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Professional Risk Management

Risk management is the ability to contain your losses so you don’t lose your entire capital!

“How to apply proper risk management?”

Position sizing.

A technique that determines how many units you should trade to achieve your desired level of risk. And this is the closest thing you can get to the “holy grail”.

But before you calculate your position size, you must know these 3 things:

  1. Value per pip
  2. The dollar value you’re risking on each trade
  3. The distance of your stop loss

There is considerable exposure to risk in any off-exchange foreign exchange transaction, including, but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or currency pair.

Moreover, the leveraged nature of Forex trading means that any market movement will have an equally proportional effect on your deposited funds. This may work against you as well as for you. The possibility exists that you could sustain a total loss of initial margin funds and be required to deposit additional funds to maintain your position. If you fail to meet any margin requirement, your position may be liquidated and you will be responsible for any resulting losses.

Any opinions, news, research, analyses, prices, or other information contained on this website are provided as general market commentary, and do not constitute investment advice. FXLiveTradeAlerts LLC is not liable for any loss or damage, including without limitation, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. FXLiveTradeAlerts LLC has taken reasonable measures to ensure the accuracy of the information on the website. The content on this website is subject to change at any time without notice.

Risk Warning

By making an investment or by trading in financial instruments, your capital is at risk; As the value of your investment can rise, there is always the potential of losing some or all of your invested capital; Past performance (whether actual or simulated), predicted returns, or likelihood performance scenarios may not reflect actual future performance and certainly do not guarantee future results; Investing/trading in Contracts for Difference (CFDs) is highly speculative and involves a significant risk of loss associated with OTC markets; Since low margin deposits are normally required when investing/trading in CFDs, a high degree of leverage may be obtained. Therefore, speculation in these markets should only be conducted with capital you can afford to lose and will not dramatically impact your lifestyle; We believe that you should be aware of the risks before deciding on investing your capital, consider your risk tolerance, investment objectives and your level of experience in like investments, and seek independent financial advice.

Disclaimer

Information contained herein should not be construed as investment advice, or investment recommendation, or an offer of, or solicitation for, any transactions in financial instruments; We make no warranty or representation, whether express or implied, as to the completeness or accuracy of the information contained herein or fitness thereof for a particular purpose. Market information is made available to you only as a service, and we do not endorse or approve it. The information provided herein is not to be viewed as an offer to sell or the invitation of an offer to buy any commodities or financial product described in this website. The information contained in this website has been obtained from reliable sources but is not necessarily all-inclusive and is not assured as to its accuracy. FXLiveTradeAlerts LLC and associates do not imply any performance level, results or guarantee about the operation of the website nor do they make any claim that the use of information obtained from the website will result in a particular profit or prevent any monetary loss for a user. The information provided on this website is to give a basic understanding of trading and is not intended to provide specific financial or investment advice and should not be relied upon in that regard. You should not act or depend on the information on this website without seeking the advice of your financial adviser or future broker who will ensure that your circumstances have been considered. This website contains FXLiveTradeAlerts LLC opinions and doesn’t reflect the opinions of any organizations we might be affiliated with. Any information we provide on FXLiveTradeAlerts LLC website / app is accurate and true to the best of our knowledge, but there may be omissions, errors or mistakes. The information presented on the FXLiveTradeAlerts LLC website / app is for informational and/or entertainment purposes only and should not be seen as any kind of advice. If you rely on any information on this website or app, it is at your own risk. We reserve the right to change our service on the website / app or change the focus or content on our website / app at any time.