Risk Management6 min read
Risk Management Basics for CFD Traders
Risk management is the foundation of trading. Learn the 5 rules every CFD trader must follow. The five rules: risk per trade, daily stops, correlation and.
The 5 Rules
- 1. Never risk more than 1-2% per trade
- 2. Always use a stop loss
- 3. Daily loss limit: 3%
- 4. Diversify across instruments
- 5. Reduce size after losses
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70-80% of retail investor accounts lose money when trading CFDs. Backtesting does not guarantee future results. Always consider whether you can afford the potential loss of your capital.