• The process of risk management
• How to develop your own risk management plan
• Understanding the new margin requirements
• Live risk management on the TraderPro platfor
Risk management is one of the most critical skills for a trader to master. Every time a trader enters a position, they are exposed to risk. Therefore, understanding what that risk is and controlling it is crucial.
Traders often challenge the market consensus, and if the position turns the opposite way, they could risk more of their financial capital than anticipated. This is why it is important to have your risk management at the forefront of your mind and ensure you apply it consistently to every trade you place.
All traders must understand that there is a high element of randomness to the markets - therefore they will experience both winning and losing trades whilst following a trading strategy. It is essential that the use of a strategy is combined with responsible money management and risk management. Different traders following the same strategy will achieve different levels of performance, and there is no guarantee of profitable Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when spread betting or trading CFDs with ETX. You should consider whether you understand how spread bets or CFDs work and whether you can afford to take the high risk of losing your money.