StopLoss

Beginner Questions
1

Hello every one, I’m having some trouble to calculate the stop loss, what I want to do is, I plan to risk maximum [B]2%[/B] of my equity.

So, in a signal like that how can I calculate the stop loss in [B]2%[/B] risk? Can anyone show me how I can do that?

[B]BUY LIMIT GBP/NZD 1.9000 / SL 1.8880 / TP 1.9500[/B]

thanks for the help.

2

1.9 - 1.8880 = 120 pips.

(Your account balance x 0.02) divided by 120 = price/pip.

So if your account balance = $6000 (for ease of calculation) x 0.02 = $120/120 = $1/pip

3

I am not sure I am following, you ask us how to calculate the stop loss and give us the stop loss level?
Do you want to calculate your position size (i.e. how many lots to trade)?

4

So you’re buying at 1.9000 & your SL would be at 1.8880 so as DayDreamer worked out for you, that’s 120-pips. And as Orpexo asked & I agree with his questioning, it would seem that it’s the position size that you are after.

What you need to is take the stop-loss in pips & go slap it in the BabyPips position size calculator, put in your figures & set your risk as 2% & it’ll give you your position size.

Try it, I’d assume that this is what you’re looking for.

http://www.babypips.com/tools/forex-calculators/positionsize.php

5

Thanks for posting just a newbie here.Helpful