Risk Capital is a crucial concept in Forex trading, which is extremely important for many traders. It refers to the money that you have and can invest in your trading. To trade in Forex, you need to deposit money into your trading account, which is called margin. Margin is a portion of the money deposited into your trading account and given to your broker to open your trades. When trading in Forex, you need more money besides the money deposited into your trading account. When you trade, you need to place stop loss and take profit orders based on your trading strategy. Additionally, you need to keep enough reserve capital in your trading account so that you can cover any losses during trading.
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