In the course of its work, each company faces risks, opportunities for the occurrence of any negative phenomena. Risk management is put in place to prevent unwanted events from being caught by surprise.
The risk management process includes the recognition, assessment, and control of all threats to the organization and capital returns.
To avoid unwanted losses in Forex trading and contracts for difference (CFDs), many traders resort to leverage, which can help to cope with a difficult financial situation.
The leverage we mentioned above is also a leverage tool. However, it can also be tricky. Because you can lose your investment and not be able to pay the loan. For all the complexity of the process, the risk management system and other trading tools still help to predict market developments and get a reward for a deal.
Trading Forex and CFDs is directly related to the market sequence. Your estimate may contain errors when the purchase and sale prices are inaccurate. To prevent defects, OrbitGTM adapts the basic structure of your market research so that the final analytical report clearly matches the information needs of your enterprise and contains forecasts for the dynamics of the indicators you have determined.
The lack of important information can be because of a sharp jump in price. While you may have long days of profit, keep in mind that the market is always volatile and can change things unpredictably. In order not to suffer large financial losses, track your profits and monitor the market.
With strong market volatility, quotes may also change. This leads to unwanted monetary losses. To prevent this from happening, set a stop loss. Stop-loss is a function that allows you to set a limit, after which you automatically stop trading. This way you can prevent unnecessary waste.
As we mentioned, no matter how talented you are, the market can still be unpredictable. You don't always reach profitable trades. According to statistics, a good Forex trade quota ranges from 5 to 8 winning trades out of 10. With this data, you can calculate your order sizes with enough trading capital available to outlast the market movements.
Risk management must also consider external factors that do not depend on the results of the strategy. Therefore, consider them (power outages and/or internet connection failure) so that they do not negatively affect your trading quotes.
High leverage (excessive leverage) will increase your risk and a few negative trades can ruin your overall trading result. With OrbitGTM you can: choose your preferred Forex leverage from 1:30 for retail clients and up to 1: 500 for professional clients.
This is a small step for you, by a giant leap to your financial future with OrbitGTM.