# How do I calculate risk?

516

If I use a leverage of 500, in how many cross hair pips will a lot of 0.04 stop out, assuming a POINT of 0.00001 on a balance of 200 USD?
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8466

macpee:
If I use a leverage of 500, in how many cross hair pips will a lot of 0.04 stop out, assuming a POINT of 0.00001 on a balance of 200 USD?

There are lot size / lot risk calculators, available in the Market for that kind of thing.

9752

macpee:
If I use a leverage of 500, in how many cross hair pips will a lot of 0.04 stop out, assuming a POINT of 0.00001 on a balance of 200 USD?

That acctualy depends from few variables but in short most important is :

a) your broker margin call level

b) pip value

c) lot size

So just for this calculation purpose lets assume that you get margincall when your equity reach 10% of balance.

This means that equity amount that you can use is 180 usd.

Now all you need to do is divide your equity by number of pips / value.

To simplify lets assume that you trade EURUSD and your base currency is USD so 1 pip has a value of 10\$ with 1 full lot size.

You wrote that you trade 0.04 lots, so your 1 pip will have a value of 0.4\$. This means that to get stop out you will need 450 pips move.

(180 usd avaliable equity / 0.4\$ pip value per lot = 450 pips). I made this calculation using PIP value so 0.0001, if you want to

calcualte this using tick which is 0.00001 then just add one 0 at the end. (you will have 4500 ticks which is 450 pips)