Navigate the CFD Market — Independent Reviews & Analysis

Risk Management

Trailing Stop

A trailing stop automatically adjusts the stop loss level as the price moves in your favor, locking in profits while allowing the trade to continue running.

Take Profit

Take profit is a pending order that automatically closes a trade when the price reaches a specified profit target.

Stop Loss

A stop loss is a predefined order that automatically closes a trade at a specified price to limit losses. It is the most essential risk management tool.

Risk Management

Risk management is the process of identifying, analyzing, and controlling trading risks. It includes position sizing, stop losses, and portfolio diversification.

Margin Call

A margin call occurs when your account equity falls below the broker's margin requirement, prompting a warning or automatic closure of positions.

Margin

Margin is the collateral required to open and maintain a leveraged trading position. It acts as a good faith deposit with your broker.

Leverage

Leverage allows traders to control large positions with small capital. Expressed as a ratio (e.g., 1:100), it amplifies both profits and losses.

Hedging

Hedging is a risk management strategy that opens an opposing position to offset potential losses from an existing trade.

Drawdown

Drawdown measures the decline from peak to trough in a trading account. It indicates the maximum loss a trader has experienced and is a key risk metric.

ATR (Average True Range)

ATR measures market volatility by calculating the average range of price candles over a specified period. Widely used for setting stop-loss levels.