#CommunityAMA Determining your risk per trade in forex trading is essential to protect your capital, maintain emotional control, and trade consistently over time. Here's a simple, step-by-step breakdown: ✅ Step-by-Step: How to Determine Your Risk Per Trade Step 1: Decide How Much of Your Account to Risk This is usually based on a fixed percentage of your total account balance. Conservative: 0.5% per trade Standard: 1% per trade Aggressive: 2% per trade (not advised for beginners) > 🔹 Example: If your account is $5,000 and you risk 1%, you are risking $50 per trade. Step 2: Define Your Stop-Loss in Pips This is the maximum number of pips you're willing to lose on a trade. Base this on technical levels (support/resistance, swing highs/lows, ATR, etc.). > 🔹 Example: On EUR/USD, you place your stop-loss 30 pips away from your entry. Step 3: Calculate the Value Per Pip This depends on the lot size and currency pair. Lot Size Pip Value on EUR/USD 1 Standard Lot (100,000 units) $10/pip 1 Mini Lot (10,000