1. INPUT
PE = Capital($) = 1000
RP = Risk (%) = 2 %
EP = Entry Price = 1719.78
XP = Exit Price = 1733.75
2. OUTPUT (Goal)
PS = Position Size = ?
LEV = Leverage = ?
IM = Initial Margin = ?
3. CALCULATION
RD = Risk ($) = 1000 * (0.02) = 20
SLD = |EP - XP| = |1719.78 - 1733.75| = 13.97
SLP = Stop Loss (%) = (SLD / EP) = (13.97 / 1719.78) = 0.0081
PS = Position Size ($) = RD / SLP = 20 / 0.0081 = 2469.13
CPV = Current Price Value = EP = 1719.78
QNT = Quantity = PS / CPV = 2469.13 / 1719.78 = Roundup(1.435) = 2
4. Assumption and Final Calculation
LEV = {3, 5, 10, 20}
IM = PS / LEV = 2469.13 / {3, 5, 10, 20} = {823.04, 493.826, 246.913, 123.4565}
PE = Capital($) = 1000
RP = Risk (%) = 2 %
EP = Entry Price = 1719.78
XP = Exit Price = 1733.75
2. OUTPUT (Goal)
PS = Position Size = ?
LEV = Leverage = ?
IM = Initial Margin = ?
3. CALCULATION
RD = Risk ($) = 1000 * (0.02) = 20
SLD = |EP - XP| = |1719.78 - 1733.75| = 13.97
SLP = Stop Loss (%) = (SLD / EP) = (13.97 / 1719.78) = 0.0081
PS = Position Size ($) = RD / SLP = 20 / 0.0081 = 2469.13
CPV = Current Price Value = EP = 1719.78
QNT = Quantity = PS / CPV = 2469.13 / 1719.78 = Roundup(1.435) = 2
4. Assumption and Final Calculation
LEV = {3, 5, 10, 20}
IM = PS / LEV = 2469.13 / {3, 5, 10, 20} = {823.04, 493.826, 246.913, 123.4565}
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.