This calculator is provided for educational purposes only and does not constitute financial advice. Always verify results with your broker before placing trades.
Risk/Reward Calculator
Evaluate the risk-to-reward ratio of any trade setup. Visualise your potential profit versus risk before pulling the trigger.
Coming Soon
The Risk/Reward Calculator is currently in development and will be available in a future update.
Try the Position Size Calculator InsteadThe risk/reward calculator helps you assess whether a trade setup is worth taking based on your entry, stop loss, and take profit levels. Coming soon.
Frequently Asked Questions
A standard lot is 100,000 units of the base currency. For EUR/USD, one standard lot equals 100,000 euros. Standard lots have a pip value of approximately $10 for USD-quoted pairs.
The formula is: Lot Size = (Account Balance × Risk%) / (Stop Loss in Pips × Pip Value). For EUR/USD with a $10,000 account, 1% risk, 20-pip stop: ($10,000 × 0.01) / (20 × $10) = 0.50 lots.
Most professional traders risk between 0.5% and 2% per trade. Risking more than 3% per trade is generally considered high risk and can lead to rapid account drawdown during losing streaks.
For Gold and other instruments where USD is the quote currency, the pip value is fixed ($10 per pip per standard lot at our definitions). However, for instruments where you need price conversion — like USD/JPY — the entry price is needed to calculate the exact pip value in your account currency.
For Gold in this calculator, we define 1 pip as $0.10 (10 cents). A standard lot of Gold is 100 troy ounces, giving a pip value of $10 per pip per standard lot (100 oz × $0.10 = $10).
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