A short case study on trading risk and leverage using forex trading as an example:

Traders are risk takers. We accept the market risks in the hope of making a killing making a living from trading the markets. Here I will discuss a case study on the consequences of leverage and the critical decision whether to "risk little or to risk the lot." I will use the forex markets for this case study. Similar concepts apply across other markets, but this particular concept works well with the foreign exchange markets due to their volatility. You may not agree with me with this case study and I reserve the right to change my position on this at anytime. Also, this is written for people with some experience in trading forex.

Read the full article: "Risk Little, Risk The Lot"