TMBy Tim Morris Reviewed by the ForexMT4Indicators teamUpdated
Plan one forex trade from entry, stop and target prices. Enter a position size directly or derive standard lots from an account balance and selected risk percentage, then inspect stop exposure, target value, reward-to-risk and before-cost account impact. The calculator does not rate safety, predict outcomes or declare a trade ready.
Enter one hypothetical or planned price path. Nothing is pre-filled as market data.
Entered
Supplies stored pip size, base/quote currencies and reference contract quantity.
The entered reference from which both distances are measured.
Below entry for a buy; above entry for a sell.
Above entry for a buy; below entry for a sell.
Multiplied by the chosen lot-type factor and stored contract quantity.
Verify the broker’s actual contract and volume-step specification.
Determines the unit used for theoretical stop and target values.
Adds arithmetic percentage and after-scenario balances without judging suitability.
Converts the entered balance into a monetary loss budget. The percentage is not a recommendation.
Required when the account currency is neither side of the selected instrument.
Scenario map
Derived from pricing, P&L and reward-risk models 1.0.0.
Derived
Complete the required scenario inputsEnter entry, stop, target, position size and any conversion rate shown.
Reward-to-risk multiple—Entered price geometry only; no probability or trade-quality rating.
Stop distance—
Target distance—
Theoretical breakeven—
Position quantity—
Standard-lot equivalent—
Full-stop scenario—
Full-target scenario—
Selected loss budgetNot used
The position size was entered directly; no risk percentage was used to derive it.
Balance after full stop——
Balance after full target——
Target—Entered upper level
Reward distance—
Entry—Entered reference level
Risk distance—
Stop—Entered lower level
Risk distanceReward distance
Conversion context appears here.
Every amount assumes the full entered position closes exactly at the entered stop or target. Costs, partial fills, gaps, slippage, financing and missed fills are excluded.
Need broker volume-step rounding?Apply minimum, maximum and step constraints to a mathematical position size.
Share these display settingsCopies only approved selections. It never includes entered OHLC, prices, rates, balances, risk amounts, account details, source URLs, dates or uploaded content.
How the risk management calculator works
The page composes the same versioned models used by the Position Size, Risk/Reward, Profit & Loss and Pip Value calculators. The chart is a proportional map of your entries, not generated price history.
Worked EUR/USD exampleA 0.50 standard-lot buy at 1.0850 with stop 1.0800 and target 1.0950 has a 50-pip stop distance and 100-pip target distance. At 50,000 EUR units, the theoretical full-stop result is -USD 250 and full-target result is +USD 500 before costs. The reward-to-risk multiple is 1 : 2.00.
What this forex risk management calculator covers
Risk management for one planned trade starts with a defined entry, stop and target. In risk-percentage mode, this page converts the selected account percentage into a monetary budget and derives a standard-lot quantity whose theoretical full-stop value matches that budget before costs. In entered-lots mode, it measures the stop exposure of the quantity you provide.
The entered vertical order of target, entry and stop for the chosen direction.
Market candles, volatility, likelihood, time-to-level or future price path.
Distance zones
The relative entry-to-stop and entry-to-target price distances.
Whether either level is technically appropriate or likely to be reached.
Account impact
Arithmetic before-cost balances if the full position closes at the entered price.
Guaranteed execution, maximum possible loss, margin call behavior or suitability.
Assumptions and limits
All prices, position size, account balance and cross-currency rates are entered by the user. There is no market-data feed.
Stored pip sizes and contract quantities are conventional references; verify the broker’s symbol specification and apply its volume step separately.
Risk-percentage mode returns a mathematical standard-lot quantity and does not apply a broker minimum, maximum or volume step.
When the account currency equals the instrument base currency, stop and target outcomes use their respective scenario prices for conversion.
Spread, commission, slippage, financing, gaps, partial exits, early exits and missed fills are excluded.
A stop price is not a guaranteed execution price. General execution education is available in Investor.gov’s stop-order bulletin; forex and broker terms differ.
No amount, percentage, ratio or visual state is classified as safe, dangerous, acceptable or ready to trade.
Evidence guide
Trade-risk scenario methodology
The page validates the directional order of entry, stop and target, then calculates price distance, position units and theoretical full-position P/L at the exact entered levels. reward-to-risk multiple = target distance ÷ stop distance.
Quote-currency P/L is converted using the explicit scenario rule shown by the tool. The visual map contains only user-entered levels; it is not price history.
Worked example
For a 0.50 standard-lot EUR/USD buy at 1.0850 with a 1.0800 stop and 1.0950 target, the stop is 50 pips and the target is 100 pips. At 50,000 EUR units in a USD account, the full-stop scenario is −250 USD and the full-target scenario is +500 USD before costs.
The entered reward-to-risk multiple is 100 ÷ 50 = 2.00.
How to interpret the result
A 2.00 multiple describes the spacing of the entered target and stop. It does not say the target is twice as likely, that the trade has positive expectancy, or that either order will fill at the entered price.
Assumptions and limits
The model has no live price, spread, volatility, probability or strategy-performance input.
Contract quantities and pip sizes are reference metadata and must be checked against the broker’s exact symbol.
Commission, spread, financing, slippage, gaps, partial fills, missed fills and stop-trigger rules are excluded.
No output is a safe-risk threshold, suitability assessment or trade recommendation.
The visualizer divides the entry-to-target price distance by the entry-to-stop price distance after enforcing the selected buy or sell order. It describes the entered geometry and does not estimate the probability of either outcome.
No. It contains only the entry, stop and target you entered. The former generated candlestick background was removed because illustrative random candles could be mistaken for market evidence.
No. They are theoretical full-position results at the exact entered prices before costs. Actual fills can differ because of spread, slippage, gaps, broker trigger rules, partial fills or missed execution.
If the account currency is the quote currency, no conversion is needed. If it is the base currency, each quote result is divided by that scenario’s stop or target price. Otherwise, the calculator requires an account-currency-per-quote-currency rate you enter.
It is optional when you enter lots directly because position and scenario monetary values can be calculated without it. It becomes required in risk-percentage mode so the selected percentage can be converted into a monetary loss budget.
No. The former random simulation used a user-selected win rate without a validated strategy sample and could look like a forecast. The current tool does not estimate outcome probability or expected performance.
No. Moving a target farther away increases the arithmetic multiple but can change how often that target is reached. The visualizer has no market-probability, strategy-quality or suitability model.
No. The current visualizer does not use browser storage and has no readiness checklist. Copy the scenario if you need a local record.
Risk and affiliate disclosure: Leveraged forex and CFD trading can result in substantial losses. These are affiliate links, so ForexMT4Indicators.com may receive compensation if you register or trade through them, at no additional cost to you. Availability and terms vary by jurisdiction and broker entity.
Disclaimer: The results from this tool are estimates for educational and informational purposes only and may differ from your broker's figures. This is not financial or investment advice. Trading forex and CFDs carries a high level of risk and can result in the loss of all your capital. Always verify calculations with your broker and trade within your risk tolerance.
