Deposit — the funds in your trading account that are used to make trades.
Your deposit size affects the amount of money you work with and what share of the deposit the result of a single trade represents.
Deposit size and risk
The same result in percentage terms means a different amount of money for different deposit sizes.
For example:
with a $50 deposit, a 2% loss is $1;
with a $500 deposit, a 2% loss is $10.
That is why, when determining position size, it is important to consider not only the deposit amount but also the acceptable total risk for the entire trading signal.
Risk calculation example
Let’s say you have set your risk per trading signal at 2% of your deposit.
2% risk by deposit size
| Deposit | 2% risk |
|---|---|
| $50 | $1 |
| $100 | $2 |
| $300 | $6 |
| $500 | $10 |
| $1,000 | $20 |
This is a training example that shows how risk is calculated. It is not a recommendation on deposit size or a profit forecast.
The actual result of a trade depends on market movement, position size, trading conditions and other factors.
Position size and risk level must be determined based on the trading instrument, your account terms and risk management rules.
Do not use these figures as a forecast of returns or a guaranteed trading result.
Check yourself
Deposit: 300 dollars. Risk per signal: 2%.
How much is that in money?
300 × 2% = 300 × 0.02 = 6 dollars.
The same percentage with a 1,000 deposit would give 20 dollars — the amount depends on the size of the account.
Common mistake. Taking the amount from someone else’s example: 2% is 10 dollars only with a 500 deposit. With 300 dollars, it’s 6.
In short
- The same risk percentage gives a different amount with a different deposit.
- Risk amount = deposit × risk percentage.
- This is the loss limit per signal, not a profit forecast.
- A larger deposit does not guarantee a larger profit.