Work out the right lot size before you trade, what each pip is worth, and how much a losing streak costs. Prices for conversions come from the latest daily closes.
How big a trade risks exactly what you choose.
What one pip is worth in your account currency.
Is the trade worth taking?
How much of your balance the broker holds for the trade.
What a losing streak does to your account.
The deeper the loss, the harder the way back.
| Account down | Gain needed to recover |
|---|
Decide how much of your account you'll risk (for example 1%), measure how far your stop loss is from your entry in dollars, and divide. The lot size calculator above does it for you and rounds to what your broker allows.
On a standard lot (100,000 units) of EURUSD, one pip (0.0001) is worth about $10; on a mini lot $1 and on a micro lot $0.10. For pairs not quoted in US dollars the value changes with the exchange rate, which the pip value calculator works out.
Margin is the trade size divided by your leverage. A 1-lot EURUSD trade (about $117,000) at 1:100 leverage needs roughly $1,170. Use the margin calculator with your own leverage and price.