Trade Mechanics
From pips and lots to sizing and risk
Now that you understand how financial markets are structured, it’s time to learn how each trade is actually executed and calculated.
In this stage you’ll get familiar with key concepts like pips, lots, leverage, margin, spread, commission, and order types, and learn to calculate your position size and dollar risk precisely before entering a trade.
This isn’t about wrestling with complex formulas; the goal is to know how much capital each trade ties up, what costs you pay, and exactly how much leaves your account if your stop-loss is hit.
By the end of this stage, you’ll be able to size any trade (based on account balance, stop-loss, and risk percentage) in under a minute.
Prerequisite: Market Basics
What you’ll learn
8 lessons, each with a quiz- Pip · the smallest unit of price movement
- Lot sizes and position volume
- Leverage and margin
- Trading costs: spread, commission, swap
- Long and short positions
- Order types (market, limit, stop)
- Risk:reward and dollar calculation
- A full trade walkthrough, start to finish
References & further reading
For going deeper (optional). The structured path is our own course.
The full course covers all of this, step by step
Every lesson with full content, randomized quizzes, and saved progress. Finish the tier to earn a certificate. All inside your dashboard.
Start the Trade Mechanics courseFree · inside dashboard
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