Hi guys, complete newcomer , and that I have a query on prevent loss.


Ok, so say I've a $10K account and and want to risk 2% on a transaction, so $200.

I decide a 100 pip S/L is right for this particular trade so I need two miniature lots to acquire the right place dimensions.

Risk Number = Stop loss in pips No. Of lots
200 = 100 x 2

Ranking size = 20,000
Leverage = Ranking size/Account size = 20,000/10,000 = 2:1


So far so good....

However, say I thought 40 pips was a better place to place my S/L for this trade. Now we have

200 = 40 x 5 or yet another example
200 = 10 x 20

And I am considering 5:1 (or 20:1) leverage that's unacceptable. My question is Is your S/L completely dependant on your risk dimension? Since it look like it is. But doesn't that limit your trading options since you're stuck trading pips to keep your leverage reduced?