How to determine pips required for %1 return?

Beginner Questions
1

I am losing mind trying to figure this out. I am trying to figure out a formula to tell me how many pips I will need to get, to earn a certain %1 profit. For example:

Lets say I have $500 in an Oanda account with 10:1 leverage. I want to earn a 1% return. The current EUR/USD is 1.1200.

Attempt #1)

My goal should be $5, which is $500 x 1%.
The 10:1 leverage means I really only need to earn $.5 (50 cents).
$500 will buy 446 Euros (500 / 1.12)
For 446 Euros to increase in value by 50 cents, they will need to go up by = .5 / 446 = 0.0011
So I need a gain of 11 pips?

Attempt #2)
1% of $500 is $5, so my goal is to earn $5.
The 10:1 leverage means my buying power is really $5,000
My true %1 gain is really 5 / 5000 = .0010
So I need a gain of 10 pips? (shouldn’t I need the EUR/USD value in here?)

2

Take leverage out of the equation all together, this is where you are getting confused.

The value of one pip will be dependent on the size of the position that you buy. The size of the position is dependent on your risk & your stop-loss so in order to answer your question, you’ll need to determine these factors.

Play about with the BabyPips calculators, it’ll help you shed a bit of light on things.

Analyse where you want to enter the trade, where you would place your stop-loss & outline your risk (eg. 2%) and use the Position Size Calculator. Pip Value Calculator - BabyPips.com

Then once you have grasped the concept of position sizes (very VERY important) then you could use this link to determine the value of one pip & therefore how many you need for your 1% but you may figure that out while using the Position Size Calculator.
http://www.babypips.com/tools/forex-calculators/pipvalue.php

3

Calculate your tp and sl in pips.
Risk: $/sl
Reward/gains:$/tp

So If you are risking 500 bucks and have a 50 pip sl then 500/50=$5/pip. You adjust your position size until you see $5/pip and you will lose exactly 500 bucks upon your loss

4

Dude this is simple.

For EUR/USD and all pairs with USD as the counter, $5 = 50 pips with a microlot, 5 pips with a minilot, and .5 pips with a standard lot. Done D. Crocodile Dundee.

5

Better idea. Worry about become consistent first then attach a monetary value to your trades. No many win at this game who are focused on the money.

6

500 USD with 10:1 leverage - is this forex trading for your broker??? Max volume you can enter the market is limited to 0.05 lot , where pip value is 10/20=0.5$, with spread of 1 pip, 5$ is 11 pip to go.

I use 1:1000 at Hotforex and just play with lot size to adjust risks.
Leverage doesn’t present real risks, but potential ones.

7

Why do you need to calculate that? The trading platform will tell you in each position.

8

I got something:

  • You new position must be different from bid/ask prices at least 30 pips, that’s my broker, hotforex and I think all other brokers are same.
  • 1:10 leverage looks too small, and I never see a trader use that leverage. And leverage doesn’t affect anything, the most importantance is your trading volume, of course you need higher leverage to trade larger volume.
  • just if you wanna earn $5 (1% of your capital), if you trade 0.01 volume, each different pip equal = 0.1$, 50 pips is must.

If my calculation wrong, please correct.