> Understanding Risk

Basic Forex Risks (1)

The Risk-Reward Ratio
One of the most effective risk management tools is the Risk-Reward Ratio. Yet many beginnning traders don't use it or understand it. Learn the basics about this important money-saving tool and why experienced traders swear by it.

Leverage: Friend or Foe?
Many traders don't fully understand the proper use of leverage. Misconceptions abound over whether a trader should use leverage. Some traders swear by it. Others avoid it like the plague. Learn how to use leverage effectively, profitably, and safely.

Risk for Beginning Traders
Risk is a part of every trade. Many people avoiding trading because they are afraid of risk. But risk can be managed. In fact, it should be managed! Learn how to assess your level of risk for every trade and methods of controlling risk.

Safe Ways to Use Margin
Many traders are afraid of using the margin. Others are excited about the extra funds available for trading and potentially high profits. Neither approach is sound and either limits the person's ability to trade or makes trading too risky. Find out how to use the margin responsibly to increase profits while keeping risk under control.