What is Risk management? Risk ratio and Leverage

What is Risk management?

     One of the most important sections in forex trading is risk management. Money management will not only protect your account but it can make you profit in the extended run.  Risk management is also same as money management. Before starts trading you have to fix your entry level, exit level, stop loss and take profit values. Your risk ratio per trade always be a small percentage of your total investment. Approximately 2% risk is good. For example your investment is 10000$, the maximum loss allowable must be 2% that means 200$. Another big risk management is leverage. Low leverage is safe for your account.