Managing risk is essential in trading, where price movements can be swift. Here are some practical steps to help manage risk effectively in MetaTrader 5 (MT5). 

• Use Stop Loss and Take Profit Orders: One of the easiest ways to control risk is by setting Stop Loss and Take Profit levels. A Stop Loss automatically closes your trade if the price moves against you by a set amount, limiting potential losses. A Take Profit order does the same for profits, allowing you to secure gains when your target is reached. To set these, click “New Order” and enter your levels before placing a trade or right click on the open order and select “Modify or Delete” from the menu. 

• Limit Your Trade Size: Bigger trades mean bigger risk, as each price movement will impact your account more. MT5 allows you to control the size of each position by adjusting the lot size when placing an order. Many traders use the 1-2% rule, which means they risk only 1-2% of their account on each trade. Keeping risk small helps protect your capital over the long term. 

By following these steps, you can control your exposure in MT5 and better handle the ups and downs of trading. Now that we’ve discussed risk management, let’s explore a related concept: managing margin.