How do i calculate risk?

✅ Risk Calculation Based On Pips (£1,000 Account)

🔹 Goal: Risk a fixed % of your account (e.g., 1%) using a stop-loss in pips, and calculate how much £ per pip you can afford.

Step-by-Step Example

Account Balance: £1,000
Risk per Trade: 1% = £10
Stop-Loss: 30 pips

How to Calculate £ Per Pip

£ per pip = Amount willing to risk/Stop-loss in pips = £10/30 pips = £0.33 per pip

This means:
If the trade = 30 pips against you, you’ll lose exactly £10, which is 1% of your account.

🔁 Different Scenarios – Pip Table

✅ How to Use This Table

1. Choose your stop-loss in pips based on structure (not emotions).

2. Use the formula:

   £ per pip = Risk £/Stop-loss pips​

3. Make sure your trade size keeps £ per pip within your risk limit.

🔒 Final Tip:

Stick to a fixed £ per pip based on your plan. For example, if you decide to trade at £0.50 per pip, your stop-loss size should never exceed:

£10/ £0.50=20 pips