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Work the risk before the trade.
Twelve short decisions take you from basic position risk through costs, shared currency exposure, expectancy, losing runs and fictional prop-limit calculations. Choose an answer and the full working appears straight away.
Which statement matches this position plan?
A £10,000 account caps one trade at 1%. The stop is 20 pips away. At 1.00 standard lot, the pair is worth £10 per pip. The proposed size is 0.50 lot, with £50,000 notional exposure at an illustrative 30:1 leverage ratio.
- Account
- £10,000
- Risk cap
- 1%
- Stop
- 20 pips
- Size
- 0.50 lot
Pick an answer to reveal the arithmetic and reasoning. Your first choice counts for this run; nothing is saved.
The neat calculation is only the plan.
The CFTC explains that OTC forex uses margin, leverage amplifies gains and losses, and spreads, fees and other charges affect the result. Investor.gov's general stop-order bulletin also explains why a stop trigger may fill at a different price in a fast market. Your broker's agreement and order policy control the exact mechanics on your account.
CFTC forex customer advisory Investor.gov stop-order bulletin