I keep reading that traders only risk 1% of their account per trade. My questions are:
1) How does leverage figure into this? If I had 100,000 USD in my account then I would only risk 1000 USD per trade, but this would increase if I used leverage, so how does the 1% rule work with leverage?
2) There are investors who diversify into currencies long term and do not risk only 1% but 100%! Does that make them gamblers.
1) How does leverage figure into this? If I had 100,000 USD in my account then I would only risk 1000 USD per trade, but this would increase if I used leverage, so how does the 1% rule work with leverage?
2) There are investors who diversify into currencies long term and do not risk only 1% but 100%! Does that make them gamblers.