Risk per trade
Amount in USD (or %) you risk on a single trade. The most important money-management metric and the most abused by inconsistent traders.
The essentials
- risk_usd = |entry − stop_loss| × lots × pip_value.
- Conservative 0.25–0.5%/trade. Propfirm standard 0.5–1%. Aggressive 1–2%. Suicidal >2%.
- "Revenge trades" after a loss = raising risk = self-destruction.
How it's computed
risk_usd = |entry − stop_loss| × lots × pip_value
risk_% = risk_usd ÷ balance × 100
Example: EURUSD entry 1.1000, SL 1.0980, 1 standard lot → 200 pips × $10/pip = $2000 risk. On a 100K account = 2%.Recommendations
- Conservative
- 0.25–0.5% / trade. Sustainable for decades, hard to grow fast.
- Propfirm standard
- 0.5–1% / trade. Lets you absorb ~10–20 losses in a row before hitting the limit.
- Aggressive
- 1–2% / trade. 5 reds in a row put you in critical zone.
- Suicidal
- >2% / trade. A 4-loss streak burns a challenge.
Important
If you normally risk $100/trade and one day risk $500, that trade contaminates your whole stat. R:R, expectancy, profit factor — all assume risk is stable. "Revenge trades" after a loss = raising risk = self-destruction.
Related
Custom risk rules
The Risk page (menu, Accounts group) lets you define your own discipline limits per account, with two tabs: Configuration and History. They're not the propfirm's rules — they're yours, stricter, to stop you BEFORE violating the broker's.
Drawdown and Recovery factor
Drawdown is what can kill you (literally, in propfirms). Recovery factor tells you whether the reward compensates.
Sharpe and average R:R
Sharpe tells you whether your returns compensate the volatility. R:R tells you whether your system needs to hit a lot or a little to be profitable.