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Forex Risk Management

When trading currencies, risk management is extremely important as leverage can cut both ways. You may find that your winnings are accelerated, but rarely pay attention to the fact that the losses are accelerated by the very leverage that may have attracted you to Forex in the first place.

Below are three tips you may want to consider in your risk management strategy:

1 – Set limits: Know the maximum amount of money you can afford to lose. All Forex traders want to make profits from trading, but there will be times when traders lose in the market. This is something most, if not all traders experience at one point or another. Limitations on how much you are willing to lose on any given trade will help you avoid catastrophic losses. The platforms at Tradeview all have a feature called a stop-out which immediately freezes a trader’s account once they lose 100% of the amount initially deposited. This prevents them from going into the negatives.

2- Be emotionless: Emotions can severely impact trading performance. If you become emotional, particularly when it’s a loss, you put yourself at an increased risk of making rash decisions which as a result can lead to even larger losses. Being that the forex market is an inanimate entity, it does not mix well with human emotions. Successful Forex traders move from one trade to the next without any thought of the previous trade.

3 – Have a safe enter/exit strategy: Less experienced Forex traders should make sure that they have enough liquidity and movement in the pairs they are trading so that they are able to get in and out of a trade safely.

Pnline trading with tradeview

At Tradeview, we encourage our traders to follow risk management procedures by providing the best platform as well as the best-in-class account managers who are available 24/7 to help and support our clients at every stage of a trade. Learn how to use the Tradeview Risk Manager Tool by reading the step-by-step directions on our website.

Rijo Varghese
Account Manager

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Tradeview Ltd. is not a portfolio manager or an investment advisor. This Market Report is for informational purposes only. Any statements made or opinions voiced in this Market Report do not constitute investment advice. The Tradeview Ltd. Market Report does not constitute a solicitation to buy or sell in the financial markets. Although the information contained in the Market Report comes from trusted sources, Tradeview Ltd. is not responsible for guaranteeing the accuracy, timeliness, completeness, or fitness of such sources. Tradeview Ltd. shall not be responsible for and disclaims all liability for any losses which may be suffered from access and use of the contents of the Tradeview Ltd. Market Report. Trading any financial instrument on margin, using leverage or otherwise involves considerable risk. Therefore, before deciding to participate in any style of trading, you should carefully consider your investment objectives, level of experience and risk appetite. Most importantly, do not invest money you cannot afford to lose. Consulting with your investment counselor, attorney, accountant or other professional upon whom you rely for guidance as to the appropriateness of an investment in any style of trading is recommended.

Tradeview Ltd.

Is licensed to carry on securities investment business and is regulated by the Cayman Islands Monetary Authority (CIMA) as a full securities broker-dealer. Tradeview conducts business pursuant to the Cayman Islands Securities Investment Business Law (SIBL) and its activities fall under the direct supervision of the Investments and Securities Division of CIMA.
Headquarters: 5th Floor Anderson Square, 64 Shedden Road, Georgetown, Grand Cayman, Cayman Islands KY1-1002, BWI.

Tradeview Asia Ltd.

Is licensed and regulated by the Labuan Financial Services Authority (FSA) as a Money Broker, registration number LL15870 licensed to facilitate transactions in foreign exchange pursuant to Labuan Financial Services and Securities Act 2010, the Labuan Companies Act 1990 and the Labuan Business Activity Tax Act 1990.
Headquarters: International Business Financial Centre at Office 5, Jamie Business Center I, Unit F10, First Floor, Paragon Labuan, Jalan Mustapha, 87000 Labuan F.T.

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Is licensed as a Category 2 Investment Service Company and is regulated by the Malta Financial Services Authority (MFSA). The Malta Financial Services Authority (MFSA) is the single regulator for financial services in Malta. MFSA is a fully autonomous public institution and reports to Parliament on an annual basis. The MFSA is a member of the European Banking Authority (EBA), the European Securities and Markets Authority (ESMA) and the International Organization of Securities Commissions (IOSCO) and is a signatory of the Multilateral Memorandum of Understanding with other European regulatory Institutions. Tradeview is authorized to provide financial services across multiple asset classes and is passported in the EU/EEA under MiFID II (EU Markets in Financial Instruments Directive).
Headquarters: 157 Archbishops Street, Valletta VLT Malta 1440.

Tradeview Financial Markets S.A.C Global

Is authorized to conduct business pursuant to and in compliance with the General Law of Companies (LGS) promulgated by the government of Peru. Tradeview Financial Markets S.A.C is registered with the National Superintendence of Public Registries (SUNARP), company number 13089531. Tradeview Financial Markets S.A.C provides financial services in selected OTC derivative markets in compliance with all applicable government regulations.
Headquarters: Los Mirtos 239 Urb. San Eugenio, Lince, Lima, Perú.