Trading capital refers to the amount of money a trader uses to make a trade. Money management will minimize the risk of losing your trading capital and maximize the chances of growing it. A simple rule of thumb is to never put more than 1% of your trading capital at risk at one time.

Trading capital is the money available to a trader or investor that can be used to trade or invest in securities. Typically, trading capital is made up of the amount of cash on hand for an investor and the amount of funds borrowed from a broker.