What are you trading?
Forex is the currency market. The EUR/USD price shows how many US dollars one euro costs. This guide covers retail over-the-counter forex trading, where the agreement with the provider sets the trading terms. Such an OTC position is not a direct trade in an exchange order book.
CFD stands for contract for difference. It allows you to trade price changes in an instrument such as an index. A label such as Nasdaq or NAS100 does not tell you the contract size. A Nasdaq CFD and CME NQ futures are different instruments; you cannot assume they have the same value per point.
Work out the monetary value of a lot
Position size in forex is often expressed in lots or currency units. If the specification defines one lot of EUR/USD as 100 000 EUR, then 0.1 lot is 10 000 EUR. Check the minimum size and permitted size increments for the instrument and platform you use.
Hypothetical example: a USD account holds a 0.1-lot EUR/USD position, with one lot equal to 100 000 EUR and one pip equal to 0.0001. Each pip is then worth 1 USD. An adverse move of 20 pips produces a 20 USD loss before commissions and other costs. The actual fill price of a stop order may differ from the planned price.
Opening and holding costs
Include the spread, any commission, and the cost of holding the position in your calculation. Overnight financing depends on the instrument, the direction of the position, and the provider's terms; it can also result in a credit. The same price move can therefore produce different net results across accounts.
What the volume indicator measures
MetaTrader tick volume counts incoming ticks, or price data updates, over a given period. It differs from the volume of completed trades. For an over-the-counter instrument, the data you see at your broker does not cover the entire global currency market. Before using volume analysis, establish what the selected indicator actually measures.
The prop account adds its own limits
This site's exercises offer 10k, 25k, 50k, and 100k accounts with a learning model based on a 5% daily loss limit and a 10% overall loss limit. The overall equity floor is fixed. This structure matches the FTMO 2-Step model, although other account types can have different rules even within the same firm.
To calculate a trade's risk, you need to know both the instrument's monetary value and how much room remains before the account reaches its loss limits. A smaller lot size reduces the effect of a price move on the account; it does not change the prop firm's rules. The 5% limit used here is not a recommendation to risk that much on a single trade.