Stop loss calculations help

Discussion in 'Trading' started by umarfxtrader, May 6, 2021.

  1. Lets say I’m trading with 100k in my trading account.

    I only want to place a buy order using 50% of my equity which would be 50k. I’m using 1:400 leverage on a fixed trading account.

    I want to know how to calculate how many pips I would need to go down if making a buy/sell order until to get margin called. I want to know how to calculate the value per pip so I can set my stop loss so I will only loose 50k not my full account of 100k.



    In short I want to know how to calculate my stop loss so I won’t loose more than 50k of my 100k In my account.
     
  2. rb7

    rb7

    With all due respect you, I would say do not trade if you don't know this basic concept.
     
    hussaing and ffs1001 like this.
  3. I didn't ask for your opinion are you able to answer the question?
     
  4. I'm learning and would like to know the answer of this hypothetical scenario.
     
  5. easymon1

    easymon1

    How much $ is a pip worth?
     
  6. SunTrader

    SunTrader

    No, actually you are not learning. You are dreaming. Markets looooove dreamers.
     
  7. BKR88

    BKR88

    1 lot = $100,000 (average for many pairs)
    1 pip move with 1 lot = $10 (average for many pairs)

    Max purchase ($100,00 account) at 400:1 = $40,000,000.
    $40,000,000 x 50% = $20,000,000 / 100,000 = 200 lots
    200 lots x $10/pip = $2,000 per pip
    $50,000 / $2,000 = 25 pip SL

    ***Obviously you don't want to trade a position size this large but you didn't specify other than "50%". You can trade with leverage from 0-400.

    ***Example: Buy 10 lots x $10 per pip = $100 per pip.... $50,000 / $100 = 500 pip SL (see example below)

    ***Use smaller position size for larger SL before hitting your max loss.

    ***Your profile shows Salt Lake City, UT so max leverage in U.S. is 50:1

    eu.d1.png
     
    Last edited: May 6, 2021
    Onra and easymon1 like this.
  8. the_gem

    the_gem

    Unless its a very high volume stock that doesnt have a lot of volatility, you will always get stopped out.
     
  9. easymon1

    easymon1

    BKR88 likes this.
  10. JSOP

    JSOP

    What's your broker's margin-call policy? If your broker's margin-call policy kicks in before you lose 50% of the account, just let yourself get margin-called.
     
    #10     May 7, 2021
    Onra likes this.