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lot size formula for cfd and forex based on risk percentage

Quantitative Finance Asked on December 2, 2021

I have a question regarding the calculation of the lot size for cfd and forex instruments when we have a risk amount as a percentage of the balance.

So how to compute the lot size to trade knowing the stop loss value and the entry point value for a buy trade in order to match the risk amount when the stop loss is reached?

Thanks in advance for your answer!

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