- Home
- Learn
Trading risk & position sizing guides
Clear answers to the questions traders search for, with worked examples and a free calculator for each. Written to be read in five minutes.
- 9 guides
- Worked examples
- Free calculators
How much should you risk per trade?
Most professional traders risk between 0.25% and 2% of their account on a single trade. Here is why, what happens at higher levels, and how to pick a number that fits your strategy.
Read the guide →5 min readHow to calculate position size
Position size turns a risk rule into a number of shares, contracts or lots. Here is the formula, three worked examples and the mistakes that cause oversized trades.
Read the guide →5 min readWhat is risk of ruin in trading?
Risk of ruin is the probability that you lose so much that you can no longer trade, or no longer want to. It is driven mostly by how much you risk per trade.
Read the guide →5 min readWhy a 50% loss needs a 100% gain
If your account falls 50%, you need to double what is left to get back to even. The math is simple, and it is the strongest argument for controlling drawdowns.
Read the guide →5 min readWhat is a good risk to reward ratio?
There is no single good ratio. A ratio is only good in combination with your win rate. This guide shows the win rate you need at each ratio and how to judge your own.
Read the guide →5 min readWhat is expectancy in trading?
Expectancy is the average amount you make or lose per trade over many trades. A positive expectancy is the foundation of any profitable strategy.
Read the guide →5 min readWhat is a pip and how do you calculate pip value?
A pip is the standard small step in a forex price. Its money value depends on your position size, the pair and your account currency.
Read the guide →5 min readHow to use Fibonacci retracement
Fibonacci retracements mark common pullback depths after a strong move. They work best as areas to watch, combined with other signals.
Read the guide →5 min readShould you average down on a losing trade?
Averaging down means buying more after a price fall to lower your average cost. It lowers the bar to break even, but it raises your risk.
Read the guide →Last updated October 2026. For education only. Not financial advice.