Stop Loss And Take Profit Calculator Forex

Forex Risk Management:

\[ \text{Position Size} = \frac{\text{Account Risk}}{\text{Stop Loss in Pips} \times \text{Pip Value}} \]

Entry Price:

price

Stop Loss (SL):

price

Take Profit (TP):

price

Lot Size:

lots

Stop Loss in Pips:

Take Profit in Pips:

Risk-Reward Ratio:

Potential Loss:

Potential Profit:

Unit Converter ▲

Unit Converter ▼

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1. What is Stop Loss and Take Profit?

Stop Loss (SL) and Take Profit (TP) are essential risk management tools in forex trading. A stop loss automatically closes a trade at a predetermined price to limit losses, while a take profit locks in profits by closing the trade when it reaches a favorable price level.

2. How Does the Calculator Work?

The calculator uses these formulas:

\[ \text{SL in Pips} = |\text{Entry Price} - \text{Stop Loss Price}| \times 10000 \] \[ \text{TP in Pips} = |\text{Entry Price} - \text{Take Profit Price}| \times 10000 \] \[ \text{Risk-Reward} = \frac{\text{TP Pips}}{\text{SL Pips}} \]

Where:

Entry Price — Your trade opening price
Stop Loss Price — Price where trade will close to limit losses
Take Profit Price — Price where trade will close to secure profits
10000 — Multiplier for standard forex pairs (100 for JPY pairs)

3. Importance of Risk Management

Details: Proper SL and TP placement helps traders maintain discipline, protect capital, and achieve consistent results by managing risk before entering trades.

4. Using the Calculator

Tips: Enter your entry price, desired stop loss and take profit levels, and lot size. The calculator will show the risk parameters in pips and currency terms.

5. Frequently Asked Questions (FAQ)

Q1: What's a good risk-reward ratio?
A: Most professional traders recommend at least 1:2 or higher, meaning potential profit is at least twice the potential loss.

Q2: How do I determine where to place SL/TP?
A: Use technical analysis (support/resistance, volatility measures) rather than arbitrary percentages of your account.

Q3: Should I adjust my SL after entry?
A: You can move SL to break-even once trade moves favorably, but avoid widening it - this defeats its purpose.

Q4: What's the difference between fixed and trailing stops?
A: Fixed stays at one price, while trailing follows price movement to lock in profits while giving room for growth.

Q5: How does lot size affect risk?
A: Larger lots magnify both potential profits and losses proportionally - always calculate risk per trade.