Money management in forex trading is a crucial aspect of a trader's success and involves managing capital, risk, and position sizing to preserve and grow trading accounts effectively. Proper money management aims to minimize losses, maximize profits, and protect capital from excessive risk. Key principles of money management include setting stop-loss levels, calculating position sizes based on account size and risk tolerance, diversifying trades, and avoiding overleveraging. By implementing sound money management strategies, traders can improve their overall trading performance, reduce emotional stress, and increase the likelihood of long-term success in the forex market.