💱 Forex & CFD Trading
Avoid Over-Leveraging in Forex: Simple Risk Rules
Keep drawdowns small with proven risk limits: low risk per trade, realistic stops, and smart use of leverage.
The Core Principles
Risk per Trade: 0.5–1% of equity
Max Daily Risk: 2–3% stop for the day
Position Sizing: Based on stop distance, not desire for profit
Practical Controls
- •Use smaller lots than your maximum
- •Avoid stacking correlated pairs
- •Widen stops only if your plan says so (not after entry)
Pro Tips & Common Mistakes
Pro Tips
Predefine a "cool-off" rule after 2–3 losses.
Common Mistakes
Increasing size to "get back" losses.
Frequently Asked Questions
Is high leverage always bad?
It's a tool—your risk per trade determines danger.
Can I trade micro lots?
Yes—ideal for granular sizing.
Should I hedge?
Only if your tested plan includes it.