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Money Management - PIP Value to calculate Amount (millions) for trade
 Post subject: Money Management - PIP Value to calculate Amount (millions) for trade Post rating: 0   New post Posted: Tue 23 Jun, 2020, 20:22 

User rating: 0
Joined: Wed 20 Mar, 2013, 16:33
Posts: 6
Location: Canada, Victoria
Hello everyone. - I hope this finds you all doing well.

Looking for some insight/direction, and suggested improvement, please.

I manage the risk taken with each trade. - This is calculated as a % of current equity:

Example scenario for illustration. (Say $50,000 USD in equity)
-If I only wish to "risk" 1% of my account equity per trade. ($500)
-If the trade risk is 50 pips.
-Then the amount to risk, per pip, equals $10.
Easily calculation for EUR/USD trade = 0.1000 Amount (millions)

Where I'm "stuck" is how to accurately calculate the Amount (millions) for a trade across other currency pairs. (As the pip value varies from currency to currency.)

Example scenario for illustration. (Same parameters as above, except using AUD/CHF pair)
-If I only wish to "risk" 1% of my account equity per trade. ($500)
-If the trade risk is 50 pips.
-Then the amount to risk, per pip, equals $10.
AUD/CHF trade = 0.0945 Amount (millions)

Any suggestions on how to achieve this? -
I apologize, the forum won't currently let me upload any supporting files. (I keep getting "server error")

Thank you in advance for your time.


 

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