Belt 3 of 5 · grading
Green belt quiz
Every question from all 5 lessons of Risk & Position Sizing, asked one at a time. Nothing is timed and nothing is submitted anywhere — the score is computed in your browser, and correct answers add XP to the counter in the header.
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1. Fixed-fractional riskRisk a constant fraction of current equity, and cap total open heat across correlated positions. Losing streaks then shrink your size automatically instead of your account.2. Placing a stop that makes sensePut the stop where the idea is falsified, add a volatility-scaled buffer, then size the trade so that distance equals your risk budget. Never widen a stop.3. Correlation between pairsCount risk by currency exposure, not by number of tickets. Correlation rises exactly during the shocks when you were counting on diversification.4. The mathematics of drawdownA 50% loss requires a 100% gain to recover. Expect losing runs as ordinary mathematics, and set a pre-agreed drawdown level that cuts size or pauses trading.5. Margin calls & stop-outsMargin level = equity ÷ used margin. Falling equity triggers a margin call and then a forced stop-out at whatever price exists — keep leverage and heat well below the limit.