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| Money Management - PIP Value to calculate Amount (millions) for trade http://www.dukascopy.com/swiss/english/forex/jforex/forum/viewtopic.php?f=146&t=57376 |
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| Author: | OliverJervis [ Tue 23 Jun, 2020, 20:22 ] |
| Post subject: | Money Management - PIP Value to calculate Amount (millions) for trade |
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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