[kenazen]

Here are some examples where I am trying to figure out how much of something to buy if I am willing to risk 2% with a 30 pip stop loss. There are 4 scenarios to determine the amount in USD. I dont really understand what I've done here, but I got some formulas out of "Getting Started in Currency Trading" by Archer & Bickford. My final numbers, like "13,333" you said is the amount I'm supposed to invest - but my account is supposed to only have $2,000 in it. If I use the 20:1 leverage, then comes out to a (more realistic) $666 like I mentioned. I'm *really* confused now, lol.

A) EUR/USD : USD in Quote
B) USD/JPY : USD in BASE
C) CHF/JPY (USD/JPY) : USD in Conversion Base
D) EUR/GBP (EUR/USD) : USD in Conversion Quote

Account Size: $2,000.00 (USD)
Core Equity: $2,000.00 (USD)
Stop Loss: 30 pips per Unit
Leverage: 20:1
Margin Percent = 100/Leverage = 5% = 0.05
Willing to Lose: 2% of Core Equity

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A) EUR/USD : USD in Quote

Pair: EUR/USD @ 1.1855

1) USD Profit = Price Change x Units Traded
2) USD Profit / Price Change = Units Traded
3) 40.00 / 0.0030 = 13,333

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B) USD/JPY : USD in BASE

Pair: USD/JPY @ 116.55

1) USD Profit = Price Change x Units Traded / Exit Price
2) USD Profit / Price Change = Units Traded / Exit Price
3) USD Profit / Price Change x Exit Price = Units Traded
4) 40.00 / 0.30 x 116.55 = 15,540

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C) CHF/JPY (USD/JPY) : USD in Conversion Base

Pair: CHF/JPY @ 89.15
Pair: USD/JPY @ 116.55

1) USD Profit = Price Change x Units Traded / Rate
2) USD Profit / Price Change = Units Traded / Rate
3) USD Profit / Price Change x Rate = Units Traded
4) 40.00 / 0.30 x 116.55 = 15,540

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D) EUR/GBP (EUR/USD) : USD in Conversion Quote

Pair: EUR/GBP @ 0.6841
Pair: EUR/USD @ 1.1855

1) USD Profit = Price Change x Units Traded x Rate
2) USD Profit / Price Change = Units Traded x Rate
3) USD Profit / Price Change / Rate = Units Traded
4) 40.00 / 0.0030 / 1.1855 = 11,247