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Trading Multiple contracts

Discussion in 'General Forex Talk' started by schross4x, Feb 11, 2008.

  1. schross4x

    schross4x Recruit

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    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?.
     
  2. Pharaoh

    Pharaoh Colonel

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    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.
     

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