All levels
Risk management course
How to size positions, protect your account, handle volatility and keep a disciplined trading routine.
- 01Why risk management mattersRisk management is the process of deciding how much financial uncertainty you can accept and setting rules to control your exposure. In this first lesson, you will learn why managing potential losses matters as much as analysing markets, and how it provides a foundation for every trading decision.3 min
- 02Position sizing and risk per tradeThe previous lesson explained why risk management matters. This lesson turns that idea into a practical calculation: how large a position can be for a chosen risk budget and stop-loss distance? You will also learn why the calculated loss is an estimate, not a guarantee, especially when trading leveraged CFDs.3 min
- 03The risk–reward ratioThe previous lesson explained how position sizing connects a planned loss to your account risk. This lesson introduces the risk–reward ratio: a way to compare that planned loss with a potential gain. You will learn how to calculate it, interpret it alongside win rate, and recognise why an attractive ratio does not guarantee a successful outcome.4 min
- 04Using leverage responsiblyThe previous lesson explained how the risk–reward ratio compares a potential loss with a potential gain. Leverage adds another dimension: it allows a relatively small amount of margin to support a larger market position. This lesson explains how to separate margin requirements from actual risk and use position sizing to keep exposure within a defined plan.3 min
- 05Margin calls and stop outsUsing leverage responsibly includes understanding what happens when an account no longer has enough equity to support its open positions. This lesson explains margin calls, stop outs and the figures used to monitor them. These account protections do not remove trading risk: leveraged CFDs carry a high risk of loss.4 min
- 06Volatility, gaps and slippageThe previous lesson explained margin calls and stop outs. This lesson looks at how volatility, price gaps and slippage can change execution prices and make losses larger than expected. Understanding these effects helps explain why a planned exit price is not always an achievable price, especially when trading leveraged forex and CFDs.4 min
- 07Drawdowns and recoveryDrawdowns are part of trading, but their size and duration can affect both account equity and decision-making. This lesson explains how to measure a drawdown, why recovering a loss requires a larger percentage gain, and how a structured risk process can help you respond without increasing exposure simply to recover losses.3 min
- 08Trading psychology and disciplineAfter exploring drawdowns and recovery, this final lesson examines how emotions can affect the way traders apply risk controls. Trading psychology is not about removing fear or becoming confident in every decision; it is about recognising pressure and using a repeatable process when outcomes are uncertain. CFDs are leveraged products and carry a high risk of loss.4 min
Practise what you learn
Open a free demo account and try it with virtual funds first.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Academy lessons are general education only and are not investment advice. Risk disclosure