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Position Sizing for a Prop Challenge
2:47 · 7 chapters · Forex lessons, part 77
What you'll learn
Most prop challenges are failed by size, not strategy: here's the exact math to size every trade from the firm's loss limits.
Go further with our written guide on this topic, browse all the free Learn Forex lessons, or check today's market in our forex news.
- Key point 1
- How to choose risk per trade from the daily and maximum loss limits
- Key point 2
- The lot-size formula: risk ÷ (stop in pips × pip value per lot)
- Key point 3
- Why correlated trades should be counted as one
- Key point 4
- When and how to cut size after losses
- Key point 5
- A five-step sizing checklist for every trade
Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.
More forex lessons
The video is presented by an animated host with a computer-generated voice; the research and checks are by the FX Recap team. Risk warning: forex and CFD trading carries a high risk of losing money because of leverage, and most retail accounts lose money. This is education and review, not financial advice. FX Recap may earn a commission from some broker links; see our affiliate disclosure.