Thursday, December 15, 2011

Determine the degree of risk for spreads's dead in the Forex


A lot of people trading in the Forex market using traditional forex broker, but I know that a lot of people prefer to trade through the use of spreads's dead. I personally do I permanently trading way spreads's dead, and are an easy way to trade because you do not have concerns about a lot of things, where you simply choose the value you intend to use, for example, £ 1 or £ 10 per point per, for example, and thus the enter a short or long position.
In any case, I would like in this article to discuss how you can determine the degree of risk when you Bsebred's dead in the Forex markets, and therefore what is the size of the quota that you have allocated for each point. It's simple, but it can be rather difficult if you're new to the spread's dead.
The first thing you need to do is to determine the amount you want to use and the risk of it from your account each trade. Common advice is not to risk more than 2-3% of the volume of each account in the trading process; personally, I rarely risk more than the rate of trading spreads's dead, except in very rare cases when I have very great confidence in a certain position .
Suppose that you have £ 5000 in a special account spreads's dead, and you are ready to take the risk by 3% from the account in the process of trading, then it will be the maximum of the loss of this trading is 150 pounds (3% of 5000).
The next step is to look at points, stop loss for this processing. If you intend to enter the position with a stopping point loss at 50 points, then you will be share by 3 pounds per point, because the 50 points at 3 pounds per point gives a maximum loss of 150 pounds, which are equivalent to the 3% that you are ready The risk in this trading process.
And also, if you intend to put in stop loss point spreads's dead, at a distance of only 15 points, you then want to enter in the status value of 10 pounds per point to get the maximum acceptable loss at 150 pounds.
Of course there is always the possibility that the situation does not close automatically at this point stop loss just because of the slip, and in this case may be your loss of the process spreads's dead, slightly more than 150 pounds. , But I hope that I could have understood the point I'm trying to connect.
Conclusion So, if you want to define your risk is spread when's dead, you have to know how much you are willing to lose just based on a percentage of your capital, and then select the number of points that you want to put a breakpoint after the loss.You will then know that you will share the risk set at every point in an easy to enter and then in the process of trading in Forex.

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