Glossary › risk per trade
Trading glossary · risk
risk per trade
How much of your money you agree to lose on one trade if it goes wrong, like one small slice.
The fuller meaning
The planned loss if one trade's stop is hit, usually a fixed 0.5% to 2% of the account. It sets drawdown depth and risk of ruin; the percentage stays fixed while the money amount adjusts with the balance, and it should not rise because a trade feels certain.
risk per trade.
Related words
1% rule · ATR stop · average loss · average win · breakeven · breakeven win rate · correlation · daily loss limit · drawdown · equity curve