A Wealth of Knowledge
In Forex trading we use very strict money management rules to control the amount of risk that we expose ourselves to at any given time or on any given trade. The correct percentage of our account to risk on 1 trade should be no more than 1% but the reality is that most Forex traders with small accounts risk around 5% of capital on a trade.
The calculation differs depending on your broker. The following example I the easiest and this is how you work out your volume on TDmarkets.com Most other brokers will require additional calculation, but TDMarkets is Forex trading simplified as you will now see. 1% of your balance divided by the number of pips in your stop loss equals volume to enter in MetaTrader when you trade. Volume = (Balance x risk%) divided by Pips in Stoploss
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