We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
GBP/USD
Bullish
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Bullish
Oil - US Crude
Bullish
Bitcoin
Bearish
More View more
Real Time News
  • Tune in to @IlyaSpivak 's #webinar at 10:00 PM ET/3:00 AM GMT for insight on the cross market weekly outlook. Register here: https://t.co/E213bTtq5C https://t.co/EhPTrzvjdH
  • Since late July, the economic news flow from Sweden has been under-performing relative to economists’ expectations however there has been some improvement since early October. -Citi #SEK
  • The #Euro made cautious upside gains, with EUR/USD showing most potential for upside follow-through. EUR/JPY and EUR/AUD may stall at key falling channels as EUR/GBP eyes 2019 lows. Get your $EURUSD technical analysis from @ddubrovskyFX here: https://t.co/WTVfgxkpan https://t.co/N2DuyHWPdp
  • Overnight index swaps are pricing in a less than even chance (23.3%) of an RBA rate cut at their next meeting on 12/03/2019 #AUD
  • Over the past 30 days, #NZD has been the best performing G10 currencies vs. USD with 1.75% spot-returns while #CAD has been the worst with -0.18%
  • Have you joined @DailyFX @facebook group yet? Discuss your #forex strategies and brush up on your skills with us here: https://t.co/jtY1G7g8yx https://t.co/zSu6vNcTG5
  • #CLP, #BRL and the #ZAR are expected to be the most active Emerging Markets currencies vs #USD with 1-week implied volatilities at 15.43, 12.32 and 11.38 respectively
  • RT @RANsquawk: Asia fails to sustain the momentum from last Friday's record highs on Wall St, with the major indices in the region subdued…
  • (Asia Pacific AM Briefing) Will USD/JPY, AUD/USD and NZD/USD Prices Extend Recent Gains? $USDJPY $AUDUSD $NZDUSD - https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2019/11/18/Will-USDJPY-AUDUSD-and-NZDUSD-Prices-Extend-Recent-Gains.html?CHID=9&QPID=917702 https://t.co/NGza2qGF5r
  • 🇬🇧 GBP Rightmove House Prices (YoY) (NOV), Actual: 0.3% Expected: N/A Previous: -0.2% https://www.dailyfx.com/economic-calendar#2019-11-18
Restoring Lost Equity

Restoring Lost Equity

2011-05-06 19:58:00
Richard Krivo, Trading Instructor
Share:

Student’s Question:This might seem like a silly question but I came across this table and I really do not understand the math behind what it is telling me? ThanksInstructor’s Response:Sure...

Restoring_Lost_Equity_body_Picture_1.png, Restoring Lost Equity

Let's say that you have a $1000 account and 25% of it, $250, is lost and you now have $750 in the account. $250 is 33% of $750. So the percent that you have to recoup, 33%, is actually greater than the percent that was lost, 25%.Looking at the numbers on the grid, it becomes quite apparent why one should not risk large percentages of their account at one time. The recommended "ceiling" amount to risk at one time (not per trade but at one time) is no more than 5% of the account balance.By the way, this example is excellent to keep in the forefront of one’s mind when trading so that we are well aware of the perils of overleveraging our account and posting significant losses relative to our account size.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.