Trading Capital (Deposit): What It Is and How to Protect It
In trading, your deposit is the money in your trading account that you trade with. It's not a bank deposit: it earns no interest, and you can lose it.
What a deposit is
When a trader says "deposit," they mean all of their trading capital on an exchange or with a broker. The phrase "blow up your deposit" means losing all or almost all of it.
How much to put in
- Only money you can afford to lose without it affecting your life.
- Not borrowed money and not money set aside for important goals.
- Start with a small amount — see how much money to start with.
How to protect your deposit
| Rule | Why |
|---|---|
| Risk 1–2% of your deposit per trade | A losing streak won't wipe out the account |
| A stop-loss on every trade | The loss is capped in advance |
| Low leverage or none | No risk of liquidation |
| A daily loss limit | No emotional attempts to win it back |
At 1% risk, even ten losing trades in a row will leave about 90% of your deposit. At 10% risk, about a third. How to avoid losing money on emotions is covered in how not to blow your account on emotions.
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- Your deposit is your trading capital, not an interest-bearing savings account.
- Risk per trade — 1–2% of the deposit.
- A stop-loss is mandatory, and leverage should be minimal.
Frequently asked questions
How big a deposit do I need to start?
One you won't mind losing while you learn. Many people start with tens or hundreds of dollars.
Can I top up my deposit after losses?
You can, but first figure out why the losses happened. Otherwise the new money will go the same way.
What should I do after blowing up my account?
Stop, review your trades in your journal, and go back to learning and a demo account instead of trying to win it back.
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