CFD Risk Management: Stop Loss, Position Size, Diversification > Community gallery

In CFD trading, before the direction of entry you first have to set your stop loss criteria, the risk per trade, the daily loss limit, your margin cushion, and how concentrated your positions are. Even when you split across several instruments, they can move together on the same market factor, so check the correlation. Even a stop loss order can fill at a price different from the one you specified in a fast-moving market.

This image is a concept image produced in-house to explain risk management principles. This post is general educational material and is not a solicitation to trade or a guarantee of principal or returns.