What Is Drawdown in Forex Trading? Drawdown refers to the reduction of your trading account from its peak to a subsequent low after a series of losing trades. It is usually expressed as a percentage. Drawdown shows how much your
What Is a Stop-Loss? A Stop-Loss is a preset level where your trade will automatically close to prevent further losses. It acts as a safety net, protecting your account from emotional decisions and unexpected price movements. If the market goes
Position sizing is one of the most important concepts in forex risk management, yet many traders overlook it. In simple terms, position sizing determines how much of a currency pair you should trade based on your account size and risk
The Risk-to-Reward Ratio measures how much a trader is willing to risk in exchange for potential profit. It compares the difference between your entry price and stop-loss (risk) with the difference between your entry price and take-profit (reward). For example,
