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How to Calculate Lot Size to trade 1% Risk

340 ratings | 47511 views
Learn how to manually calculate what lot size you need to trade to lose no more than x% of your trading account. Covers how to do simple calcs when your account currency matches currency pair traded vs how to use pip calcs on pairs not matching account currency.
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Text Comments (63)
Aces (1 month ago)
Howd you get the 60 pips?
clive nkosi (1 month ago)
My question is How did you arrive to the 60 pips Stop Loss? Please clarify!
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Maaifoedie De La Rey (4 months ago)
Clearly from the way you entered the 60 pip value as 600 points for both trades in your example, it indicates equating 10 points per pip. However, I'm not completely clear as to why this would equally apply to a currency pair with USD as second currency (GBP/USD), as well as a currency pair without USD (NZD/JPY), since the PIP values differ. Could the reason therefore have nothing to do with respective PIP values, but simply because the prices are denominated in five digits instead of usual four for the GPD/USD, and three digits instead of usual two for the NZD/JPY - hence add an extra zero to the pip value to equate for the extra decimal ?
Maaifoedie De La Rey (4 months ago)
Thank you for the fast and clear reply Donna, I get it now ! Subscribed.
Donna Forex (4 months ago)
No, it doesn't work like that. If your account is in USD, then you are exchanging 100,000 USD of currency for something else. Therefore, any currency you trade with /USD as the second pair will always have a value of $10 per pip. If your account is in GBP then the same applies for all currency pairs ending in /GBP... 1 lot of anything that ends in GBP will always equal £10 per pip. Yes, there are 10 points per pip. It doesn't matter how many decimal places there are.
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Mandera A (4 months ago)
Thanks you Donna
LunX [oZ] music (5 months ago)
thnks ..great video
Hayden Harris (5 months ago)
If you bet in the correct direction you win and if you bet in the wrong direction you loose which is logical.
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NoMore9to5Work (6 months ago)
stop lying
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Meinson Babu (7 months ago)
Go slowly in next video please... it’s great explanation though ... would you explain more about stop losses only please
moally55 (7 months ago)
Niiic 1 scouser!!!
David Stojadinovic (7 months ago)
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Lorenzo Luiz De Souza (11 months ago)
Thanks for helping out. But no offense, your risk and reward ratio is quite scary.
Aces (1 month ago)
That’s what I thought. I’d do 0.40 on the $500 ..
Lūmi Zainabu (4 months ago)
Donna Forex do you have any videos on how to calculate/manage risk reward rates? I'm learning to trade and this would be helpful.
Donna Forex (4 months ago)
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tomal tee (1 year ago)
TRANSPOSE: % = lot * number of pips * 1 pip value / capital => lot = capital * % / number of pips * 1 pip value LET: capital = $5000 % = 0.01 1pip value = $10 number of pips = 200 => lot = 5000 * 0.01 / 200 * 10 => lot = 50 /2000 => lot = 0.025 or ($100,000.00 * 0.025 = $2500) EXAMPLE GBPUSD = 1.35830 pip value = 0.0001/1.35830 = 7.36214 * 10^-5 pip to pound = 7.36214 * 10^-5 * $2500 => pip to pound = £0.18 TEST FORMULA TO ENSURE 1% = $50: £0.18 * 200 pips = £36.81 or $50 (perfect) Time:12.41 GMT Date:16.09.17
Jules Bar (1 year ago)
is point and pips the same? Coz in my Mt5 my stop loss and target are in points?
:(
Jules Bar (1 year ago)
Do u trade? Do u use bot trading software?
The real luminous one (1 year ago)
could you just buy one pip?
Donna Forex (1 year ago)
You can enter and exit trades at 1 pip with a lot of brokers, yes, but a lot of them may not allow you to enter these values into your stoploss and take profit and will require you to place orders further away (but with most decent brokers you can still close the trade at 1 pip, you just need to do it manually or using autotrade software added on).
khaled _ (1 year ago)
Thanks Ygritte. Very informative.
Jose Valles (1 year ago)
first of all 1% of $ 500 is $5 ...so its your $5 of risk divided by your 60 pips of stoploss is 83 cents..so that means your position size should be 83 cents per pip ...not $8.33......
jojocool555 (9 months ago)
idiot !
Donna Forex (1 year ago)
The risk is actually correct... the account size is $50,000 (see bottom left on my screen) and 1% of $50k = $500
emil Kamil. (1 year ago)
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Pete de pad (1 year ago)
Very easy.. why don't you take a stop loss at 135 pips, and a 10.000 USD account. With a position on the GBP/NZD.. That would really teach us something..
Reptilian Freemason (1 year ago)
Can anyone explain why if the stop loss was 60 pips , then why was 600 entered?
Christina B (2 months ago)
Because the last zero is what they call a pipette and to calculate pips you always remove the pipette in her case she added the zero to trade because the trading platform always has an extra number at the end to calculate the pips.
denzelwings (1 year ago)
eliel karym thanks man! I have the same question too
eliel karym (1 year ago)
600 points=60 pips
Kim Andrews (1 year ago)
Great post, thank you. Simply and clearly explained. I am using your calculator from now on.
Anthony Gitonga (1 year ago)
Hey, thank you Donna for this informative video. Does it work same in a ctrader account?
Donna Forex (1 year ago)
It should work similar across most Forex accounts, just watch out for whether your broker adds an extra 0 to all the pip values (if they do, then 60 pips = 600 points for calculation purposes), or if they use true pip values (i.e. 60 pips = 60 pips). You can ask your broker this or just look at a demo account and place some trades and see what the result is.
iTzKhaYeR (1 year ago)
you removed calculator from your website
theluggage (3 months ago)
https://www.earnforex.com/position-size-calculator/
Kim Andrews (1 year ago)
Really? That's what I was looking for. Please return it Donna.
Jason Raffoul (1 year ago)
Thank you for the information , very helpful .
Rakan N (1 year ago)
thats very conservative
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Ciccio Ciccio (1 year ago)
why or how  you choose 60Pips SL?
Jake Dryberg (1 year ago)
she alluded to it... some trade off a fixed SL amount such as in the vid example and they are happy to exit if the trade goes against them hitting their SL. Others may position the SL just below the previous low of the signal candle (if long). You could move your SL to a break even point if your trade takes off to avoid any losses at all. But this dynamic method requires more screen time rather than just 'set it and forget it' trading
aprokhs2002 (2 years ago)
great video., very informative for me 😊
Evan Deckard (1 month ago)
Many thanks, I been tryin to find out about "forex mini lot size" for a while now, and I think this has helped. You ever tried - Menabeth Pips Parapraxis - (do a google search ) ? Ive heard some great things about it and my mate got cool success with it.
Maria Portugall (1 month ago)
+aprokhs2002 This was great, I been tryin to find out about "more pips in forex trading" for a while now, and I think this has helped. You ever tried - Menabeth Pips Parapraxis - (just google it ) ? Ive heard some incredible things about it and my friend got great success with it.
Ramon Vasquez (1 month ago)
This is just superb, I been tryin to find out about "best pips forex" for a while now, and I think this has helped. Have you heard people talk about - Menabeth Pips Parapraxis - (do a search on google ) ? Ive heard some extraordinary things about it and my buddy got great success with it.
SerbSimulator (4 months ago)
This is just superb, been searching for "how to get more pips in forex trading" for a while now, and I think this has helped. Ever heard of - Menabeth Pips Parapraxis - (do a google search ) ? Ive heard some awesome things about it and my mate got great success with it.

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