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Forex Market Risk Control

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99 views

Forex Market Risk Control

Uploaded by

fawadkhantemp
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Setting Up Forex Trading Screen

Forex Sizing and Risk Management


Forex Market Risk Control

By: Alson Chew


By: Alson Chew
[email protected]
All Adam Khoo Updated Courses, Communities and CSM
Available. Courses From other creators also Available.
© 2021 Piranha Pte Ltd. All rights reserved.

Copyright © 2020 Adam Khoo Learning Technologies Group Pte Ltd. All Rights Reserved. 1
SETTING UP FOREX TRADING SCREEN

Points to note for Forex Trading Screen in Thinkorswim


- At the moment, we cannot execute spot forex trades in thinkorswim but we can see
the live forex charts for funded accounts

[email protected]

© 2021 Piranha Pte Ltd. All rights reserved. 2


FOREX MARKET SIZING AND RISK MANAGEMENT
Spot Forex Sizing Method
[email protected]
Due to the real time fluctuation in FX rates, we will be using the online spot FX calculator
at http://www.myfxbook.com/forex-calculators/position-size

Please note the following while using the online calculator for risk management sizing purpose:

1.) Yen-based pair for example GBP/JPY, AUD/JPY, EUR/JPY are based on 0.01 per pip.

For example, if you are looking to short GBP/JPY


SHORT Entry: 142.935
SL: 143.975
Difference between Short entry and SL is 143.975-142.935=1.04
Therefore in the Stop-Loss, pips column in the online calculator please input as 1.04/0.01=104

And for a risk of say 400USD, your short size should be shown as 42042 units.

2.) Other non-Yen based pair for example EUR/USD are based on 0.0001 per pip.

For example, if you are looking to long EUR/USD


LONG Entry: 1.12541
SL: 1.12333
Difference between Long entry and SL is 1.12541-1.12333=0.00208
Therefore in the Stop-Loss, pips column in the online calculator please input as 0.00208/0.0001 = 20.8

And for a risk of say 400USD, your long size should be shown as 192308 units.

© 2021 Piranha Pte Ltd. All rights reserved. 3


FOREX MARKET SIZING AND RISK MANAGEMENT

EUR/USD (Non-Yen Based) Spot Forex Pair Sizing Example

[email protected]

For EUR/USD (Non-Yen) Spot Forex SHORT ENTRY


SL: $1.12385
Short Entry: $1.11977
Difference between Entry and SL = $0.00408
0.00408/0.0001 (for Non-Yen based Pair) = 40.8 pips

© 2021 Piranha Pte Ltd. All rights reserved. 4


FOREX MARKET SIZING AND RISK MANAGEMENT

[email protected]

Your account size


Amount you risking for
this trade in USD.

Important!
Please click on Swap
with Money to see dollar
Key in the pips value value instead of %.
you calculated earlier on
This will be the size you
input into your forex
Click Calculate trading platform

© 2021 Piranha Pte Ltd. All rights reserved. 5


FOREX MARKET SIZING AND RISK MANAGEMENT

AUD/JPY (Yen Based) Spot Forex Pair Sizing Example

For AUD/JPY (Yen) Spot Forex LONG ENTRY


Long Entry: $65.193
SL: $64.94
Difference between Entry and SL = $0.253
0.253/0.01 (for Yen based Pair) = 25.3 pips

[email protected]

© 2021 Piranha Pte Ltd. All rights reserved. 6


FOREX MARKET SIZING AND RISK MANAGEMENT

Your account size


[email protected] Amount you risking for
this trade in USD.

Important!
Please click on Swap
with Money to see dollar
Key in the pips value value instead of %.
you calculated earlier on
This will be the size you
input into your forex
Click Calculate trading platform

© 2021 Piranha Pte Ltd. All rights reserved. 7


Setting Up Forex Trading Screen
Forex Sizing and Risk Management
Forex Market Risk Control

By: Alson Chew


By: Alson Chew
[email protected]
All Adam Khoo Updated Courses, Communities and CSM
Available. Courses From other creators also Available.
© 2021 Piranha Pte Ltd. All rights reserved.

Copyright © 2020 Adam Khoo Learning Technologies Group Pte Ltd. All Rights Reserved. 8

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