Stop loss calculations help

umarfxtrader · May 6, 2021

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.

rb7 · May 6, 2021

With all due respect you, I would say do not trade if you don't know this basic concept.

umarfxtrader · May 6, 2021

I didn't ask for your opinion are you able to answer the question?

umarfxtrader · May 6, 2021

I'm learning and would like to know the answer of this hypothetical scenario.

easymon1 · May 6, 2021

umarfxtrader said:
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.

How much $ is a pip worth?

SunTrader · May 6, 2021

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

BKR88 · May 6, 2021

umarfxtrader said:
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.

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

the_gem · May 6, 2021

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

easymon1 · May 6, 2021

umarfxtrader said:
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.

This might come in handy...
Forex Position Size Calculator
https://elitetrader.com/et/threads/...ost-welcome-online.355764/page-3#post-5344398

JSOP · May 7, 2021

umarfxtrader said:
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.

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.