Academy · a ten-minute course

Your first trade, without a market.

Three rooms, in the order a trade happens: build it, check it, live with it. Everything is invented and nothing is at stake.

Build it

Before any trade: where you get in, where you are wrong, where you would be content. Then the size that makes being wrong cost what you chose.

Drag a line up or down, or use the sliders. An invented chart of an example pair quoted in US dollars.

target: 1.0933

entry: 1.0853

stop: 1.0813

Share of the account to risk: 1% of an example 5,000

Order: Buy
To the stop: 40 pips
To the target: 80 pips
Risk to reward: 1 : 2.0
Size that makes the stop cost 1%: 0.12 lots · 50 ÷ (40 pips × 10 a pip)

Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose.

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