[kenazen]

There are 3 scenarios I am going to have to figure out, NonUSD/USD, USD/NonUSD, and NonUSD/NonUSD. I will start with NonUSD/USD first, in hopes it is the simplest. In this example, I try to figure out how much of my money to spend on the EUR/USD, assuming I have no other investments. I am deliberately trying to remove the "50" that was in the previous examples, since I was never sure when it was a "50 pip SL" or "50:1 Leverage".


Account Size: $2,000.00 (USD)
Core Equity: $2,000.00 (USD)
Pair: EUR/USD @ 1.1855/60
Stop Loss: 30 pips per Unit
Leverage: 20:1
Willing to Lose: 2% of Core Equity
Base is in USD ("EUR/USD")

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1) Determine USD amount willing to lose:

2% of $2,000.00 is $40
$40 is the amount I'm willing to lose


2) Determine Units to Buy:
Divide max loss by max pips-per-unit-loss

$40 / 0.0030 = 13,333 units

3) Determine un-leveraged units:

13,333 / 20 = 666 units

4) Determine cost of units:

666 * 1.1855 = $789.54 (USD)


So in my account of $2,000.00 - I would buy $789.54 USD worth of EUR/USD ?