How do I manage risk when trading Forex?
Forex traders can use a variety of risk management strategies. The most common form of risk management is the use of stop loss and limit orders.
Stop loss orders can be set within the MetaTrader 4 and MetaTrader 5 platforms, and are often used to force the closure of a position at a predetermined price in order to limit any potential loss. Limit orders work in much the same way as stop loss orders; however, they allow a restriction to be placed on the maximum price paid.