Trading capital

    What is trading capital?

    Trading capital is the amount of money a trader uses for trading. In the era of online trading, the trading capital needed and the cost of trading have gone down significantly.

    Many brokers allow you to deposit very small amounts of money to trade. In any case, you should never deposit more money to your trading account than you would be willing to lose in the worst case.

    Proper money management will help you minimise the risk of losing your trading capital and maximise the chances to increase it. A simple rule of thumb would be to never put more than 1% of your trading capital at risk in a single trade.

    Money management is the most important skill you have to master as a trader. We recommend you to read about it here:

    In our beginner strategy, we recommend to start with a trading capital of at least $150. This allows you to stick to proper money management.