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How can I manage risk when trading?

Practical risk-management essentials: position sizing, Stop Loss, Take Profit, leverage and margin.

Risk management is what helps you trade sustainably. A few essentials:

  • Decide in advance how much you're willing to risk per trade, per day, and per week — and trade small while you're learning.

  • Use a Stop Loss (SL) to close a losing trade automatically at a level you choose, and a Take Profit (TP) to lock in gains when your target is hit.

  • Don't over-leverage — higher leverage means larger swings in both directions.

  • Keep an eye on your margin level. If it falls too far you'll receive a Margin Call, and the platform may force-close positions (a Stop Out) to limit further losses.

  • Remember swaps — holding positions overnight can add a cost (or sometimes a credit).

See more on protecting your account in Trading basics.

CFDs carry a high risk of losing money rapidly due to leverage. Never trade with money you cannot afford to lose.

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