Forex Risk Management: Position Sizing & Stops
A practical, step-by-step course that teaches pip-value math, position sizing formulas, stop-loss placement and drawdown control. You will finish able to size trades so a stop-out equals a precise % of your account, calculate pip values across pairs and justify stop placement. Demo practice recommended.
What you'll learn
- Calculate pip value for any FX pair in a USD account and convert for other account currencies
- Use the position-sizing formula so a stop-out costs exactly 0.5%, 1% or 2% of your account
- Determine lot size (standard/mini/micro) and required margin given leverage and price
- Place stop-losses based on structure and volatility (ATR) with quantified risk
- Set realistic risk-reward ratios and compute trade expectancy in dollars
- Calculate drawdown and required recovery percentages; model consecutive loss scenarios
- Create a simple daily risk plan and trade-ticket checklist to execute size and stops correctly
- Practice all calculations on a demo account and keep a trade journal to measure risk adherence
Inside the course
6 stages · 24lessons, easiest first. Here's a preview — the full lesson-by-lesson outline opens when you enroll.
Module 1 — Core definitions & account mechanics
Define the building blocks every trader must know: pip, lot, spread, margin, leverage, balance, equity and free margin. This module gives the arithmetic basis for all risk calculations and ends with a short quiz.
- What is a pip, lot and spread?30 min
- Margin, leverage and required margin formula35 min
- Account types, denomination and currency conversion30 min
- Practical checklist: what you must know before placing an order35 min
- 2Module 2 — Pip value calculations across pairs4 lessons + quiz
- 3Module 3 — Position sizing formulas and worked examples4 lessons + quiz
- 4Module 4 — Stop-loss placement and risk-reward4 lessons + quiz
- 5Module 5 — Drawdown mathematics and why 1–2% keeps accounts alive4 lessons + quiz
- 6Module 6 — Execution, journaling and practical routines4 lessons + quiz
Every lesson is long-form and fact-checked, with worked numeric examples, diagrams and an end-of-stage quiz. Enroll once — it's yours for life.
Sample the teaching first
We wrote a free in-depth guide on this exact topic — read it, and if the teaching style clicks, the course goes ten times deeper.
Read: Forex Risk Management 2026: Practical Rules, Position Sizing & StopsFrequently asked questions
Is this course really worth paying for?
Every Forex Fluency course is a deep, structured program — long-form fact-checked lessons, fully worked numeric examples, diagrams and end-of-module quizzes. At $19 it costs less than one impulsive, uneducated trade typically loses.
How do I access the course after paying?
Checkout takes a minute. Once your payment is confirmed you receive an access code by email — enter it on the My Learning page and every lesson unlocks instantly, forever.
Do I need a trading account first?
No. You only need a free demo account for the practice exercises, and we show you exactly when and how to open one — no deposit required.
Will this course make me profitable?
No honest school promises that. Education, risk management and disciplined practice are what separate the traders who succeed. This course gives you that foundation — the results depend on you.
Is it self-paced?
Completely. Lessons are written, not scheduled — read them any time, on any device, and your progress is saved as you go.