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FREE WORKED TRADE CALCULATOR
See exactly where the R comes from.
Enter a long or short example and follow the arithmetic from price distance to pips, cash risk and net R. Add an exit to compare the planned trade with what actually happened.
WORKED R EXAMPLE
Build the trade from entry to exit.
Change any number and the arithmetic updates. The examples are fictional and teach price geometry, not what to trade.
Calculation updated. Stop distance 25 pips. Planned gross result 2 R. Net result at the target +1.86R. Realised net result at the exit +1.29R.
LONG EXAMPLE
1 pip = 0.0001Higher prices are favourable.
STOP1.0815ENTRY1.0840EXIT1.0875TARGET1.0890
Adverse side → favourable side
SHOW THE WORKING
How each result was built
- STOP PIPS
(1.0840 - 1.0815) / 0.0001 = 25 pips - TARGET PIPS
(1.0890 - 1.0840) / 0.0001 = 50 pips - CASH RISK BUDGET
10,000 x 1% = 100 - COST-ADJUSTED RISK DENOMINATOR
25 + 1.2 = 26.2 pips - PLANNED GROSS R
50 / 25 = 2R - NET R AT TARGET
(50 - 1.2) / 26.2 = +1.86R - REALISED NET R
(1.0875 - 1.0840) / 0.0001 = 35 pips; (35 - 1.2) / 26.2 = +1.29R
What the arithmetic assumes
- The entered cost is paid once per completed trade and can be represented in pips.
- A stop fill occurs at the stated price; slippage, gaps, swap and changing spreads are excluded.
- Net R uses stop pips plus cost pips as its all-in risk denominator, so an exit at the stated stop equals -1R.
- The cash figure is a risk budget, not a lot-size instruction or forecast.