Optimize Your Trading Strategy with Precise Risk Calculations
Are you trading forex, metals, indices, energy, or cryptocurrencies? Our Risk Management Calculator helps you control risk and maximize profits. Designed for traders of all levels, this tool calculates the exact pip distance and position size needed to limit your risk to a specified dollar amount. Whether you’re trading EURUSD, XAUUSD, NDX100, or BTCUSD, this calculator ensures you stay disciplined and avoid costly mistakes.
Risk Management Calculator
Enter values and click Buy or Sell to see results.
Instructions: Enter a positive Risk Amount in USD. For Buy trades, Stop Loss Value must be less than Entry Value. For Sell trades, Stop Loss Value must be greater than Entry Value.
`;
return;
}
// Validate Stop Loss based on trade direction
if (direction === "buy" && stoploss >= entry) {
resultDiv.innerHTML = `
Error: For Buy trades, Stop Loss Value must be less than Entry Value.
Example for Buy trade:
- Entry Value: 21420
- Stop Loss Value: 21390 (must be lower than Entry Value)
`;
return;
}
if (direction === "sell" && stoploss <= entry) {
resultDiv.innerHTML = `
Error: For Sell trades, Stop Loss Value must be greater than Entry Value.
Example for Sell trade:
- Entry Value: 21420
- Stop Loss Value: 21450 (must be higher than Entry Value)
`;
return;
}
// Calculate pip distance (absolute difference)
const pipDistance = Math.abs(entry - stoploss);
// Instrument specifications
const instruments = {
// Forex - Majors (1 pip = 0.0001 for most, 0.01 for USDJPY)
EURUSD: { pipValuePerLot: 10, pipSize: 0.0001, lotSize: 100000 },
GBPUSD: { pipValuePerLot: 10, pipSize: 0.0001, lotSize: 100000 },
USDCHF: { pipValuePerLot: 10, pipSize: 0.0001, lotSize: 100000 },
USDJPY: { pipValuePerLot: 10, pipSize: 0.01, lotSize: 100000 },
USDCAD: { pipValuePerLot: 10, pipSize: 0.0001, lotSize: 100000 },
AUDUSD: { pipValuePerLot: 10, pipSize: 0.0001, lotSize: 100000 },
NZDUSD: { pipValuePerLot: 10, pipSize: 0.0001, lotSize: 100000 },
// Metals
XAUUSD: { pipValuePerLot: 10, pipSize: 0.01, lotSize: 100 },
XAGUSD: { pipValuePerLot: 50, pipSize: 0.001, lotSize: 5000 },
XPTUSD: { pipValuePerLot: 10, pipSize: 0.01, lotSize: 100 },
// Indices
DJI30: { pipValuePerLot: 1, pipSize: 1, lotSize: 1 },
FTSE100: { pipValuePerLot: 1, pipSize: 1, lotSize: 1 },
NDX100: { pipValuePerLot: 1, pipSize: 1, lotSize: 1 },
SPX500: { pipValuePerLot: 1, pipSize: 1, lotSize: 1 },
GER40: { pipValuePerLot: 1, pipSize: 1, lotSize: 1 },
STX50: { pipValuePerLot: 1, pipSize: 1, lotSize: 1 },
JP225: { pipValuePerLot: 1, pipSize: 1, lotSize: 1 },
// Energy
UKOIL: { pipValuePerLot: 10, pipSize: 0.01, lotSize: 1000 },
USOIL: { pipValuePerLot: 10, pipSize: 0.01, lotSize: 1000 },
// Crypto
BTCUSD: { pipValuePerLot: 1, pipSize: 1, lotSize: 1 },
ETHUSD: { pipValuePerLot: 1, pipSize: 1, lotSize: 1 },
XRPUSD: { pipValuePerLot: 1, pipSize: 0.01, lotSize: 1000 }
};
const spec = instruments[instrument];
if (!spec) {
resultDiv.innerHTML = `
Error: Invalid instrument selected.
Please select a valid instrument from the dropdown menu.
`;
return;
}
// Calculate pips
const pips = pipDistance / spec.pipSize;
if (pips <= 0) {
resultDiv.innerHTML = `
Error: Stop Loss Value must be different from Entry Value.
Ensure Stop Loss Value is ${direction === "buy" ? "lower" : "higher"} than Entry Value.
`;
return;
}
// Calculate position size (lots) based on risk
const pipValue = spec.pipValuePerLot;
const positionSize = risk / (pips * pipValue);
const positionSizeRounded = Math.round(positionSize * 10000) / 10000;
// Display results
resultDiv.innerHTML = `
Instrument: ${instrument}
Trade Direction: ${direction.charAt(0).toUpperCase() + direction.slice(1)}
Entry Value: ${entry.toFixed(4)}
Stop Loss Value: ${stoploss.toFixed(4)}
Risk: $${risk.toFixed(2)}
Pip Distance: ${pips.toFixed(2)} pips
Position Size: ${positionSizeRounded} lots
Instructions: For ${direction} trades, ensure Stop Loss Value is ${direction === "buy" ? "less than" : "greater than"} Entry Value.
`;
}
How to Use the Risk Management Calculator
- Select Your Instrument: Choose from forex pairs (e.g., EURUSD, USDJPY), metals (e.g., XAUUSD), indices (e.g., NDX100), energy (e.g., USOIL), or crypto (e.g., BTCUSD).
- Enter Risk Amount: Input the dollar amount you’re willing to risk (e.g., $20).
- Set Entry Value: Enter your trade entry value (e.g., 21420 for NDX100).
- Set Stop Loss Value: Input your stop loss value. For Buy trades, it must be less than the entry value; for Sell trades, it must be greater.
- Choose Trade Direction: Click the green Buy button or red Sell button to calculate.
- Review Results: The calculator displays the pip distance and position size (in lots). If errors occur (e.g., invalid inputs), clear instructions guide you.
Example: For NDX100 at 21420 (entry), 21450 (stop loss), $20 risk, and a Sell trade, the calculator shows a 30-pip distance and 0.6667-lot position size.
