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Proper risk management in forex trading includes setting stop-loss orders, calculating position sizes, using a favorable risk-reward ratio, diversifying investments, avoiding overleveraging, and regularly reviewing trades to enhance safety and success.
Risk Management:
LEVERAGE: It allows the traders to control larger positions with a smaller amount of capital.
STOP-LOSS and TAKE-PROFIT: The traders use the stop-loss to limit the potential losses and take-profit orders to lock in profits at a certain level.