Managing your Risk

There is almost always risk when you invest in this very lucrative and liquid market. The same old equation applies – High-income - High risk.

But we have addressed this and we call it RISK MANAGEMENT.

Without proper risk management this high degree of leverage can lead to huge losses as well as gains.

The most common risk management tools in FX trading are the limit order and the stop loss order. A limit order places restriction on the maximum price to be paid or the minimum price to be received. A stop loss order ensures a particular position is automatically liquidated at a predetermined price in order to limit potential losses should the market move against an investor's position. The liquidity of the forex market ensures that limit order and stop loss orders can be easily executed.

Every successful trader should know how much risk he is willing to take, and what profits should result from the trade. This is the basis of every realistic trading strategy. We will teach you how to minimize you risks and maximize your profits!

The amount of profit you can make depends on the size of your initial capital, the amount of work you are willing to put in, and your personal trading style, meaning how much risk you are willing to take.
We strongly advise that all traders take the necessary time to do the proper preparation (training) in order to become consistent and successful traders.

Take time to learn and invest in your education. It could be the best investment you have ever made.

Click below to experience the VIRT® Professional Tutor Program

© Copyright Frannor Trading 102 (Pty) Ltd  2002

Demo trade RISK FREE for 60 days. With a demo account and trading software, you can practice currency trading at your own pace, using the same real-time data and quotes available to Live Account holders.
CLICK HERE