Nobody controls where a price goes next. What you control is how much you can lose on each trade. That is risk management, and it matters more than any single trade.
Size the position to the loss you accept
Before you open a trade, decide the most you are prepared to lose on it, and keep that amount small compared with your account. Then choose the lot size and the Stop Loss so that, if the Stop Loss is reached, the loss is no larger than that amount.
Always use a Stop Loss
A Stop Loss closes the position at the price you chose, so one trade does not take more than you planned in normal conditions. In a fast market the price can jump past your level, and the position then closes at the next available price.
News days
Big economic releases — US jobs, inflation, central bank decisions — can move prices sharply within seconds. Our fixed spreads on gold, silver, oil, the Dow Jones and the Nasdaq do not widen at news time, and we never raise margin on news or before the Friday close. But prices still move fast: a fixed spread does not slow the market down. Check the economic calendar before you trade, and set price alerts or news reminders in your account.
Money you can afford to lose
Trade only with money you can afford to lose — never with rent, savings you need or borrowed money. If an account ever goes below zero, you do not owe us the difference, but the money in it can still be lost. After a loss, take a break; never try to win it back with a bigger position.
Worked example
- Your account: $5,000. The most you accept to lose on this trade: $100.
- On gold, 0.10 lot is 10 ounces: each $1 of price movement is $10.
- A Stop Loss $10 away from your entry price: 10 × $10 = $100.
- Add the spread cost of $2, and you know your planned loss before you open the trade.
Key points
- Decide your largest loss before you open a trade, and size the position to match.
- Use a Stop Loss on every trade.
- Fixed spreads and fixed margin stay the same on news days, but prices can move fast — check the calendar.
- Only trade money you can afford to lose.
Try it
Open the economic calendar to see this week's releases, then set a price alert in your account for a level you want to watch.
Open the economic calendar