News & Analysis at your fingertips.

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.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
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
Oil - US Crude
Wall Street
More View more
Real Time News
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out:
  • Weakness in equity markets continued last week as losses built and technical patterns hint further bearishness might be ahead. Get your #equities update from @PeterHanksFX here:
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here:
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:
  • #Gold prices succumbed to selling pressure as the US Dollar soared this past week What is #XAUUSD facing these next few days and can these fundamental forces extend its selloff? Check out my outlook here -
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here:
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here:
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:
  • The price of #oil may continue to trade in a narrow range as the rebound from the September low ($36.13) appears to have stalled ahead of the month high ($43.43). Get your #commodities update from @DavidJSong here:
  • The Australian Dollar may extend its slide lower despite the planned easing of Covid-19 restrictions, as the market continues to price in an RBA rate cut on October 6. Get your #currencies update from @DanielGMoss here:
So How Many Trades Can I Open?

So How Many Trades Can I Open?

2011-05-11 20:19:00
Richard Krivo, Trading Instructor

Student’s Question:I understand that the risk should be limited to a maximum of 2-5% of the account balance but how can you determine the number of positions?Instructor’s Response:Good question...Let's use the 5% figure and let's also say that you have a $5000 trading account. So 5% of that amount would be $250. That would mean that at no time when you are trading should more than $250 of your account be at risk. In other words, if all stops are triggered, whether you have several positions open or a single position open, no more than $250 would be lost.Taking the above into consideration, if each pip is worth approximately $1, you could take 1 position with a 250 pip stop (based on 5% of a $5000 account) or 2 positions with 125 pip stops, 3 positions with 83 pip stops and so forth. That is how I go about determining the number of positions that I can comfortably open relative to the size of my trading account.

Also, keep in mind that a trader need not put on as many positions as their account size will allow. If the 5% rule dictates that you can open five positions without overleveraging the account, there is absolutely nothing wrong with opening three positions or just one.The key is to never risk more than 5% of whatever your account balance might be at any one time no matter how many positions that are open.

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