I just started trading forex and I have some bankroll managment questions.
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Lets say I have 10,000$ on my account. How much of that should I leave as my usable margin?
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What is the max amount I should invest in a single trade with a 10,000$ bankroll on my account.
The most common rule of thumb is 2% of your account at risk at any one time.
This explains it better than me.
Forex Money Management: Rules for Managing Your Forex Trading Money
And please, if you just started, leave your money under the mattress until you get a handle on this. If you insist on blowing it, go to Vegas. At least you’ll have good looking gals to remember.
I found an answer to my second question, but I still cant find an answer to how much of my 10,000$ should I leave as usable margin.
I mean what is the max number of 2% trades I can make with 10,000$ on my account.
What part of 2% risk at any one time is not understandable?
Usable margin is 10k-trade margin.
At risk is what your stop loss is set at.
Margin size depends on lot size.
One trade $200 at stake.
Or 10 trades at $20.
How you break it up is completely up to you.
Lot sizes are adjustable.
edited for clarification
I highly recommend a demo account.
It will all come clear to you quickly.
OK, I got it now. Thanks for your help.