Forex Trading Math & Risk Management

What you'll build

What you will be able to do

Each lab ends with a concrete result that you build yourself and the checker confirms, cell by cell.

• Split six currency pairs into base and quote currency, set the right pip size and measure each spread in pips.
• Turn lots into units, work out what one pip is worth in the quote currency and convert it into the USD account currency.
• Work out pips, P&L in the quote currency and P&L in USD for six closed trades, long and short, and add them up correctly.
• Calculate the notional value and margin of three open positions, the account's margin level and how much more loss it can take before a stop-out.
• Size five trades so that each one risks exactly 1% of the account if its stop-loss is hit, and round the sizes down to broker lot steps.
• Measure risk and reward of five trade plans, turn them into R:R ratios and work out the win rate each plan needs to break even, with and without costs.
• Build EUR/JPY and EUR/GBP bid and ask prices from USD pairs and check whether a broker's EUR/JPY quote is consistent with them.
• Add overnight swap to twelve journal trades, then measure the win rate and the expectancy per trade.