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MT4 risk calculation

  • #1
  • First Post: Edited 2:32am Aug 8, 2018 2:02am | Edited 2:32am
Hello everyone,

i used to work on Trading Station for years and now i was forced to switch to MT4. On Trading Station i hadn't to calculate the volume, lot size etc., so i am little confused at the moment.

Example setup:

account currency €
CHF/JPY
entry @ 112.025
sl @ 111.576
volume 10.80

I calculated that my total risk in this case would be 3757 €

Well, my broker told me that i am totally wrong and this setup would be a much higher risk than my equity. Anyone here that can explain it to me?

Thanks guys
  • #2
  • Aug 8, 2018 2:45am Aug 8, 2018 2:45am
Quoting Upwave
Hello everyone, i used to work on Trading Station for years and now i was forced to switch to MT4. On Trading Station i hadn't to calculate the volume, lot size etc., so i am little confused at the moment. Example setup: account currency € CHF/JPY entry @ 112.025 sl @ 111.576 volume 10.80 I calculated that my total risk in this case would be 3757 € Well, my broker told me that i am totally wrong and this setup would be a much higher risk than my equity. Anyone here that can explain it to me? Thanks guys
i dont want to go into detail, u can check it under the exposure tab. (conversion from CHF TO EUR to check your exact risk)

but generally
1 lot = $10/pip
10.8 lot = $108/PIP.

so from ur entry to sl is 44.9 pips. which equates to 108*44 = $4752 aprox

however do note that because ur account is in euro trading a non euro pair, this is considered as a cross currency execution. . the exact amount will vary. due to the chf or jpy to eur exchange rate fluctuation causing a change in per pip value. ie, chf has to be converted to eur at market rate, before ur floating profit and loss is shown. details which u can see under the exposure tab when u have open trades.

if you are really hard up on getting the exact figure. using free margin to calculate risk would be better approximation.
  • #3
  • Aug 8, 2018 2:51am Aug 8, 2018 2:51am
Quoting Bicarus
{quote} i dont want to go into detail, u can check it under the exposure tab. (conversion from CHF TO EUR to check your exact risk) but generally 1 lot = $10/pip 10.8 lot = $108/PIP. so from ur entry to sl is 44.9 pips. which equates to 108*44 = $4752 aprox however do note that because ur account is in euro trading a non euro pair, this is considered as cross currency. . the exact amount will vary. due to the chf or jpy to eur exchange rate fluctuation. details which u can see under the exposure tab when u have open trades. if you are really hard...
Thanks for your comment Bicarus appreciate it. Why my Broker told me that i could even loose more than my equity with my setup above? Really strange.
I just found the Babypips position size calculator.. It tells me 4.36 is the correct volume for my setup above.
  • #4
  • Aug 8, 2018 2:57am Aug 8, 2018 2:57am
Quoting Upwave
{quote} Thanks for your comment Bicarus appreciate it. Why my Broker told me that i could even loose more than my equity with my setup above? Really strange.
what is ur balance? what is your leverage?

as per the details u gave. 10.8lots = 1,080,000 units. (100,000 units / lot)
assuming ur leverage is 50:1,

1,080,000/50 = $21,600 (the balance which u need to have to open 10.8lots) - bear in mind again, this is a rough figure due to the cross currency execution exchange rate.
  • #5
  • Aug 8, 2018 3:11am Aug 8, 2018 3:11am
Quoting Bicarus
{quote} what is ur balance? what is your leverage? as per the details u gave. 10.8lots = 1,080,000 units. (100,000 units / lot) assuming ur leverage is 50:1, 1,080,000/50 = $21,600 (the balance which u need to have to open 10.8lots) - bear in mind again, this is a rough figure due to the cross currency execution exchange rate.
75600€ equity
1:30 leverage
My risk per trade is 5 %
  • #6
  • Aug 8, 2018 3:14am Aug 8, 2018 3:14am
Quoting Upwave
{quote} 75600€ equity 1:30 leverage My risk per trade is 5 %
okay, i think you have gotten your answer. its all in the cross currency exchange rate conversion.

good luck.

regards
Bicarus
  • #7
  • Last Post: Aug 8, 2018 3:25am Aug 8, 2018 3:25am
Quoting Bicarus
{quote} okay, i think you have gotten your answer. its all in the cross currency exchange rate conversion. good luck. regards Bicarus
Yes, thank you very much for your help.

Have a good week !

Best regards
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