🧮 Interactive Tool

Paper Trading Calculator

Calculate position sizes, risk/reward ratios, stop losses, and take profit targets. Plan every trade before you enter.

Use Calculator Learn Concepts
Interactive Calculator

Trade Planning Calculator

Enter your trade details to calculate proper position sizing and risk management.

Trade Calculator
Plan your trades properly
Instrument
Account Balance Demo Account
USD
Risk Per Trade Recommended: 1-2%
%
Entry Price
Stop Loss Price -- pips
Take Profit Price -- pips

📊 Trade Plan Results

Position Size
0.03
lots
Pip Value
$0.30
per pip
Risk Amount
$10.00
30 pips
Reward Amount
$20.00
60 pips
Risk : Reward
1:2
Good
Break-Even Win Rate
33.3%
to be profitable

📈 Visual Trade Plan

TP: 1.0910 Entry: 1.0850 SL: 1.0820 +60 pips -30 pips LONG ↑
Account Risk Level 1% - LOW RISK
0% 2% Safe 5% Risky 10%
If trade WINS $1,020.00 (+2%)
If trade LOSES $990.00 (-1%)
Fundamentals

Key Concepts

Understanding these core concepts is essential before using the calculator. Each visual below shows exactly how these work in real trading.

📏 CONCEPT 1

What is a PIP? (Percentage in Point)

EUR/USD Price Display - Watch the PIP change! EUR/USD 1.08 5 0 3 THIS IS 1 PIP Pipette (0.1 pip) 1st 2nd 3rd 4th ★ 5th 1.0850 → 1.0860 = +10 pips ↑ 1.0850 → 1.0840 = -10 pips ↓ 1.0850 → 1.0851 = +1 pip
🎯 The 4th Decimal

For most currency pairs (EUR/USD, GBP/USD), 1 pip = 0.0001 — the 4th decimal place.

⚠️ JPY Pairs are Different

For JPY pairs (USD/JPY), 1 pip = 0.01 — the 2nd decimal place after the point.

💡 Quick Math

Count the digits that changed in the 4th position. 1.0850 to 1.0890 = 40 pips moved.

📊 CONCEPT 2

What is a TICK? (Smallest Price Movement)

🥇 GOLD (XAU/USD) 2650. 50 1 TICK = $0.01 2650.50 → 2651.50 = 100 ticks = $1.00 move 📈 US30 (DOW JONES) 43, 250 1 TICK = 1 POINT 43,250 → 43,350 = 100 points moved
🥇 Gold Ticks

For Gold, 1 tick = $0.01. A $1 move = 100 ticks. Tick value depends on your lot size.

📈 Index Points

For indices like US30/NAS100, movements are measured in "points" — each point = 1 tick.

⚠️ Key Difference

Pips are for Forex. Ticks/Points are for Gold, Indices, and Futures. Don't mix them up!

💰 CONCEPT 3

Position Size (Lots) — How Much Per Pip?

LOT SIZE determines how much you EARN or LOSE per pip MICRO LOT 0.01 1,000 units $0.10 per pip MINI LOT 0.10 10,000 units $1.00 per pip STANDARD LOT 1.00 100,000 units $10.00 per pip If price moves 10 pips in your favor: +$1.00 (0.01 lot × 10 pips × $0.10) +$10.00 (0.10 lot × 10 pips × $1.00) +$100.00 (1.00 lot × 10 pips × $10.00) ⚠️ Same math applies to LOSSES!
✅ Start Small

Beginners should use micro lots (0.01). $0.10/pip lets you learn without big losses.

📐 The Formula

Profit/Loss = Lot Size × Pips × Pip Value. (0.01 × 50 pips × $10 = $5.00)

🚨 Risk Warning

Bigger lots = bigger wins BUT also bigger losses. Match lot size to your account!

🛑 CONCEPT 4

Stop Loss (SL) — Your Safety Net

1.0880 1.0850 1.0820 ← ENTRY: 1.0850 🛑 STOP LOSS Trade closed automatically! 30 pips = Max Loss HOW SL WORKS 1. You BUY at 1.0850 2. Set SL at 1.0820 3. Price drops to 1.0820 4. Trade AUTO-CLOSES With 0.01 lot: -$3.00 max loss (30 pips × $0.10)
🚨 ALWAYS Use a Stop Loss

A stop loss limits your maximum loss. Without it, one bad trade can wipe your account.

📍 Where to Place It

Place SL below support (for buys) or above resistance (for sells). Give it enough room to breathe.

⚠️ Never Move SL Further

Moving your stop loss away from entry = increasing your risk. Stick to your original plan!

🎯 CONCEPT 5

Take Profit (TP) — Lock In Your Gains

1.0910 1.0850 1.0800 🎯 TAKE PROFIT ← ENTRY: 1.0850 Profit locked! 💰 60 pips = Target Profit HOW TP WORKS 1. You BUY at 1.0850 2. Set TP at 1.0910 3. Price rises to 1.0910 4. Trade AUTO-CLOSES With 0.01 lot: +$6.00 profit! (60 pips × $0.10)
💰 Secure Your Profits

TP automatically closes your trade at your target. No need to watch the screen 24/7!

📍 Where to Place It

Place TP at key resistance (for buys) or support (for sells). Use PDH, PDL, or round numbers.

💡 Pro Tip

Set TP at least 2× your SL distance. This ensures good Risk:Reward ratio (next concept!)

⚖️ CONCEPT 6

Risk:Reward Ratio — The Most Important Number

Risk:Reward = How much you can GAIN vs how much you might LOSE RISK $10 REWARD $20 R:R = 1:2 ❌ BAD: 1:0.5 Risk $10 to make $5 Need 67% win rate! ⚠️ OK: 1:1 Risk $10 to make $10 Need 50% win rate ✅ GOOD: 1:2+ Risk $10 to make $20+ Only need 33% win rate!
✅ Aim for 1:2 or Better

With 1:2 R:R, you only need to win 33% of trades to be profitable. The math works in your favor!

📐 The Formula

R:R = (TP - Entry) ÷ (Entry - SL). Example: (1.0910 - 1.0850) ÷ (1.0850 - 1.0820) = 60÷30 = 1:2

🚨 Avoid Bad R:R

Never take trades where reward is less than risk. You'll need unrealistic win rates to profit!

📐 Position Size Formula

Lot Size = Risk Amount ÷ (SL Pips × Pip Value per Lot)

Example ($1,000 account, 1% risk, 30 pip SL):

Risk Amount = $1,000 × 1% = $10

Lot Size = $10 ÷ (30 × $10) = 0.03 lots

Critical Concept

Understanding Risk:Reward

⚖️ R:R COMPARISON

Same 50% Win Rate, Different Results

❌ BAD: 1:0.5 R:R 10 trades × $10 risk 5 wins: +$25 5 losses: -$50 NET: -$25 😢 ⚠️ OK: 1:1 R:R 10 trades × $10 risk 5 wins: +$50 5 losses: -$50 NET: $0 😐 ✅ GOOD: 1:2 R:R 10 trades × $10 risk 5 wins: +$100 5 losses: -$50 NET: +$50 🎉

Break-Even Win Rates

R:R Ratio Break-Even Win Rate Quality
1:0.566.7%❌ Poor
1:150%⚠️ Minimum
1:1.540%⚠️ Acceptable
1:233.3%✅ Good
1:325%✅ Excellent

📐 Break-Even Win Rate Formula

Break-Even % = 1 ÷ (1 + R:R Ratio) × 100

For 1:2 R:R: 1 ÷ (1 + 2) = 33.3%

You only need to win 1 out of 3 trades to break even!

Best Practices

Paper Trading Tips

✓

Do This

  • Calculate position size BEFORE entering
  • Stick to 1-2% risk per trade maximum
  • Aim for minimum 1:2 risk:reward
  • Write down your trade plan
  • Treat demo money like real money
  • Track ALL trades in a journal
  • Use this calculator for every trade
✕

Avoid This

  • Risking more than 5% on any trade
  • Trading without a stop loss
  • Moving stop loss further away
  • Taking trades with less than 1:1 R:R
  • Over-leveraging because "it's demo"
  • Entering without a clear plan
  • Ignoring your losses
⚠️

Paper Trading Disclaimer

This calculator is for educational and demo trading purposes only. Real trading involves substantial risk of loss. Always practice on a demo account before risking real money. Past performance does not guarantee future results.