Calculation of pip nd stop loss

I am unable to understand the calculation required to set my stop loss or take profit. I have a 500 dolar account and would want to risk only 2% of my account. How do I calculate the pip values

Hi.
Have you been to the free school here? Well worth a visit before you start trading.
Anyhow, onto your question.

If you’re trading a usd nominated currency with $500, and you intend trading 0.01 size lots (a micro lot), every pip movement will gain/lose you 10 cents.
So, risking a max 2% of your $500 equates to $10.
Subtract the cost of trading, lets say 2 pips for arguments sake, that’s 20 cents gone, leaving $9.80.
At 10 cents a pip, you could lose 98 pips.

This is fairly basic, you may also wish to take into account recent support/resistance levels before placing your stops, but hopefully you’ve got the idea

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Your take profit level is more difficult. Only you know how far you think your trade can go, or how long you want to be in the trade.
As a very basic rule of thumb, you should be looking for at least the same number of pips gain as you were prepared to lose (your Risk:Reward ratio), but if the trade goes well you can always move the take profit further as it progresses

Try this Forex Money Management

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You may also wish to set your TP (take profit) at a 1:2 risk reward. That way you can actually be wrong more than 50% of the time and still grow your account.

Your stop loss is placed wherever you think it’s safe to place it, that’s the first step

but, you also need to consider CAN YOU AFFORD THAT RISK if it gets hit, hence you need to calculate the distance in pips and work out if you can afford that stop loss

so let’s try that
you have an Account Balance of $500
you want to risk 2%

so 0.02 x 500 = $10 as @eddieb has already explained
Now, you really do need to work out the cost of doing business, hence your Nominal Margin before you take out the 2%, but let me continue to keep it simple

so You’re consenting to losing $10 if need be… ok

now GET THIS IN YOUR HEAD LOUD AND CLEAR
$10 is all you have for that trade
Whether the Stop Loss is at 1 Pip or 1,000 Pips, you only have $10 to play with

so Logically, You divide the $10 by the amount of pips YOU HAVE CHOSEN TO PUT YOUR STOP LOSS AT

so if it’s 10 Pips you are risking $1 per pip… obviously
if it’s 100 pips, you are risking 10 cents per pip

now. to place the trade you need to convert $$ to lot sizes

$1 per pip is 0.10 Lots
10 cents per pips is 0.01 Lots

so basically pip value is
How much you want to risk
divided by Pip distance as defined by you

does that help

Mate I understand you pain, because it takes a lot of time for me to understand the calculation of pips and stop loss. But Babypips school helps me to understand the basic. You must go school of trading first. Stop loss is totally connected with the volume of investment and the size of lot with its movement. This basic can be tried by support and resistance level. But all these things need a lot of practice.