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I'm really trying to understand how much profit and loss I would make when placing the LONG or SHORT position tool in TradingView.

I understand that with a $1000 account size, 0.01 lots == $10 and also 1% Risk == $10, that at 1.5 the profit would be 0.00146.

Using this page I am still left with these questions:

  1. Why is the quantity 1030927 if the calculation is Qty=Risk/(Entry price-Stop price)?
  2. What is the tick? Is this basically a pip?
  3. Why is the profit target $1015.05? How is this calculated?

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1 Answer 1

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+100

Using the same page:

Why is the quantity 1030927 if the calculation is Qty=Risk/(Entry price-Stop price)?

quantity = 1% * $1,000 * (0.67834 - 0.67737) / 0.01

What is the tick? Is this basically a pip?

"Tick = A tick is a measure of the minimum upward or downward movement in price," in this case 0.00001

Why is the profit target $1015.05? How is this calculated?

Based on the top info panel screenshot, it's "the hypothetical account balance after the take profit target is achieved", i.e. $1000 + (1,030,927 * 0.00146 * 0.01)

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  • So, pip is not tick?
    – Matt W
    Sep 19, 2022 at 5:43
  • In forex, a pip is usually the 4th decimal. A tick is the smallest possible price increment (on this platform). Sometimes they're the same but it doesn't have to be that way. Hopefully this helps: babypips.com/learn/forex/pips-and-pipettes
    – 0xFEE1DEAD
    Sep 19, 2022 at 10:52

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