Stop loss/margin call calculation help

umar.fxtrader

Trader
May 6, 2021
1
0
6
34
Lets say I’m trading with 100k in my trading account.
I only want to place a buy order using 50% of my equity which would be 50k. I’m using 1:400 leverage on a fixed trading account.
I want to know how to calculate how many pips I would need to go down if making a buy/sell order until to get margin called. I want to know how to calculate the value per pip so I can set my stop loss so I will only loose 50k not my full account of 100k.

In short I want to know how to calculate my stop loss so I won’t loose more than 50k of my 100k In my account.
 

Enivid

Administrator
Staff member
Nov 30, 2008
18,607
1,366
144
Odesa
www.earnforex.com
First, that's a totally backwards way to trade - you need to set your stop-loss based on the trading strategy, not based on your account size, position size, or greed.

Second, to actually answer your question, one variable is missing. The question that can be answered sounds like this:
How to calculate my stop loss so I won’t loose more than 50k of my 100k In my account with a position of X lots.

Now, if you know that X lots, then it becomes trivial (almost) to calculate the stop-loss. Basically SL = Risk / (PositionSize * 1LotPipValue). So, for your case and if you trade 10 lots of EUR/USD, the SL = 50,000 / (10 * 10) = 500 standard pips.