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Risk management

The rules that decide how much you can lose per trade, per day and in total, before any trade is placed.

Last verified 13 September 2026 · written by the DexLadder team

What it means

The rules that decide how much you can lose per trade, per day and in total, before any trade is placed.

Why it matters when you trade

Risk management is the part of trading that is fully under your control, which is why it is where skill actually compounds. It is arithmetic, not attitude: fixed fractional risk, a maximum daily loss, a cap on correlated exposure and a size that follows from the stop. Systems without it survive on luck and end at the first tail event.

Worked example

A 1% risk per trade survives ten consecutive losses with 90% of capital intact; a 10% risk leaves 35%.

See it on live markets

DexLadder runs risk management against live market and pool data, with simulated capital, so you can watch it act on an order instead of reading about it — no account, no wallet, nothing installed.

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