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Risk Management together with Leverage and Lot size

MarvinKops
Aug 12 2020 at 20:34
2 príspevkov
How to effectively calculate Risk and Reward. formula to use as well as tips to make it easy to understand.

Dorigda
Aug 14 2020 at 08:33
83 príspevkov
It is necessary to work out and calculate very carefully, and preferably several times.

GeorgeBischof
Aug 28 2020 at 16:48
318 príspevkov
It is very much needed to make a proper plan to minimize the risks and try to make profit from this market. When you are going to make a strategy, you should keep in mind about the market situation.

MarvinKops
Aug 30 2020 at 21:04
2 príspevkov
I need some help, indeed.

understand that each trade consist namely of,
SL; R:R; and proper lot sizing, however I get confused with the part of margin & Leverage.

Using a local broker called Globex360 (SouthAfrica) and using a 1:100 account

I jusst need to understand how to do the calculations and which figures to use where.

Haven't even looked at any tools apart from support and resistance maybe some wick readings on various timeframes, still learning truly am enjoying it but need to understand it all abit better.



EllisParker
Aug 31 2020 at 07:27
34 príspevkov
Dorigda posted:
It is necessary to work out and calculate very carefully, and preferably several times.


Can't agree more with you.

CirillaCosta
Aug 31 2020 at 10:58
34 príspevkov
If you want to make a good career in this market, you have to make a proper strategy. You need to know how to manage the risks. a proper plan can make you rich in this risky platform.

Keaton Richards (keatonrichard)
Sep 07 2020 at 06:11
30 príspevkov
Well, I don’t think that you need to do that manually because most brokers have calculators on their online platforms offering you to calculate risk and reward.

Stonesong
Sep 18 2020 at 07:26
128 príspevkov
Failure to manage your risks and capital will lead you to rash mistakes and loss.

vontogr (togr)
Sep 18 2020 at 08:54
4862 príspevkov
MarvinKops posted:
How to effectively calculate Risk and Reward. formula to use as well as tips to make it easy to understand.


It is quite easy. Lets say you want to risk 1% per each trade.
So you need to calculate value of 1 pip and set your TP and SL accordingly. P.S. if there is a gap over weekend your SL,TP wont be executed.
So the calculation. My favourite pair EUR USD. Account balance $100,000. 1% is $1,000.
The simplest example:
Buy 1 lot of eur usd at the rate 1.18000.
It does actually mean you spent $118,000 USD to buy 100,000 EUR.
So if the rate move to 1.19000 then value of position is $119,000 USD. You made $1,000 profit (minus spread, commison and sllipage)
So if the rate move to 1.17000 then value of position is $117,000 USD. You made $1,000 loss (plus spread, commison and sllipage)
So your SL and TP are 1.17000 and 1.19000 = 1,000 pips (pipetes actually)

Wanna more examples?

EbonyJones
Sep 21 2020 at 19:42
232 príspevkov
If you want to become successful in this market you need to deal properly with the risks. Proper risk management can ensure you a good amount of profit.

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