Calculating lot size for JPY

Hi , currently whenever i calculate my lot sizes its work for all pairs but JPY.

So ill start off with my risk lets say as 20 pips for a gain of 60 , currency pair USD/JPY.

If my account is in GBP , i want to risk £60 for a gain of £180. So ill do £60 in yen which is 9206 yen. Ill then divide the total by the amount of pips im risking which is 20 , which equals 460 yen. 460/10 should give me my lot size which is 4.6. So is this correct ? Because for some reason when i do this im risking a heck load but when i apply this methodology to other pairs like EUR/USD , i get given a much more sensible lot size.

Eg, £60 risk = $80/20 = 4/10 = 0.4 which would be the right lot size. Could someone explain whether im correct or i need to adjust the way im making my calculations for jpy pairs. Thanks.

In very round terms - 1 lot =$10 per pip - I think that applies to yen instruments as well, so I’d say you want 3x mini lots (0.3 lots) to risk $60 on 20 pips. try entering that into your calculator. You have already decided that 0.4 lots gives you the right risk on $ instruments, so try 0.4 on the yen one and see if that comes up with a right sounding risk in Pounds.

Thanks for the response, ill give that a go. I just want to be accurate as possible. Like with other pairs I know for 100% certain im gonna lose x amount where with jpy its hit and miss. If there isnt a concrete solution I think ill just go into a demo account and toy around with it until i find which lot size for that pair roughly gives me the best accuracy.

It doesn’t.

This might help, though: What is a Pip in Forex? - BabyPips.com

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“…So, when trading 10,000 units of GBP/JPY, each pip change in value is worth approximately 0.813 GBP…”

So 1 lot /pip = £8.31

That is as near as dammit $10 per lot/ pip I think :relaxed:

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About $11, yes, because of what the Yen exchange-rate happens to be at the moment.

Fair enough. :slight_smile:

(My point was that there’s a way to work it out, that applies to all currency pairs, regardless of current rates/value, so I thought the link might help the OP.)

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