Effect of deposit size on trading success

It is no secret that Forex profit is considered as a percentage of the deposit. Therefore, 1% of the contribution of 100 thousand dollars will be equal to $ 1000. If the size of the deposit is 100 USD, then 1% of the profit will be equal to only 1 dollar. With the same labor costs of a trader, the profit will be a thousand times less. This fact, of course, takes place. However, the size of the deposit is not a determining factor in the success of the trader. In the first place is the experience of the merchant.

The size of the deposit does not affect the success of the trader

There are many living examples where traders, due to their inexperience, lost impressive multi-million dollar deposits. Together with the large size of the initial investments, the total trade turnover also increases, respectively, both profit and possible loss grow. Do not forget that the loss is also considered as a percentage of the deposit.

At the same time, quite often the opposite situation occurs when a deposit “accelerates” several tens of times from relatively small amounts. Examples of such impressive trading results can be successfully observed in various competitions regularly held by many brokers. In this case, a certain role is played by the luck factor, because in the long run, aggressive traders always lose to their more conservative comrades.

Experience is a key factor in trading success.

The size of the trader’s profit is not determined at all by the size of the deposit, but by trading experience. A professional trader uses large capital as a “safety cushion” without carrying out an inappropriate increase in trading volumes, resulting in increased risk. An inexperienced trader can consider a large deposit as free funds that need to be put into trade as soon as possible. Perhaps even the use of leverage, which tens of times increases risk levels.

Regardless of the size of the deposit, the trader should not risk more than 1% of the amount of all funds. This value is the maximum allowed and is usually used in relation to relatively small deposits (up to $ 10,000). Adherents of a conservative and balanced approach to trade do not risk at a time more than 0.1–0.25% of the amount of their own investments. This prevents serious drawdowns even in the case of a series of losing trades.


The determining factor for success in trading is not the size of the deposit at all, but the trader’s own experience and practice. A hypothetical comparison of two traders can be given. Suppose one of them is an experienced trader who adheres to a conservative approach to trading, with a deposit size of 2000 USD. And the second is a beginner who prefers an aggressive trading strategy, but with a deposit of 10 thousand dollars. In the short term, a novice trader is likely to significantly overtake the first one due to the size of his deposit. However, in the medium and especially long-term perspective (more than a year), the first player will be almost guaranteed to win.