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Com) Why the Risk Management Calculator Does Not Suck The advantage of using this tool is that it goes further than the rudimentary tool on the binary options platforms which show the trader how much the trade will cost. The risk management tool usually looks at the total picture, and by applying the maximum allowable risk management percentage of 5 that is recommended for use by traders in financial trading, it is possible for the trader to know exactly how much he should be investing into the market considering his account size.

The trader will therefore be in a better position to see if the cost of a trade he intends to enter will leave him overexposed to the market or not. Why the Risk Management Calculator Sucks as a Binary Options Tool It is strictly an informational tool.