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How can I manage risk in Forex trading?

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How can I manage risk in Forex trading?

Answered By Editor


Stop-loss order and and the limit order are the best risk management tools you can use to prevent huge losses in Forex Trading. A limit order sets a ceiling for a maximum price to be paid for a currency and a minimum price to be given in an exchange.

A stop-loss order in the other hand, automatically liquidates a set position at a predetermined price in case a move by the market goes against an investors position.

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