7. Set your risk level
Another top tip you’ll find from experienced traders is to set your risk level. That point where trade becomes too risky with what you have to lose and shut it down is your maximum risk level. Establishing this level can help prevent you from heading into a trade that could cost you basically everything you have.
This is the most important step for determining forex position size. Set a percentage or dollar amount limit you’ll risk on each trade. For example, if you have a $10,000 trading account, you could risk $100 per trade if you use that 1% limit. If your risk limit is 0.5%, then you can risk $50 per trade.