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What is risk management?

The atmosphere of indecision in the market, for instance, when the supply equals the demand, makes it hard to continue making the right decisions about the price trend. Therefore, trades can be unprofitable.

A few simple risk management rules exist to help minimize losses.

Risk management is a set of rules that determine trade amounts and limit the trader’s total trade volume. Risk management is needed to save the original deposit regardless of the trade’s outcome.