What Is Hedging in Forex and How Traders Use It
Hedging in forex is a risk-management technique traders and businesses use to reduce the impact of adverse currency moves. Rather than trying…
What is Diversification in Forex?
Diversification in forex is a deliberate way to reduce the chance that one single loss wipes out your account. At its heart it means spreading…
What correlation means in forex — a practical guide for traders
Correlation in forex describes how two currency pairs move in relation to one another. Some pairs tend to travel together, some tend to move…
What Exposure Means in Forex
Understanding exposure is one of the first practical steps in managing risk in foreign exchange. In simple terms, exposure is the degree to…
What “Maximum Risk” Means in Forex — and how to use it
Trading carries risk. The explanations below are educational and not personalised trading advice. Understanding what people mean when they…
Risk‑Reward Ratio in Forex: What it Is and How to Use It
The risk‑reward ratio is one of the simplest and most useful tools a forex trader can learn. At its core it answers a basic question before…
What is the Reward-to-Risk Ratio (RRR) in Forex?
The reward-to-risk ratio (often shortened to RRR or R:R) is a simple but powerful concept that compares how much you expect to gain on a trade…
What a Lot Size Calculator Is (and How to Use One in Forex)
A lot size calculator is a simple risk‑management tool that tells you how big a position to open so your potential loss on a trade matches the…
Position sizing in forex: what it is, how to calculate it, and why it matters
Position sizing is the deliberate choice of how many units (or lots) to buy or sell on a single forex trade so that the potential loss fits…
Understanding Risk Management in Forex Trading
Risk management in forex is the set of rules and habits a trader uses to control how much they can lose on any trade and over time. It’s less…