Trading Multiple contracts

schross4x

Recruit
Messages
1
Hi everyone - I am new to Forex so I have a few questions - By Trading multiple contracts how does this reduce your risk - I have seen multiple forums & sites refernce this i.e. take out 25 contracts etc. Does this mean of the the same CFD's or different ones?.
 

Pharaoh

Colonel
Messages
19,743
As I understand it, futures use contracts. The equivalent in forex is lots (or minilots, etc.).

Taking multiple contracts (buying/selling multiple lots) doesn't decrease risk. It increases both risk and profit potential. Of course, depending on what the smallest tradeable unit is that your broker supports, multi-lot/contract orders might be needed if you plan to scale out.
 
Top