Simple risk management tool, that calculates required lot size according to amount of money trader affords to lose and stop-loss in points.
INPUTS
- Risk-Money: money to sacrifice.
- Stop-Loss Points: stop-loss in points.
EXAMPLE
- AUDJPY Sell OrderΒ
- Risk-Money:Β 1000 USD
- Open Price: 73.706
- Stop-Loss: 76.130
- Stop-Loss Points:Β 76.130 – 73.706 = 2.424 (2424 points)
- Lots: 0.45
- You lose 1000 USD, if you hit stop-loss with 0.45 lots position.