Module 2 · Stops, sizing and costs
Stops, sizing and costs — Trading Academy
Turn clearly stated price and contract assumptions into a cash-risk estimate without rounding past the chosen budget.
First lesson: Measure a stop distance. No sign-up required.
Lesson 1 of 3
Measure a stop distance
Not completed
By the end of this lesson
- Convert an entry-to-stop difference into pips.
- Separate a stop trigger from the eventual execution price.
Suggested preparation: Read a currency quote, Separate margin from risk
Work it through
Measure the distance from an illustrative EUR/USD long entry of 1.1050 to a stop at 1.1025. Record the quote side and the exact-fill assumption separately.
Lesson 2 of 3
Calculate a position size
Not completed
By the end of this lesson
- Combine cash budget, stop distance and pip value.
- Apply lot increments without rounding above the modelled budget.
Suggested preparation: Measure a stop distance
Work it through
Use a USD 100 illustrative budget, a 25-pip stop and USD 10 per pip per full lot. Calculate size first, then change the stop to 50 pips while keeping the budget fixed.
Lesson 3 of 3
Include costs consistently
Not completed
By the end of this lesson
- Distinguish fixed cash reserves from fees charged per lot.
- Avoid subtracting spread twice when executable prices already include it.
Suggested preparation: Calculate a position size
Work it through
Recalculate the USD 100, 25-pip example after reserving a fixed USD 5 for costs. Then explain why a USD 7-per-lot commission needs a different formula.
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Prepared by InsomniCapital. Checked 2 October 2026. Sources and detailed assumptions appear in each linked guide. Read the risk disclosure.