How to calculate the volume base on stop loss price and loss amount?
How to calculate the volume base on stop loss price and loss amount?
07 Jan 2021, 15:53
I am the newer for cTrader, I want to use a fixed amount for the stop loss(e,g $50), and set the stop loss to the fixed price position,
for example as below with EURUSD:
the entry price is 1.22717, I want to open a sell order, and I set the stop loss in 1.22799, and the max loss amount is $50.84, so how can I calculate the volumes?
Replies
winsonet
10 Jan 2021, 12:05
RE:
firemyst said:
Well, you know how the $50.84 is calculated:
.0001 (pip size) * 8.2 pips (the SL) * 62000 (volume) == $50.84.
So reverse things:
.0001 * ((opening price - closing price) / pipsize) * x == $50.84.
Solve for x, which is the volume you seek.
:-)
Oh, thanks for your help!
@winsonet
firemyst
10 Jan 2021, 12:00
Well, you know how the $50.84 is calculated:
.0001 (pip size) * 8.2 pips (the SL) * 62000 (volume) == $50.84.
So reverse things:
.0001 * ((opening price - closing price) / pipsize) * x == $50.84.
Solve for x, which is the volume you seek.
:-)
@firemyst