<h2>Marginal Principle</h2>
<p>The <strong>marginal principle</strong> is a risk management concept that focuses on the potential loss in the next trade, rather than the total account equity. It's a crucial aspect of trading psychology and risk management, helping traders maintain discipline and control over their trading activities.</p>

<h2>How It Works</h2>
<p>The marginal principle works by setting a <strong>fixed risk percentage</strong> for each trade, typically between 1% to 3% of the account equity. This percentage is applied to the current account balance, not the total equity. For example, if you have $10,000 in your account and you set a 2% risk, you would risk $200 on each trade, regardless of your account's overall performance.</p>
<p>Here's how it works in practice:</p>
<ul>
  <li>Calculate the risk amount: <strong>Account Equity × Risk Percentage</strong></li>
  <li>Determine the position size: <strong>Risk Amount ÷ Stop-Loss</strong></li>
</ul>

<h2>Why It Matters for Traders</h2>
<p>Applying the marginal principle offers several benefits to traders:</p>
<ul>
  <li><strong>Consistency</strong>: It helps maintain a consistent risk level, preventing overtrading or risking too much on a single trade.</li>
  <li><strong>Discipline</strong>: By focusing on the next trade, it encourages traders to stick to their strategy and avoid revenge trading or chasing losses.</li>
  <li><strong>Long-term perspective</strong>: It promotes a long-term view of trading, ensuring that a single losing trade doesn't significantly impact the overall account equity.</li>
</ul>

<h2>Example</h2>
<p>Let's say you have a $10,000 account and you've set a 2% risk. You're looking at a forex pair with a 50 pip stop-loss. Applying the marginal principle:</p>
<ul>
  <li>Risk amount: $10,000 × 0.02 = $200</li>
  <li>Position size: $200 ÷ 50 pips = 4 standard lots</li>
</ul>
<p>So, you would open a position of 4 standard lots, risking $200 on the trade.</p>

<h2>Key Takeaways</h2>
<ul>
  <li>The marginal principle focuses on the risk in the next trade, not the total account equity.</li>
  <li>It helps maintain consistency, discipline, and a long-term perspective in trading.</li>
  <li>To apply the marginal principle, calculate the risk amount and then determine the position size based on your stop-loss.</li>
  <li>Using the marginal principle on <strong>MetaTrader 5</strong> with STB Provider ensures consistent risk management, even with up to 1:300 leverage.</li>
</ul>