return and risk Forex
return and risk
Successful work on the market Forex , trader has to work strictly on a particular program relative to the current market situation. trade program defines the risk of possible loss and the estimated yield .
For example, with $ 10 000 margin deposit , a trader may open at 10 lots, with a risk of 70% of its capital. But Work trader is different from the roulette game, as trader can be in any time to close a position that bears the losses, thereby losing all. trader should clearly understand where the limit losses , he kototye willing to incur.
Thus, trader sleditza state their positions and can not lose all your capital one wrong decision.
allowable losses vomnogom dependent on trade tactics chosen by the trader and the period of open positions. trader can myself a goal to earn on short positions, such as multiple hours on average - a few days or for long - a few weeks.
assume that our goal is to work on short positions. With daily traffic at vylyut rusle50 100 points, this Work is more than real. Work on short positions less risky for a small margin deposits.
before bidding We must be strictly defined for itself, which limit the amount we can take risks. Suppose our margin deposit of $ 10 000 and we are ready to risk the 20 th percent deposit. In this case, based on the current market situation, we assume that quote the German mark will grow and will soon rise from 1.7760 to some 10-ing points. Stop-loss order, we limit 20th paragraphs, that is when the quote is 1.7740, we have to close loss-making position. We open 2 lots for sale (Sell DMK) at a price of 1.7760. At This aim to close the position at a price of 1.7800, that is earning 35 points. With a 10-point spreads, our profit is in this case 30 points.
open position , we do not leave it to fate, and constantly monitor it and the state of the market, further modeling development of the situation. The situation can change radically with the arrival of news. Thus, if we see a change in the situation and to start driving the market against us, perhaps it makes sense to close a position without waiting for the scheduled stop-loss level, if we see that in the near future the situation will not change in our favor. Even in case of failure, our losses are limited to 20 yupunktami, that when we open 2 lots will be 1.59 percent ($ 159) from margin deposit. If the market moves in our direction as we expected, we obtain a net profit of about $ 240 in case of closing the position at the price of 1.7800.