Practical part
First, the same steps you take before a real trade: calculate the risk and position size, put the steps of handling a trade in order and make a decision in a given situation. Your answers are checked right away, with explanations. This part is for you: it does not count toward your test result.
Deposit of $800, risk limit per trade — 1.5%.
How many dollars is the acceptable loss?
Acceptable loss = deposit × risk percentage.
800 × 1.5% = 800 × 0.015 = $12.
Common mistake. Mixing up 1.5% and 15%: $120 is ten times the limit.
Same account: the acceptable loss is $12. The distance to the stop loss is 30 points, the point value is $10 per lot, and the volume step is 0.01.
What is the position size in lots?
Loss per lot: 30 × 10 = $300.
Position size: 12 ÷ 300 = 0.04 lots.
The number is already a multiple of the 0.01 step — no rounding needed.
If you had got, say, 0.047, you would round the position size down to 0.04: rounding up would push the risk over the limit.
Common mistake. Rounding up “to a round number”: 0.05 lots would mean a risk of $15 with a limit of $12.
Put the steps of handling a trade in order
The order follows the life of a trade: the decision comes before entry, the check right after opening, while the trade is open you do only what the plan provides for, and the review comes after closing.
Common mistake. Skipping the check after opening. That is exactly when you can see that the stop wasn’t set or that the command opened a duplicate position.
A signal on EURUSD arrived on time, and the price is within the entry range. In ten minutes, the central bank will announce its interest rate decision.
What should you do?
Explain why you won’t enter this trade
Signal: XAUUSD — SELL, Entry 3350, SL 3362. You opened Telegram half an hour later: the price is already at 3338. Two or three sentences: which rule applies here and what you do next.
Write your answer — the model answer will then appear.
I’m not entering: the price has moved 12 away from Entry toward the target, so the signal is outdated. Entering at the current price would be a different trade: the stop is farther away and the target is closer. I’ll wait for the next signal and won’t chase the price.
A good explanation names the rule — “don’t chase a missed signal” — and how entering at the current price changes the trade. A decision like this can be checked and repeated.
Common mistake. Explaining the decision to skip with a feeling (“something doesn’t feel right”) instead of a rule. A decision you can’t put into words can’t be repeated either.