Set a Stop-Loss Order:
A stop-loss order is a risk management tool that allows traders to automatically exit a trade if the price moves against them beyond a specified level. By setting a stop-loss order, you define the maximum amount you are willing to lose on a trade. It helps to protect your capital by limiting potential losses and prevents emotions from influencing your trading decisions.

Forex trading offers tremendous opportunities for profit, but it also carries inherent risks. Effective risk management is crucial for forex traders to protect their capital, preserve their trading accounts, and achieve long-term success in the market. In this article, we will explore essential risk management techniques that forex traders can employ to mitigate risk and enhance their trading performance.