Position Sizing

Now that we’ve learned the hard lesson of trading too big, let’s get into how to correctly use leverage using proper “position sizing.”

Position sizing is setting the correct amount of units to buy or sell of currency pair.

It is one of the most crucial skills in a forex trader’s skill set.

Forex Position Sizing

Actually, we’ll go ahead and say it is THE most important skill.

Traders are “risk managers” first and foremost, so before you start trading real money you should be able to do basic position size calculations in your sleep… or at least after you wake up, still groggy, and try to trade the NFP report!

Finding the position size that will keep you within your risk comfort level is relatively easy…and we use the phrase “relatively easy” loosely here. Besides, if Pipcrawler, who can’t tell his pinkies from his toes, can do it, then you can too!

Depending on the currency pair you are trading and your account denomination (is your account in dollars, euros, pounds, etc??), a step or two needs to be added to the calculation.

Now, before we can get our math on, we need five pieces of information:

  1. Account equity or balance
  2. Currency pair you are trading
  3. The percent of your account you wish to risk
  4. Stop loss in pips
  5. Conversion currency pair exchange rates

Easy enough right? Let’s move on to a few examples.

恰当头寸规模的重要性

既然我们已经学到了交易太大会付出沉痛的代价,让我们了解一下如何使用杠杆配合恰当的“头寸规模”。

确定头寸规模是指设定正确的货币对买卖单位。

这是交易者技能套装中最重要的技巧之一。

Position Sizing 头寸大小 1

事实上,我们将进一步,将其称为重要的技能。

交易者首先是“风险管理者”,因此在用实际的资金交易前,你应该能在睡梦中计算基本的头寸规模……或至少在你醒来,仍然睡眼惺忪的时候,试着交易一下非农就压报告!

找对头寸规模将能较轻松的使你处于适宜的风险之中……这里我们随便使用了“较轻松”这个词。

根据你所交易的货币对和你的账户币种(你的账户是美元、欧元、英镑,等等??),计算时需要包含的一两个步骤。

开始计算前,我们需要五点信息:

1.账户净值或余额

2.你所交易的货币对

3.你愿意冒的风险比率

4.止损设定点数

5.转换货币对汇率

够简单吧?让我们来看几个例子。

Calculating Position Sizes

To make things easier for you to understand, as usual, we’ll be explaining everything with an example.

Calculating Forex Position SizesThis is Newbie Ned.

Long time ago, back when he was even more of a newbie than he is now, he blew out his account because he put on some enormous positions.

It was as if he was a gun slinging cowboy from the Midwest – he traded from the hip and traded BIG.

Ned didn’t fully understand the importance of position sizing and his account paid dearly for it.

He re-enrolled into the School of Pipsology to make sure that he understands it fully this time, and to make sure what happened to him never happens to you!

In the following examples, we’ll show you how to calculate your position size based on your account size and risk comfort level.

Your position size will also depend on whether or not your account denomination is the same as the base or quote currency.

Account Denomination the same as the Counter Currency

Newbie Ned just deposited USD 5,000 into his trading account and he is ready to start trading again. Let’s say he now uses a swing trading system that trades EUR/USD and that he risks about 200 pips per trade.

Ever since he blew out his first account, he has now sworn that he doesn’t want to risk more than 1% of his account per trade. Let’s figure how big his position size needs to be to stay within his risk comfort zone.

Using his account balance and the percentage amount he wants to risk, we can calculate the dollar amount risked.

USD 5,000 x 1% (or 0.01) = USD 50

Next we divide the amount risked by the stop to find the value per pip.

(USD 50)/(200 pips) = USD 0.25/pip

Lastly, we multiply the value per pip by a known unit/pip value ratio of EUR/USD. In this case, with 10k units (or one mini lot), each pip move is worth USD 1.

USD 0.25 per pip * [(10k units of EUR/USD)/(USD 1 per pip)] = 2,500 units of EUR/USD

So, Newbie Ned should put on 2,500 units of EUR/USD or less to stay within his risk comfort level with his current trade setup.

Pretty simple eh? But what if your account is the same as the base currency?

Account Denomination the same as Base Currency

Let’s say Ned is now chilling in the euro zone, decides to trade forex with a local broker, and deposits EUR 5,000.

Using the same trade example as before (trading EUR/USD with a 200 pip stop) what would his position size be if he only risked 1% of his account?

EUR 5,000 * 1% (or 0.01) = EUR 50

Now we have to convert this to USD because the value of a currency pair is calculated by the counter currency. Let’s say the current exchange rate for 1 EUR is $1.5000 (EUR/USD = 1.5000).

All we have to do to find the value in USD is invert the current exchange rate for EUR/USD and multiply by the amount of euros we wish to risk.

(USD 1.5000/EUR 1.0000) * EUR 50 = approx. USD 75.00

Next, divide your risk in USD by your stop loss in pips:

(USD 75.00)/(200 pips) = $0.375 a pip move.

This gives Ned the “value per pip” move with a 200 pip stop to stay within his risk comfort level.

Finally, multiply the value per pip move by the known unit-to-pip value ratio:

(USD 0.375 per pip) * [(10k units of EUR/USD)/(USD1 per pip)] = 3,750 units of EUR/USD

So, to risk EUR 50 or less on a 200 pip stop on EUR/USD, Ned’s position size can be no bigger than 3,750 units.

Still pretty simple, eh?

Well now it gets slightly more complicated.

Don’t worry though. The FX-Men got yo’ back and we’ll explain everything so it’ll become as easy as baking a cake.

计算头寸规模

为了让事情简单易懂,与往常一样,我们将举例说明每件事。

Position Sizing 头寸大小 2

这是新手张三。

很久之前,他是个比现在还要青葱的新手。由于他使用的头寸规模巨大,他损失了整个账户。

他就像个从中西部来的牛仔——不用脑子交易,还大规模交易。

张三并未全面理解头寸规模的重要性,他的账户为此付出了沉重的代价。

现在他重新开始了学习课程,并确保自己完全理解了相关内容。别让发生在他身上的事在你身上重演!

在下列例子中,我们将向你展示如何基于你的账户大小和适宜的风险水平计算头寸规模。

你的头寸规模还取决于你的账户的币种是基础货币还是报价货币。

账户币种为相对货币

新手张三往他的交易账户中存入了5000美元,他准备好再次开始交易。假设他使用的是用来交易欧元/美元的波段交易系统,每次交易他冒200点的险。

自从损失了第一个账户,他发誓每次交易不会拿高于账户1%的金额冒险。让我们来计算一下在他的风险适宜区里,他的头寸规模应该是多少。

通过他的账户余额和他所希望的账户风险比,我们可以计算出风险数额。

5000美元X 1%(或0.01)=50美元

接下来,我们用风险数额除以止损得出每点价值。

50美元/200点=0.25美元/点

最后,用每点价值乘以欧元/美元已知的单位/点价值比。在这个例子中,1万单位(或一迷你手),每点变动价值为1美元。

0.25美元/点*[(1万单位欧元/美元)/(1美元/点)]=2500单位欧元/美元

所以,新手张三应交易2500单位欧元/美元或更小的数目以便在现有账户设定下处于适宜的风险水平。

很简单哈?但要是你的账户币种为基础货币呢?

账户币种为基础货币

假设张三现在呆在欧元区,决定通过当地经纪商进行外汇交易,账户总额为5000欧元。

还用之前的例子(交易欧元/美元,止损设定200点),如果他只愿意拿账户总额的1%冒险,他的头寸规模应该是多少?

5000欧元*1%(或0.01)=50欧元

现在我们要把它换算为美元,因为货币对是以相对货币计价的。假设现有汇率为1欧元可兑换1.5000美元(欧元/美元=1.5000)。

我们得出了换算为美元的价值,就要转换欧元/美元的现有汇率,再乘上我们愿意拿来冒险的欧元总额。

(1.5000美元/1.0000欧元)*50欧元=约为75美元

接下来,用以美元计算的风险除以止损点数。

(75美元)/( 200点)=0.375美元/点

这给出了止损设定200点,在张三适宜风险比之内的“每点价值”。

最后,用每点价值乘以已知的单位/点价值比:

(0.375美元/点)*[ (1万单位欧元/美元)/(1美元/点)]=3750单位欧元/美元

因此,冒50欧元或更小的险,以200点止损设定交易欧元/美元,张三的头寸规模不能超过3750单位。

仍然很简单,哈?

现在它变得复杂点了。

别担心。我们会解释一切,让它变得和烤蛋糕一样容易。

Complex Position Sizing

Complex Forex Position Sizing

In this lesson, we’ll teach you how to calculate for pairs in which your account denomination isn’t one of currencies in the pair currency pair that you wanna trade.

Account Denomination is not in the Currency Pair traded, but the same as the Conversion Pair’s Counter Currency.

Ned is back in the U.S., (we think that he’s actually a super spy just like Forex Ninja, traveling and saving the world in his free time) and today he decides to trade EUR/GBP with a 200 pip stop. To find the correct position size, we need to find the value of Ned’s risk in British Pounds.

Remember, the value of a currency pair is in the counter currency.

Okay let’s straighten things out here. He’s back trading with his U.S. broker selling EUR/GBP and he only wants to risk 1% of his USD 5,000 account, or USD 50.

To find the correct position size in this situation, we need the GBP/USD exchange rate. Let’s use 1.7500 and because his account is in USD, we need to invert that exchange rate to find the proper amount in British Pounds.

USD 50 * (GBP 1/USD 1.7500) = GBP 28.57

Now, we just finish the rest the same way as the other examples. Divide by the stop loss in pips:

(GBP 28.57)/(200 pips) = GBP 0.14 per pip

And finally, multiply by the known unit-to-pip value ratio:

(GBP 0.14 per pip) * [(10k units of EUR/GBP)/(GBP 1 per pip)] = approximately 1,429 units of EUR/GBP

Ned can sell no more than 1,429 units of EUR/GBP to stay within his pre-determined risk levels.

Account Denomination is not in the Currency Pair traded, but the same as the Conversion Pair’s Base Currency.

Ned decides to go snowboarding in Switzerland, and in between a couple of double black diamond runs, he opens up his trading account on his super spy phone with a local FX broker. He sees a great setup on CHF/JPY, and he has decided that he will get out of the trade if it goes beyond a major resistance level–about 100 pips against him. Ned will only risk the usual 1% of his CHF 5,000 account or CHF 50.

First, we need to find the value of CHF 50 in Japanese yen, and since the account is the same denomination as the conversion pair’s base currency, all we have to do is multiply the amount risked by CHF/JPY exchange rate (85.00):

CHF 50 * (JPY 85.00/ CHF 1) = JPY 4,250

Now, we just finish the rest the same way as the other examples. Divide by the stop loss in pips:

JPY 4,250/100 pips = JPY 42.50 per pip

And finally, multiply by a known unit-to-pip value ratio:

JPY 42.50 per pip * [(100 units of CHF/JPY)/(JPY 1 per pip)] = approximately 4,250 units of CHF/JPY

Shabam! There you have it!

Ned can trade no more than 4,250 units of CHF/JPY to keep his loss at CHF 50 or less.

复合头寸规模

Position Sizing 头寸大小 3

本课,我们将教你,当账户币种不是你想要交易的货币对中的货币时,头寸规模如何计算。

账户币种不是所交易的货币对中的任意一种,而是转换货币中的相对货币

张三回到美国,(我们认为他实际上是一名超级间谍,游走于各地,拯救世界)。今天,他决定交易欧元/英镑,止损设定200点。想要找出正确的头寸规模,我们需要确定张三愿意冒的风险(以英镑为单位)。

记住,货币对的价值是以相对货币计算的。

好吧,让我们把事情弄清楚。他回到美国,通过美国经纪商卖出欧元/英镑。他仅愿意拿其5000美元账户的1%冒险,即50美元。

要找到这种情况下的正确的头寸规模,我们需要知道英镑/美元的汇率。假设汇率为1.7500,因为他的账户的币种是美元,我们需要转换汇率,计算正确的英镑数额。

50美元*(1英镑/1.75美元)=28.57英镑

现在,剩下的部分和其他的例子一样。除以止损点数:

28.57英镑/200点=0.14英镑/点

最后,乘以已知的单位/点价值比:

0.14英镑/点*[(1万单位欧元/英镑)(1英镑/点)]=约为1426单位欧元/英镑

要向处于预先设定的风险水平内,张三不能卖出超过1429单位欧元/英镑。

账户币种不是所交易的货币对中的任意一种,而是转换货币中的基础货币

张三决定去瑞士滑雪,期间,他用自己的超级间谍电话通过当地外汇经纪商开立了一个交易账户。他发现了很好的瑞郎/日元行情,他决定如果该货币对冲破重要阻力水平——背离他100点左右,他就离开交易。张三仅愿意拿其5000瑞郎账户的1%冒险,即50瑞郎。

首先,我们需要找出50瑞郎换算为日元后的价值。由于账户币种与转换货币的基础货币相同,我们要做的就是用它乘上瑞郎/日元的汇率(85.00)。

50瑞郎*(85日元/1瑞郎)=4250日元

现在,剩下的部分和其他的例子一样。除以止损点数:

4250日元/100点=42.50日元/点

最后,乘以已知的单位/点价值比:

42.50日元/点*[(1万单位瑞郎/日元)(1日元/点)]=约为4250单位瑞郎/日元。

要保证损失小于等于50瑞郎,张三不能交易超过4250单位瑞郎/日元。

Summary Of Position Sizing

Tips On Forex Position Sizing

After journeying across the globe with Newbie Ned, and through some basic position sizing examples, you’re well on your way to becoming a seasoned risk manager.

Now knowing how to set the correct position sizes is only a part of what it takes to become a pro at risk management.

The other part is discipline.

Stick to your stops and pre-determined risk comfort levels and you’ll be sure to have enough after your losses to take advantage of profitable opportunities.

Finally, we know that you won’t always have a calculator handy or a position sizing feature included with your trading platform, so we here at sutfx.com have decided to take it upon ourselves and have built a handy-dandy position sizing calculator for you! by babypips

Bam! Aren’t we cool? C’mon… Time to start a slow clap… Okay, nevermind.

Use the calculator if you need it…

Actually, use it first every single time you decide to put a trade on.

As the old adage goes, “Better be safe than sorry!”

总结:头寸规模

 Position Sizing 头寸大小 4

在和张三一起环游了世界之后,通过基本的头寸规模实例,你已经在通往老练的风险管理者的道路上。

知道如何设定正确的头寸规模只是成为风险管理专家的一部分,另一部分是有原则。

坚持自己的止损设定和预定的风险适宜水平,你能确保在受损后仍能抓住获利机会。

最后,我们知道你的手边不一定有计算器,你的交易平台中不一定包含头寸规模计算工具,所以www.sutfx.com决定承担起这个责任,为你建立了一个方便的头寸规模计算器!仓位计算器

来自BABYPIPS很酷吧!来吧……鼓掌……好吧,别介意。

如果需要,就用这个计算器。

事实上,每次决定开始交易时,都要先用它计算一下。

就如古语所说,“小心驶得万年船!”