Page 57 - Ultimate Guide to Currency Trading
P. 57
CHAPTER 7
Managing Margin and Risk Management Techniques
When you are trading currencies you will be setting your margin ratio much
higher than with a normal stock margin account. Since these margin levels are
so high, you will need to understand the dynamic of how use your margin
account for maximum effectiveness. You will also need to know how to prevent
a margin call by dismantling your positions one trade at a time. Lastly, this
chapter will also cover some risk management techniques such as position
pyramiding and the 2 percent rule.
