I need to know how to calculate my stop loss and take profit in pips to price. example Eur/Usd long entry point is 1.25522 stop loss = 30 pips take profit = 80 pips Short entry 1.24582 stop loss = 30 take profit = 80. I’m confused on how to calculate the stop loss and take profit prices. I am hoping there is a calculator that can do this for me. thanks for any help
I’m not 100% sure that this is what you’re needing but it sounds like it. Give it a try (can do percentage you are willing to risk or an amount).
Thanks baz1982 that calculator will be helpful but not what I’m looking for right now. what I need is a calculator that simply adds or subtracts pips from a market price so I can set my stop loss and take profits.
Hi, Arkanan
These are easy calculations, once you understand where the “pips” are in a quoted price.
In your first post, you described two trades, one long and one short. Let’s look at them separately.
[B]Your long trade:[/B]
Your entry price is 1.25522. There are five digits after the decimal point, which tells you that the last digit represents
0.2 pips, the next-to-last digit represents 2 pips, the digit before that represents 50 pips, etc.
If you keep moving all the way to the left, you will find that the price 1.25522 = 12,552.2 pips.
Once you know this, it’s easy to add or subtract pips to (or from) the price. For your long trade, your SL obviously will be BELOW your entry price, and your TP will obviously be ABOVE your entry price.
So, your SL will be 12,552.2 - 30 = 12,522.2, which corresponds to a price of [B]1.25222 for your SL.[/B]
And your TP will be 12,552.2 + 80 = 12,632.2, which corresponds to a price of [B]1.26322 for your TP.[/B]
[B]Your short trade:[/B]
For your short trade, your SL obviously will be ABOVE your entry price, and your TP will obviously be BELOW your entry price.
So, your SL will be 12,458.2 + 30 = 12,488.2, which corresponds to a price of [B]1.24882 for your SL.[/B]
And your TP will be 12,458.2 - 80 = 12,378.2, which corresponds to a price of [B]1.23782 for your TP.[/B]
With practice, you will learn to focus on just the last 5 digits of the price. In other words, in the case of your long trade, your entry price is 1.25522, [B]but you focus on it this way: 2552.2,[/B] which makes it pretty easy to add or subtract pips in your head, or on your pocket calculator.
So, using this method, the SL for your long trade would be 2552.2 - 30 = 2522.2, which means that the price of your SL will be 1.25222 (the same price that we calculated above).
This is very easy.For most of the currency pairs like EUR/USD,GBP/USD and AUD/USD ignore the first two digits of the price and the last one ( if there are five digits after the decimal,if there are four don’t ignore the last one) and add or subtract the required pips to determine your stop loss and take profit levels.
For example when you are long at 1.2552 ignore 1 and 2 so u get 552,
Now stop loss=552-30=522 or 1.2522
Take profit=552+80=632 or 1.2632.
Remember if u get sum>1000 don’t forget to add one in the first digit of the price after the decimal.
For example if u are long at 1.2966 and take profit is 80 pips,
Take profit=966+80=1046 which is greater than 1000,so add 1 in the 1st digit of the price after decimal 2+1=3.
Now take profit level is 1.3046 not 1.2046 because we have added 1 in the first digit after the decimal.Use your common sense how can the take profit be less than the buying price when you are long at the currency.It must be greater than the buying price which is 1.3046 not 1.2046.
Phew!Hope it helps.
Very good explanation JJ684… keep it on.
I am sure that this explanation have many newbies a lot about how to set stop loss and take profit. great work
Well thanks Peter i thought my answer is complicated but Thank God it helped! 