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The master cylinder volume is to displace the area of the of the pistons or wheel cylinders.A proportioning valve controls the pressure.A stock valve and a race valve do the same thing they open and close the passing orfice which controls the pressure,ie: putting your finger on a garden hose to increase the pressure.Small race calipers with small pucks can use a small MC(less area,less volume)large street calipers with large or multiple pucks need larger MC bores and resovires. By adjusting the size of the passing orfice(making it smaller) increases the pressure,usually in to increase and out to decrease on the race valves

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So you sre saying that a propvalve is nothing more than a finger on the hose.
Dont get me wrong here i want to learn this but wouldnt the finger keep the caliper pistons from returning and drag the rotors?
Or is it a spring actuated valve of somekind?

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Your not comprehending this at all,the pressure is only when the piston is depressed in the master cylinder which inturn pushes the fluid through the system pushing the pucks and applying the brakes,when the pedal is released so is the pressure,simply theory of hydraulics pressure applied through the pedal ratio,applied through mc bore/stroke,controlling a given volume at a given pressure.Change in pressure can be regulated by the size of orfice it passes through.The small orfice holds back the volume(under pressure) and the orfice creates the additional pressure.ie: a nozzle on a fire hose or pressure washer.Sorry I can't explain it any simpler,hope it helps you understand.Another example would be a diesal fuel injection system where as a pump generally pumps fuel at 45psi to the injector nozzle the nozzle orfice releases fuel at 1800psi.