitable volatility instead of looking at a broader picture.

You should create a limited watch list right away for the most liquid & volatile markets having tight spreads to start with EUR/USD, GBP/USD, USD/JPY.

Margin Stop Out Risk

It happens when your account falls below 50% of the initial margin. All the open positions will be immediately liquidated.

Margin stop outs can help prevent the
possibility of not losing the entiree capital.
Having multiple trades open concurrently can
increase the risk of a margin stop out due to an
inability to follow many open positions simultaneously.
A sudden or significant movement in one
of your instruments may adversely affect
your margin levels for your entire account.
By reducing your account leverage, you impose a
higher margin requirement on each trade, which ultimately keeps you further away from a margin stop out.
send message