3min chapter

The Trade Busters cover image

35 - Determining Trade Size with the Risk Calculator

The Trade Busters

CHAPTER

Using a Credit Target to Scale Up Your Trades

If you're using 40% 50% it's going to be humongous right so you can no longer use buying power really as a gauge of your risk. You want to use something like this risk calculator with the credit targeting to get a good idea about how much money is being put at risk. If you wanted to sell a larger product or if your account was so small you couldn't sort of fit any of the products to your credit target you can artificially boost the size of the trades without sizing up the risk so to speak.

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