Hey guys new forum member here with a few questions that I cannot seem to find the answers to. I’ll use a trade I just won today on my demo account to hopefully paint a better picture. I took a sell position of .01 on the EURGBP at .73360 with a S/L at .73650 and T/P at .72700. So an approximate stop loss of 30 pips and take profit 60 for an (approximate ) 2:1. I have 1800USD in my account with all leverage removed it’s 1:1. My profit was $10.18 but the swap was .09 so it was really $10.09. Because I have no leverage, am I only able to trade the 1 micro lot? but if I had 2000 in my account could I trade 2 micro lots? 3000 for 3 micro lots and so on? Say right now with my 1800 and no leverage if I wanted to risk 100 dollars with a reward of 200 with the same 30 pip stop and 60 pip take profit how would I do that? Is that possible or this where leverage comes into play? I’ve been searching high and low for these answers but with no luck. Any help is greatly appreciated and thanks in advance! 
Hi Carbonhart,
Welcome to BabyPips! 
You said you want to risk $100 with a 30 pip stop (with a reward of $200 on a 60 pip take profit). That means you want to risk about $3.33 per pip.
First, it’s important to note that the value of a pip (AKA the Pip Cost) is determined by the second currency in the pair you are trading (AKA the Counter Currency). In the case, of EUR/GBP, the counter currency is GBP.
Below is a screenshot of the Advanced Dealing Rates window on the Trading Station platform. As you can see, the Pip Cost for EUR/GBP on a 1 micro lot trade is $0.15 or 15 cents.
Since you want to risk $3.33 per pip, you must divide $3.33 by 15 cents which equals about 22. That means you need to trade 22 micro lots to risk $3.33 per pip.
Your understanding of the amount money you need to trade micro lots without leverage (or more precisely with 1 to 1 leverage) is correct. That means, in order to trade 22 micro lots with 1:1 leverage, you must have $22,000 in your trading account.
If you want to trade with the amount you currently have in your account instead, then you must lower your trade size accordingly. With 1 micro lot, you can risk about $4.50, and seek a reward of about $9.
Here’s another discussion about getting the most out of your demo trading that you may find useful: 301 Moved Permanently
This position size calculator (indi) at earnforex.com is the handiest tool I’ve seen for risk management
Position Size Calculator for MetaTrader
Puts an entry, SL and TP line on the chart, you move them around (and input your maximum risk in either % or $) and it will size the position for you.
Wow! Nice answers! Thanks for the info!
No probs. Do verify the numbers from the indi with the lot size calculator on babypips or something similar.
Thanks Jason that was very helpful and exactly the answer I was looking for