sb
You shoudn't be thinking in terms of leverage when managing risk. You should be thinking in terms if percentages, for example I don't risk more than 5% of my total capital on each trade.
Here is the formula you need to decide how much your stake is going to be each trade, also taking into consideration your max risk level.
Stake= Capital*0.05= X
X/Stop loss
The 0.05 equates to 5%, the max you should be willing to risk.
X is the amount you are looking to risk in a particular trade.
Where it says stop loss you put your stop loss distance, i.e if your stop loss is 40 points away from your entry price you would put 40 there.
Hope this helps.
You shoudn't be thinking in terms of leverage when managing risk. You should be thinking in terms if percentages, for example I don't risk more than 5% of my total capital on each trade.
Here is the formula you need to decide how much your stake is going to be each trade, also taking into consideration your max risk level.
Stake= Capital*0.05= X
X/Stop loss
The 0.05 equates to 5%, the max you should be willing to risk.
X is the amount you are looking to risk in a particular trade.
Where it says stop loss you put your stop loss distance, i.e if your stop loss is 40 points away from your entry price you would put 40 there.
Hope this helps.