LESSON 10 ~11 MIN · AT YOUR OWN PACE

Risk management calculations

Understand Entry, Stop, quantity and planned loss.

CHECK YOUR UNDERSTANDING

Do you remember what you read?

Four practice questions. Turn on JavaScript for the interactive quiz.

  1. Entry 100, Stop 95, Quantity 10: what is the planned price loss?
    • 5
    • 50
    • 500
  2. With the same Entry and Stop, what happens to the risk if you double the quantity?
    • It doubles
    • It halves
    • It stays the same
  3. What does a 2:1 reward-to-risk ratio guarantee?
    • Profit
    • 2 wins
    • Nothing
  4. Should you use this share formula directly for gold lots?
    • Yes
    • No: first understand the contract size and the conversion
    • Just look at the symbol
Sources and further reading

Sources in English · Content reviewed on 28 September 2026. We made the examples for learning; they are not broker recommendations.

Investor.gov · Order types (opens in a new tab)CFTC · Forex and risk (opens in a new tab)FINRA · Day trading risks (opens in a new tab)