I am trying to calculate my max risk on 2 pairs.
I plan on opening a $2500 USD account.
I plan on trading with a max risk of 3% per trade.
Trading mini lots on EUR/USD and GBP/USD.
I need help calculating how many pips i can risk at 3% depending on 1:50 leverage, and trading mini lots, as well as how many lots i can trade.
This math is confusing!
Leverage does not enter into the calculation.
You asked how many pips you can risk, and how many lots you can trade. You need to specify one of those things, and then you can calculate the other.
For example, if you specify the number of pips you are willing to risk, then the general formula for Position Size would be:
[B]Number of Lots = (Account Balance, in dollars) x (Risk %) / (Stop Loss, in pips) x (Pip Value, in dollars)[/B]
And here is a previous post which explains how to use this formula — 301 Moved Permanently
Awesome, that’s what i was looking for, Thank Clint.