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Forex Position Size Calculator
One of the most important skills that you can develop, especially as a currency trader, is the skill of risk management. Learning how to mitigate risk by adjusting one's position in the market is paramount for not blowing up an entire trading account on just a few trades. This is why we've decided to add the position size calculator as tool within your membership.
All you have to do is fill in the required fields below, and the calculator will figure out how large your position in the market should be in order to satisfy your pre-defined risk tolerance. We recommend that traders start with a pre-defined risk of 2% per trade. However, if you find yourself in a drawdown, you may want to limit or reduce your risk in order to regain some confidence and protect your account.
In order to use the position size calculator, all you need to do is select the currency pair that you are trading, input your account balance, and the percentage of your account that you want to risk (Example: Enter 2 for '2% risk')
U.S. Government Required Disclaimer - Trading foreign exchange markets on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in the Forex market, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial adviser if you have any doubts. Readers of this publication should also be aware of the following CFTC disclosure rule 4.41 regarding hypothetical performance results:
Hypothetical Trading Disclaimer - Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ForexAnatomy.com will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.