Pips, lots and sizing a forex trade
Size a forex trade from a dollar risk and a stop measured in pips.
Module 8 of 26, Currencies, interest, and things that move together. Lesson 5 of 6, about 16 minutes.
The takeaway
Size your forex position from what you can afford to lose and the stop distance, not from how much you have to spend.
This page is a public summary. The full lesson has the worked examples, an interactive exercise and a short quiz, and sits in the course. Lessons 1 and 2 of Module 1 are free and the rest need a pass.
Open this lesson in the course
General information only. It doesn't consider your objectives, finances or needs. Tickfloor holds no financial services licence and never places trades.
Concepts in this lesson
Previous lesson
Next lesson
Related lessons
- Stop losses and take profits
- Sizing a trade by how much you can lose
- Average result per trade, and Kelly sizing
- Fixed-fraction sizing, fixed-dollar sizing and the risk of ruin