Risk & position sizing
Position size, pip values, margin, costs and the arithmetic of risk. Each guide includes a worked example and links to its related tool.
9 of 9 guides
Position sizing, step by step
A worked EUR/USD example, account-currency checks and the effect of broker lot increments.
Pips, lots and account currency
Keep base units, quote-currency P&L and account-currency totals separate with a checkable cross-rate example.
Margin is not your maximum loss
Compare the notional, margin and planned stop loss of the same position without confusing their roles.
JPY pairs: from stop price to account-currency risk
Follow a USD/JPY example from a 0.30 price difference to 30 pips, then check the conversion and lot size.
Trading costs and your risk budget
Work through fees, spread double-counting and a cost-aware position-size example using a fixed cash budget.
Drawdown recovery: why a 20% loss needs a 25% gain
Understand the changing percentage base behind drawdown recovery, with a $10,000 example and clear limits on what the calculation means.
Reconcile a Closed Forex Trade with a Historical Conversion Rate
Rebuild a completed trade in account currency, check the conversion direction, and separate converted profit from charges.
Why a Forex position-size result rounds to zero
See how a broker lot increment interacts with a cash risk budget, and which inputs to verify when a rounded position is zero.
Break-even win rate: why a 2-to-1 chart ratio excludes costs
Understand what a chart-distance break-even percentage leaves out, and how an explicitly hypothetical fixed-cost model changes the arithmetic without estimating trading probability or success.