look at this trade
SL is 4 pips therefore TP is 8 pips
Most people getting a 4 pip win would think great £40 win !
I think
10k account
5% risk = £500 / 4 pips stop loss = £125 per pip using spread betting account
I win 8 pips which is a 10% return in this case I make 8 x £125 = £1000
Big difference from £40 because my risk reward is linked to my % gain
Think % NOT pips
SL is 4 pips therefore TP is 8 pips
Most people getting a 4 pip win would think great £40 win !
I think
10k account
5% risk = £500 / 4 pips stop loss = £125 per pip using spread betting account
I win 8 pips which is a 10% return in this case I make 8 x £125 = £1000
Big difference from £40 because my risk reward is linked to my % gain
Think % NOT pips