Risk management · Rookie
Risk per trade
What does Risk per trade mean?
Risk per trade is the planned loss on one trading idea, usually estimated from position size and the intended exit level. Actual losses can differ because of execution and costs.
Example
Two contracts with $75 planned risk each imply $150 before costs and slippage.
Illustrative example; not a provider’s quoted offer.Why it matters for prop traders
Relate the amount to remaining loss allowance, not only to the account’s advertised balance.
Sources and further reading
The following primary sources support the terminology. Provider rules describe their own products and may change.