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🔢 Trading basics · Beginner · 10 min read · Lesson 12 of 42 · Free with an account

Risk and win: risk per trade, risk/reward ratio, win rate and expectancy

Most beginners ask “how do I win more trades?”. Professionals ask “how much do I lose when I am wrong, and how much do I make when I am right?”. This lesson is the most important one in the academy.

Risk per trade

Risk per trade is the amount you lose if your stop loss is hit. Professional traders usually keep it between 0.5% and 2% of the account.

Risk per tradeAccount left after 10 losses in a rowGain needed to recover
1%about 90%about +11%
2%about 82%about +22%
5%about 60%about +67%
10%about 35%about +187%

Losing streaks of 5 to 10 trades happen even with good strategies. Small risk makes them survivable. See the loss recovery calculator.

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Questions people ask

Is 1% risk too small to grow an account?

It feels slow, but it lets you survive the learning phase. Growth comes from a positive expectancy repeated over many trades, not from big bets.

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Educational content only, not financial, investment or tax advice. Trading forex and CFDs carries a high risk of losing money. Look up any term in the trading glossary.