Enter your entry price and the stop loss and take profit distances in pips to get the price levels and what each is worth.
A stop loss closes a trade at a loss you have chosen, and a take profit closes it at a gain you have chosen. Setting both before you enter takes emotion out of the trade. For a buy, the stop loss is below the entry price and the take profit is above it. For a sell, they are the other way round. The calculator turns the distances you enter in pips into price levels.
Each distance in pips is multiplied by the value of a pip for your position size to give the money at risk and the money to gain, in your account currency. Comparing the two gives the risk to reward ratio. For example, a 30 pip stop and a 60 pip target is 1 : 2, so the possible gain is twice the possible loss.
There is no single right distance. Many traders place the stop beyond a recent swing high or low, or a multiple of the average daily range, and set the target at least as far as the stop. A very tight stop is easily hit by normal noise, and a very wide one needs a smaller position to keep the risk the same. Use the lot size calculator to find the position for a given risk.
For a buy, subtract the stop distance in pips times the pip size from the entry price. For a sell, add it.
For a buy, add the target distance times the pip size to the entry price. For a sell, subtract it.
It depends on the pair and the time frame. Many traders base it on recent volatility rather than a fixed number of pips.
It is the take profit distance divided by the stop loss distance. A 30 pip stop and 60 pip target is 1 : 2.
Yes. A buy closes at the bid price and a sell at the ask, so the spread can trigger a stop slightly earlier than the chart suggests.
Pick another tool to jump straight to it.