Forex Trading Risk Calculators

Last modified: December 1, 2020
You are here:
Estimated reading time: 2 min

Forex Trading Calculators

Our forex trading calculators can help you quickly calculate the pip value of your trades
and make it easier for you to know how much risk you have in play.

FX Risk Calculator

Every time you place a trade in the market you should know exactly how much ‘Risk’ (potential loss) you have in play. This is very important for the Practical Assessment because if your Open Risk (OR) in the market exceeds your Available Drawdown Limit (ADL), the most recent trade you placed will be automatically closed to bring your account within your Available Drawdown Limit.

Our Risk Calculator will help you estimate the potential risk of your proposed trade. To calculate your risk, choose your currency pair, input the hypothetical opening, and stop loss price, select buy or sell, and then enter the lot size and click calculate. Please remember that this is just an estimate and is not guaranteed as you could experience slippage on your exit price should there be a liquidity event.

How is the Risk Calculated?

Result in pips

When buying: (Closing price – opening price) / 0.0001
When selling: (Opening price – closing price) / 0.0001

Result in monetary value

When buying: (Closing price – opening price) x (quote currency/account currency) x (lot size x 100,000)
When selling: (Opening price – closing price) x (quote currency/account currency) x (lot size x 100,000)

Buy order Example:

Account currency = USD
Currency pair = GBP/USD
Base = USD Quote =GBP
Opening price = 1.44805
Closing price = 1.44955
Lot size = 1.00
Profit = (1.44955 – 1.44805) x (1.00 x 100,000) = $150 USD

Sell order Example:

Account currency = USD
Currency pair = GBP/USD
Base = USD Quote =GBP
Opening price = 1.44805
Closing price = 1.44955
Lot size = 1.00
Profit = (1.44805 – 1.44955) x (1.00 x 100,000) = -$150 USD

FX Pip Value Calculator

Not all currency pairs have the same pip value. How the pair is quoted will determine its pip value. It is imperative you know the value of a pip for the instrument your trading. It is not only an important part of your risk management strategy but will also stop you from having larger exposure than you planned. To determine the pip value, select your currency pair, add the lot size, and click calculate.

How is the pip value calculated?

Pip Value = (Pip in decimal places * Units of base currency) / Market spot price

View Example 1

1 lot of GBP/USD with a USD account
One pip in decimals: 0.0001
Units of base currency: 100,000
Market spot price for GBP/USD: 1.33756
Calculation: (0.0001 * 100,000 = 10) / 1.33756 (opening price) =£7.48 GBP
To calculate the USD value: £7.48 x 1.33756 = $10 USD

View Example 2

Calculation for JPY pair: (1.00 * 100,000) = 1000 / 104.350 (Market spot price)
1 lot of USD/JPY on a USD account
1 pip in decimals: 0.01
Units of base currency: 100,000
Market spot price: 104.350
Calculation: 0.01 * 100,000 = 1000 / 104.350 (Market spot price) = $9.58 USD
Was this article helpful?
Dislike 0
Views: 265