Risk Per Trade

Learn Risk Per Trade — part of our Risk Management series on Trading Bite. Free trading education for Pakistan, India & Gulf traders. Educational use only; not financial advice.

· 3 min read

What you can lose on one trade

Risk per trade is the amount of account equity you are willing to lose if your stop-loss is hit. Expressed in currency (e.g. $50) or percent (e.g. 1% of $5,000 = $50).

Professional retail guidelines often cite 0.5%–2% per trade — never risking so much that a few losses destroy the account.

1%Account equityRisk slice = max loss if stop hits

Define risk before entry. If you cannot place a logical stop, skip the trade.