My question is, at the end of the Formula, I am left with being able to trade 9.8 Micro-Lots, and rounded down to 9 micro-Lots. QUESTION, does that mean that each Pip that goes in my favor or against me will be worth .90 cents ??? USD/CAD example, you said USD/CAD = 1.4718 (I’m sure you know that the actual price of the USD/CAD is closer to parity — but, let’s use your number for this example.)

If the USD/CAD is 1.4718, then the formula for finding the pip-value of the USD/CAD (in U.S. dollars) is:

For nano lots: 1 pip = $0.01 / 1.4718 = $0.00679

For micro lots: 1 pip = $0.10 / 1.4718 = $0.0679

For mini lots: 1 pip = $1.00 / 1.4718 = $0.679

For standard lots: 1 pip = $10.00 / 1.4718 = $6.79

In each case, the pip-value is X / the price of the USD/CAD, where X is a penny, a dime, a dollar, or ten dollars, depending on the size lot you are going to trade.

Once you have entered your lot size into the formula in this way, the formula will give you the result in terms of that lot size.

So, in the case of your micro account, the correct pip-value is 6.8 cents.

Using your 2% risk and 30-pip stop-loss (from your previous example) the formula would work out this way:

Position Size, in micro-lots = [(Account Balance, in $) x (Risk %)] / [(Stop Loss, in pips) x (Pip Value, in $ per micro-lot)]

= [1000 x 0.02] / [30 x 0.068]

= 20 / 2.04

= 9.8 micro-lots

(which you would have to round down to 9 micro-lots in order to stay strictly within your 2% risk parameter)