Discussion on setting stops losses and risk management

[FOREX.com]

So for an example I have £950 account so I would risk £19 per trade

£19 is 2% of £950, so you have understood this part correctly.

however if I open a position with £500.00 I would be stopped out rather quickly, is this where the position size comes in? For instance so I would then change the position to 10% of my account £95.00 and then with the 2% risk rule stop loss would then be a lot wider on this position. And the work to 1:3 risk reward ratio.

It seems like there’s some confusion here about how you would choose your trade size to risk 2% of your account.

If we look at EUR/GBP for example, on a standard lot (100K) position, you’re risking £10 per pip. That means you couldn’t even place a trade of this size and limit your risk to £19 since the spread cost alone would take you to close to this amount.

If you open a mini lot (10K) EUR/GBP position, then you’re risking £1 per pip. This would allow you to risk 19 pips. This might be enough if you’re scalping, but for most trading strategies, you might want the flexibility to risk more pips.

If you open a micro lot (1K) EUR/GBP position, then you’re risking 10 pence per pip. This would allow you to risk 190 pips. For this reason, this might be closer to the trading size you might want to consider depending on your strategy.