Are there ways to manage risk with forex trading?
Yes, Stop loss orders and limit orders are the most commonly used tools in forex trading risk management. They are easily executed in main, due to the liquidity of the forex market. If the market moves against an investors position – a stop loss order will limit potential losses by ensuring that a particular position will be automatically liquidated at a pre-determined price should the market move that way. Where as a limit order will place a restriction on the minimum price to be received or the maximum price to be paid.
