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You can use the standard formula to manage the risks for your account as follows:
1. Determine the maximum amount you are willing to lose divided by the stop-loss price range.
For example, if your account has $1000, and you only accept a maximum loss of $50 for this #Long #LOOM trade, the entry price is 0.278, and the stop-loss point is 0.256, then the stop-loss price range would be 0.278-0.256=0.022.
2. To determine the volume of the trade that would result in a maximum loss of $50 when the stop-loss price is reached, divide $50 by 0.022, which equals 2272 LOOM.
Therefore, if you go #Long with 2272 LOOM at a price of 0.278, and the stop-loss price is 0.256, you will lose $50.
When you apply this formula, if you set the leverage to 20x or 100x, the amount of money you lose will still be the same.
Only the % it displays is different. It has nothing to do with the actual amount of money you lose or gain!
This is the standard formula for managing your account. You can try implementing a similar trade to see if it works accurately.
Before entering a buy or sell trade, make sure you are clear on the entry point, take-profit point, and stop-loss point. Once you have determined these three points, you will know the appropriate volume for the trade.
🔸Feel free to share this formula on your wall for future reference!