Risk Management
How to Calculate Risk Per Trade
Planned monetary risk is an amount assigned to a trade scenario. A percentage makes that amount comparable with account balance, but it does not guarantee…
Category: <span>Risk Management</span>
Translate a risk budget into position size and distinguish planned risk from actual execution outcomes.
Understand the numbers behind position sizing, risk and margin. Explore the calculators.
Risk Management
What Is a Risk-to-Reward Ratio?
A risk-to-reward ratio compares the loss distance to the intended gain distance. It summarizes the planned price geometry of a trade without claiming that either…
Risk Management
How to Choose a Stop-Loss Distance
A stop-loss distance is an input to position sizing, not an output determined by a preferred lot number. This guide explains the mathematical relationship without…