Long & Short – Same Currency Pair

After you have made the decision of your risk amount whether it be 1% or 2% for one currency pair.

If the hypothetical amount of risk you are using is 2% on a currency pair such as the EUR.

That means you can go Long with a total of 2% risk on that currency pair BUT you can also go Short 2% on that currency pair as well.

You can only go a max of 2% in one direction of the trade but you would have a total of 4% combining both directions of risk being used on that currency.

You could NOT go 3% Long and 1% short – That is not correct.