At The Trading Pit, we want traders to be smart and responsible. Risking a big part of your account on one trade isn’t smart — it’s gambling.
Gambling might feel exciting, but it often leads to quick losses, bad decisions, and giving up too soon.
Successful trading is built on consistency, discipline, and good risk management — not luck.
✅ Our Recommended Risk Management Practices
To trade in a safe and smart way, we recommend following these limits for each trade idea:
What’s a Trade Idea?
A trade idea is a group of trades based on one market opinion.
For example, if you’re believe that the US dollar will go up and open multiple trades based on that, they count as one idea.
This helps you avoid putting too much into the same market direction.
Why Small Risk Is Better for Long-Term Success
Even the best traders lose sometimes. That’s normal. But:
If you risk too much on one trade, you can blow your account in just a few trades.
Losing 3%–4% in one trade means you’re one step away from breaking your account rules.
Traders who risk too much are often stressed, emotional, and more likely to make mistakes.
On the other hand, small, controlled risks let your trading strategy play out over time.
You’ll feel more relaxed, make better decisions, and have more chances to win in the long run.
Trade Small to Trade Strong
Risking 1%–2% per trade idea won’t guarantee profits, but it:
Helps you survive losing streaks
Keeps your emotions under control
Builds confidence in your strategy
Gives you more chances to succeed
Think of trading like a long game — not a race.
The goal isn’t to win big on one trade but to win consistently over time.
How Leverage and Margin Work
CFD trading lets you use leverage — this means you can control bigger positions with less money.
It sounds great, but it also increases your risk. If you’re not careful, you could lose a lot very quickly.
That’s why we recommend using less than 30% of your balance as margin.
This keeps you safe, even when the market moves fast or in the wrong direction.
How We Watch Risky Behavior
We have a Risk Team that keeps an eye on how traders manage their risk.
This helps keep trading fair and protects traders from bad habits.
Here’s what might happen if we see risky behavior:
Soft Breach (Warning):
You’ll get a warning if you risk too much. This gives you a chance to fix it without any penalty.
Risk Controls Added:
If risky trading continues, we may set rules on your account — like not allowing trades above 2% risk.
Hard Breach (Account Breach):
If warnings are ignored and high risk continues, your account may be breached or closed.
These rules aren’t meant to punish you — they’re here to help you stay safe and improve as a trader.
🏁 Final Words: Trade Smart, Trade Long-Term
Risking less than 2% protects your money and keeps you calm
Using less than 30% margin helps you avoid getting stuck in big trades
These rules are here to help you grow and become a consistent trader
Trading is not about getting rich quick — it’s about building strong habits and winning over time.
We support traders who take their trading seriously and stick to solid, consistent strategies.