Hi,
Sorry - a real basic question, but actually fundamental to each trading plan.
How do you manage risk in the FX market - If I give an example, could you fill in the blanks.
Sorry - a real basic question, but actually fundamental to each trading plan.
How do you manage risk in the FX market - If I give an example, could you fill in the blanks.
- GBPUSD
- My stop loss is 50 points away from my entry
- I have $10,000 capital
- I only want to risk 5% on each trade - ie. if my stop loss was hit on trade 1, I would only lose $10000 * 5% = $500
My question is this:
How many lots do I buy to achieve the above? I'm confused with how it works.
Thanks - alex