RISK & PREPARATION

Start with what could go wrong.

Understand position-size assumptions and the limits of estimates.

Risk is part of the decision

Financial markets can move against you. Leverage can magnify losses, and some products can produce losses exceeding the initial funds. No label, chart or indicator can remove that possibility.

Separate exposure from planned risk

The size of a position and its planned risk are different quantities. A position-size estimate uses assumptions about a stop distance and the value of a price movement. Those assumptions must match the actual instrument and broker contract.

Understand the estimator

The Forex estimator calculates planned risk as account balance multiplied by your selected risk percentage. It divides that amount by stop distance in pips multiplied by pip value per standard lot. The result is a lot-size estimate. Its unit conversion assumes a standard lot is 100,000 base-currency units.

Know the limitations

Spread, fees, slippage, price gaps, exchange-rate changes and contract differences can affect actual results. A stop order does not guarantee execution at its stated price. An estimate is not a maximum-loss guarantee.

Your next step

Open the risk estimator, change one input at a time and observe the arithmetic. Confirm pip value, contract size and permitted order increments with the broker before relying on any estimate.

Educational information does not constitute personalised investment advice. Always assess independently.

EXPLORE THE EXPERIENCE

Start with the bigger picture.

Explore the scanner, filters and market charts.

ILLUSTRATIVE WORKFLOW
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