If you wish to size so that your risk equals 100$ and you know that pip value is 4 cents and stop is 100 pips then
100$ for 100 pips means 1$ for 1 pip(100 pips at 1$ = 100$ risk).
4 cent per pip per lot means 25 lots for 1$ for 1 pip.
So 25 lots at 100 pips make for 100$ risk.
But I am not sure that's what's meant since there is no %.
Maybe you meant 100$ is your account?
What % of risk do you want?
This is how fixed % goes:
Say you have 100$.
You want to use 1% fixed risk.
1% of 100$ is 1$. If your lot size is 4 cent per pip then you can not use more than 25 pips stop, as 25 pips at 4 cents(1 lot) are 1$ = 1% risk already.
You always go(random example):
Account size x % risk = total amount to risk.
(1000$ x 1% = 10$)
then
total amount to risk / stop size in pips
10$ / 50 pips = 20 cent/pip
then
how many lots are needed to get 20 cent/pip?
20 cent / pip / lot size => 20 cent/pip with 4 cent/pip per lot => 5 lots
100$ for 100 pips means 1$ for 1 pip(100 pips at 1$ = 100$ risk).
4 cent per pip per lot means 25 lots for 1$ for 1 pip.
So 25 lots at 100 pips make for 100$ risk.
But I am not sure that's what's meant since there is no %.
Maybe you meant 100$ is your account?
What % of risk do you want?
This is how fixed % goes:
Say you have 100$.
You want to use 1% fixed risk.
1% of 100$ is 1$. If your lot size is 4 cent per pip then you can not use more than 25 pips stop, as 25 pips at 4 cents(1 lot) are 1$ = 1% risk already.
You always go(random example):
Account size x % risk = total amount to risk.
(1000$ x 1% = 10$)
then
total amount to risk / stop size in pips
10$ / 50 pips = 20 cent/pip
then
how many lots are needed to get 20 cent/pip?
20 cent / pip / lot size => 20 cent/pip with 4 cent/pip per lot => 5 lots
JungleLion Thank you,
[To, amarnath:
Why didn't the 'Real Trader' answer my question? If you don't want to help others, don't backbite - it's of no use.
And yes, I have a perception from your posts: You think that Only you know something about Fx trading and it's great to see others in dark isn't it?
Let me tell you - It pinches a bit to share your knowledge BUT by sharing your knowledge, you are NOT diminishing your success because the market is open to all, everyone can have their share of profit. Heard of that guy - some Warren?? Can anyone copy his style and become successful like him? Do you think that he did not reveal his strategy?? He did reveal it BUT none cud compete him BECAUSE trading depends 98% on yourself and your personality defines how successful you wud be in trading venture. So, don't keep knowledge in ur belly and laugh at others thinking tat they are in dark - darkness comes to an end with some quality work and knowledge in belly ends in grave ] Happy Trading
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