Forextity Academy

Learn the Math Behind the Tools

Every calculator on Forextity is built on a real concept traders need to actually understand, not just plug numbers into. These guides explain the mechanics in plain language, with worked examples, and link straight to the calculator that does the math for you.

Risk Management
Risk of Ruin: Why a 50% Win Rate Can Destroy an Account
Win rate says nothing about survival. The maths of ruin, losing streaks, expectancy and Kelly sizing — with a free Monte Carlo simulator that runs your own numbers.
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Reference
Pip Value, Spread Cost and Margin: Reading a Live Table
What each column of the live Pip & Margin Matrix means, how to calculate it by hand, and the contract-size assumptions behind every figure.
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Risk Management
Trading Economic Releases Without Getting Stopped Out
Why spreads widen, why the first spike is usually not the direction, and a practical pre-release checklist using a real, live economic calendar.
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Risk Management
Position Sizing Explained: The Math That Keeps Traders in the Game
Why position size — not stop-loss placement, not win rate — is the single biggest lever you control. Includes the exact formula and a worked example across three account sizes.
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Fundamentals
Understanding Pip Value: Why the Same Trade Costs Different Money on Different Pairs
A pip isn't a fixed dollar amount — it changes with the pair, the lot size, and even which currency is quoted second. Here's the actual math, broken down pair by pair.
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Strategy
Risk/Reward Ratios: Why a 70% Win Rate Can Still Lose You Money
Win rate alone tells you almost nothing. The relationship between win rate and risk/reward is what actually determines whether a strategy is profitable — with the break-even math shown in full.
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Fundamentals
Margin and Leverage: How They Work, and How They Wipe Accounts
Leverage doesn't just amplify profits — it amplifies the exact same move in both directions, and margin calls happen faster than most new traders expect. The real mechanics, explained with numbers.
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Risk Management
The Drawdown Math Nobody Explains: Why a 50% Loss Needs a 100% Gain
Losses and the gains needed to recover them are not symmetrical — and the relationship gets brutal fast. The exact formula, a full recovery table, and why this changes how you should size risk.
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Prop Trading
Passing a Prop Firm Challenge: What the Rules Actually Mean
Daily drawdown vs. max drawdown, trailing vs. static, consistency rules — the fine print that fails more traders than the profit target does. Explained in plain terms.
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Trading Psychology
Revenge Trading: The Psychology Behind It, and How to Actually Stop
Why the urge to "win it back" is so strong right after a loss, what's happening in your decision-making when it hits, and concrete mechanisms — not willpower — that interrupt the pattern.
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Fundamentals
Currency Strength Meters: How to Read One and Actually Use It
A single pair only tells half the story. How relative currency strength is calculated, and how to use it to find cleaner trade setups.
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Fundamentals
ATR and Volatility: How to Set Stop-Losses That Actually Fit the Market
Why a fixed-pip stop-loss makes no sense across every pair and condition, and how Average True Range fixes that.
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Fundamentals
Trading Session Overlaps: When Forex Actually Moves
Forex trades 24 hours a day, but volume and volatility are not evenly spread across them. When the market actually moves, and why it matters.
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Reference
Forex Trading Glossary
35+ essential trading terms explained in plain English, from ATR to win rate, with links to the full guides where relevant.
Browse the glossary →

How the Forextity Academy works

The Academy exists because a calculator only helps you if you understand what it is doing. Every guide here explains one concept from first principles, shows the arithmetic with a worked example you can reproduce by hand, and links to the Forextity tool that automates it. Nothing is presented as a trade recommendation.

Who writes and reviews it

Editorial responsibility

Mofor Devalois Apongshine, Founder & CEO of Forextity, holds final responsibility for every guide and calculator on the platform. Content is written and reviewed in-house — we do not publish under invented author names or fictional credentials, and where a guide relies on a standard formula or a market convention, that standard is named so you can verify it independently.

Our editorial rules

Where to start

  1. New to risk? Begin with Position Sizing Explained — it is the single biggest lever a retail trader controls.
  2. Trading crosses? Read Understanding Pip Value before you size anything that does not end in USD.
  3. Using a prop firm? Work through the prop firm challenge guide and then track the limits with the Prop Firm calculator.
  4. Losing discipline after losses? Revenge trading and how to stop it covers the mechanics, and the free Emotion Reset tool is the in-the-moment fix.

Every guide links to a live calculator that does the arithmetic for you, using the same source-verified prices shown across the site.

Open the calculator suite

Academy FAQ

Is the Forextity Academy free?

Yes. Every guide, calculator and tool on Forextity is free and requires no account. There is no paywall and no premium tier.

Do these guides tell me what to trade?

No. They explain how concepts such as position sizing, pip value and drawdown mathematics work. Forextity does not publish signals, trade calls or personalised financial advice.

How current is the material?

Guides are reviewed whenever the tool, formula or data source they describe changes, and the review date is shown on each page. Corrections are made as soon as an error is confirmed.

Can I use these guides to learn from scratch?

They assume no prior knowledge beyond basic arithmetic, but they are focused on risk and mechanics rather than a beginner's market overview. Start with position sizing and pip value, then move to risk/reward and drawdown recovery.

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