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Old 26-12-2005, 05:45   #6
kenazen
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Re: How much to buy w/2% risk of $1k and w/50pip SL?

Quote:
Originally Posted by MickMason
For simplicity I found it's easier to forget about margin and leverage.....

Your account is $1000
Your maximum risk is 2% ($20)
Your stop loss is 50pips
Divide $20 by 50pips = 40 cents per pip
Trade size 4k

That's nice and simple. However, my trading software shows "available units", and on EUR/CHF at least - "1 pip = 0.00 USD". So if I knew the USD $ amount to buy, I'm not sure how easy it would be to do on non-USD paris.

I'm guessing my "1/100th of available units" will always work, though I need to learn the math if I'm going to be serious about this stuff.
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