How can I work out the P/L in $?

[fernandorc]

It is not quite clear for me is how the amount I risk (1% of the entire account per trade) enter into consideration when calculating the profit or the loss.
For example…
I’ve got an account with $1500… I’ll only risk 1% of that, which means: $15.
If I set my target to 5 pips per trade initially, how much I could potentially make in this trade if I buy and it goes along with me the trade till it hits my target?

That’s all

[Master_Tang]

It’s a matter of lot sizes.

1% of your account being $15, if you traded nano lots at a penny a pip, you have 1500 pips to use for a stop, and you gain $0.05 for your 5 pip trade. If you traded micro lots at $0.10 a piece, you have 150 pips to play with for stops, and your 5 pip gain will net you $0.50. If you go minis, at $1.00 a pip, you have a 15 pip $15.00 stop loss, and your 5 pip gain will get you $5.00.

A full sized 100k position would stop you out at 1.5 pips.

I’m basing all this off the major pairs. When you get to the crosses you get odd numbers based on the exchange rates.

[fernandorc]

It’s a matter of lot sizes.

1% of your account being $15, if you traded nano lots at a penny a pip, you have 1500 pips to use for a stop, and you gain $0.05 for your 5 pip trade. If you traded micro lots at $0.10 a piece, you have 150 pips to play with for stops, and your 5 pip gain will net you $0.50. If you go minis, at $1.00 a pip, you have a 15 pip $15.00 stop loss, and your 5 pip gain will get you $5.00.

A full sized 100k position would stop you out at 1.5 pips.

I’m basing all this off the major pairs. When you get to the crosses you get odd numbers based on the exchange rates.

SO, LET ME SEE IF I UNDERSTOOD PROPERLY…
Let’s put as an example: I want to trade 2 mini lots…this means $2 a pip. My range of space for taking profits or cutting losses would be 20 pips. If I want to risk only 1% ($40), I should have in my account: $4,000. If I went long (or bought) and it went along me, I would have made $40 in profits (and the same if it went against me, I would have lost $40) … is that ok?
and… the same happens for standard lots? it would be 1 lot = $10 a pip?

and… does this thing of lots is the same of that of leverage? I mean, if I trade 1 standard lot, is that equal to 100:1? or 2 lots: 200:1?

[Cdawg]

SO, LET ME SEE IF I UNDERSTOOD PROPERLY…
Let’s put as an example: I want to trade 2 mini lots…this means $2 a pip. My range of space for taking profits or cutting losses would be 20 pips. If I want to risk only 1% ($40), I should have in my account: $4,000. If I went long (or bought) and it went along me, I would have made $40 in profits (and the same if it went against me, I would have lost $40) … is that ok?
and… the same happens for standard lots? it would be 1 lot = $10 a pip?

and… does this thing of lots is the same of that of leverage? I mean, if I trade 1 standard lot, is that equal to 100:1? or 2 lots: 200:1?

Your original post indicated you wanted to make 5 pips per trade so a $2 a pip that would be $10.00, with a stop of 20 pips or $40.00. So you are risking $40.00 to make $10.00… Now if you change your pip goal to 20 pips then you would be risking $40.00 to make $40.00

Yes for 1% to be $40.00, your account should be $4,000.00

Leverage is what it costs you to trade per lot, and doesn’t factor into the above 100:1 or 200:1, the cost per pip is still the same.

I suggest rereading the baby pips school…

Cheers