Calculate position size to open given Stop Loss and % of capital to risk
An answer to the question below for Forex market ;
I want to open position and am willing to risk at most some percent of my capital if things go wrong. I (scientifically ?!) calculated my stop loss distance to be some pips away from my (buying/selling) price.
Given all of the above what is the maximum size I should open position with ?
* Pip value for calculated size is displayed along with quote used to calculate position size.
Note : If you know the exact amount to risk and want to do calculation using that amount (instead of % of total capital), then entering that amount as "trading capital" and entering 100 as "max percentage to risk" will do the trick. Thanks to Phil Casey for pointer.
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