is this calculation correct

Hi there i hope somebody can shed some light on this..

lets say

Account = 5000 euros
risk = 0.2% = 10 euros
stop size = 50 pips

pip value = oanda lot of 100 units / 10000 = 0.01* 50 pipSL = 0.5

position size = 10/0.5 = 20 lots * 100 per lot = 2000 units

true leverage = 5000 account size / 2000 posi size= 2.5:1

or

true leverage = 2000 posi size / 5000 account size = 0.4 :1 ????


thnx for any help

This is correct; you should invest 2,000 Euros in this trade.


Risk = .002 * 5,000 = 10 Euros
Stop Size = 50 pips

Lot size = Maximum account loss / Move to stop
Lot size = 10 / .0050 = 2,000 Euros


Your true leverage is 2,000 / 5,000 = .4 - You are using 5,000 Euros to purchase 2,000 Euros.