intCourse overview
Ignoring a margin call can have serious consequences. Your broker may be forced to initiate a margin closeout, selling your investments to meet the minimum account value requirement. This could lock in losses and leave you with less money than you started with.
Quiz
1/2
Level
Beginner’s
Time
15 minutes
Quiz
Test your skills
Course summary
Losses are inevitable in trading, even with a winning strategy. There are things you can do, however, to control your risk and mitigate potential losses. In this introduction to risk management in trading, we will show you how to calculate your lot size, determine your risk limit, and apply a stop-loss.
Applying risk management strategies is essential when you use leverage to trade. Leverage can maximise your exposure to the markets, and although it can multiply your gains, it can also amplify your potential losses. Risk management has several key advantages, including:
