VSAAcademy

Risk education

Trading Risk Calculators and Formulas

Review correct position-size, lot-size, pip-value, risk-reward, drawdown, compounding, and profit-loss formulas.

Risk

Position Size

Translate account risk and stop distance into units without changing the risk budget.

FormulaRisk amount ÷ stop-loss distance
Enter values and calculate.
Educational planning only; verify contract specifications with your broker.
Forex

Forex Lot Size

Estimate lot size from monetary risk, stop distance in pips, and pip value per lot.

FormulaRisk amount ÷ (stop pips × pip value per lot)
Enter values and calculate.
Pip values vary by pair, quote currency, price, and account currency.
Forex

Pip Value

Understand how quote convention, price, and lot size affect the value of one pip.

FormulaFor USD/XXX: (0.0001 ÷ price) × lot units
Enter values and calculate.
For JPY pairs a pip is normally 0.01 rather than 0.0001.
Planning

Risk–Reward

Compare planned reward with the distance from entry to invalidation.

FormulaLong: (target − entry) ÷ (entry − stop)
Enter values and calculate.
A favorable ratio does not imply a high probability of success.
Performance

Drawdown

Measure the percentage decline from an equity peak to a later trough.

Formula(Peak − trough) ÷ peak × 100
Enter values and calculate.
Historical drawdown does not define future risk.
Planning

Compounding

Explore how a constant hypothetical periodic return changes capital over time.

FormulaPrincipal × (1 + periodic return)^periods
Enter values and calculate.
Constant returns are a mathematical illustration, not a forecast.
Performance

Profit / Loss

Calculate directional price change multiplied by position units.

FormulaLong: (exit − entry) × units; invert for short
Enter values and calculate.
Fees, spread, slippage, financing, and taxes are not included.
Risk

Risk Percentage

Convert a planned monetary loss into a percentage of current account balance.

FormulaRisk amount ÷ account balance × 100
Enter values and calculate.
Choose risk limits that match your own circumstances and constraints.

Sessions clock

Sydney · Tokyo · London · New York

Approximate major-session windows are shown in each market’s local time and update every second.

Sydney

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Tokyo

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London

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New York

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Session windows are educational approximations; exchange hours and holidays vary.