⭐ Risk management is a crucial aspect of futures trading. It involves identifying potential risks and taking measures to minimize or mitigate them. Futures trading involves a high degree of leverage, which can amplify both profits and losses. Therefore, it is essential to have a risk management plan in place to protect your capital.
One of the most common risk management strategies in futures trading is the use of stop loss orders. A stop loss order is an order to sell a futures contract if the price falls to a certain level. This helps limit losses and can prevent a small loss from turning into a larger one.
