What is the 2% rule in forex?

Answer
The 2% rule limits risk to 2% of account per trade, preserving capital through losing streaks. On $10,000, risk $200 max via position size and stop-loss. Tighter 1% suits beginners. Prevents single trades from ruining accounts. Pair with 1:2 reward:risk for positive expectancy.

Looking for a broker that fits your needs?

Compare Top Brokers