CHAPTER 28 · TOOL
Risk Management Calculator
Work out lot size, risk, liquidation distance and R:R in one place. When you are done, send the trade straight to the journal.
Inputs
Default: 4,050 (November 2026). Your own platform price is the most accurate.
Results
Lot size
—
Risk
—
Stop distance
—
Units
—
Notional
—
Margin
—
Max lot by margin
—
Liquidation distance
—
TP1
—
TP2
—
Break-even win rate
—
Expectancy (45% win)
—
| Instrument | Pip | Per lot | Note |
|---|---|---|---|
| EURUSD | 0.0001 | 10 USD | Standard lot is 100,000 units |
| USDJPY | 0.01 | ≈ 6.8 USD | Pip value moves with the rate |
| XAUUSD | 0.1 | 10 USD | One dollar on gold is ten points |
| US100 | 1.0 | 1 USD / unit | Indices carry higher spread and swap |
What pip size and pip value actually mean
Pip size is how much one pip is in price terms - which decimal of the quote moves by one step. Pip value is what that one pip is worth in money for your position size. The first is a price question, the second is a money question.
| Instrument | Pip size | Why | Value per lot |
|---|---|---|---|
| EURUSD / GBPUSD | 0.0001 | Fourth decimal of the quote | 0.0001 × 100,000 = 10 USD |
| USDJPY / USDCHF | 0.01 | Second decimal on JPY pairs | 0.01 × 100,000 = 1,000 JPY ≈ 6.8 USD |
| XAUUSD (gold) | 0.1 | 0.10 USD is one pip at most brokers | 0.1 × 100 oz = 10 USD |
| US100 / US30 | 1.0 | One index point is one pip | 1 × 1 = 1 USD per unit |
| What breaks your sizing | The right way |
|---|---|
| Treating a 5-decimal quote as a pip (0.00001) | That is a pipette/point; the pip is the 4th decimal |
| Assuming 1 lot of gold is always 100 oz | Check the contract spec on your platform (100 oz or 1 oz) |
| Using 0.0001 on a JPY pair | 0.01 on JPY pairs |
| Forgetting currency conversion | Express pip value in your account currency |
Educational material only · not financial advice.