Forex Risk Management for Indian Traders: Starting Capital and Position Sizing

One of the most important early decisions for Indian forex beginners: how much starting capital and how to size positions. **Minimum viable capital for NSE currency trading:** NSE USD/INR lot = $1,000 nominal (~₹84,000). Margin required is approximately ₹3,000–₹4,000 per lot on NRML position. Recommended starting capital: ₹50,000 minimum. This gives you room to trade 1–2 lots while keeping risk manageable. **The 1% rule applied to Indian forex:** Risk 1% per trade. On ₹50,000 capital = ₹500 max risk per trade. As you grow the account, maintain the 1% rule — increase lot size proportionally to account growth, not to "make more money faster." **Leverage warning:** Intraday margin on NSE can give you 5–10× leverage. Just because the margin is available doesn't mean you should use it. Use leverage to reduce your required capital, not to increase your lot size. **The starter plan:** - ₹50,000 capital - 1 lot maximum - 1% risk rule - Trade USD/INR only for 6 months What's your current capital and how are you sizing positions?