Answered

Explore Westonci.ca, the premier Q&A site that helps you find precise answers to your questions, no matter the topic. Experience the convenience of getting reliable answers to your questions from a vast network of knowledgeable experts. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

Assume your entry price for both long and short positions is $50 and you would like to set the reward-risk ratio (RRR) at 1.2. Calculate the profit and loss exit points for both long and short positions.

Sagot :

abiolataiwo2015

Answer:

Long Position

Profit exit point: sell limit= 8.33

Loss exit point= 41.66

Short Position

Lost exit point: buy stop= 58

Profit exit point:buy limit=40

Explanation:

Calculation to determine the profit and loss exit points for both long and short positions.

LONG POSITION profit and loss exit points

First step is to calculate the Profit exit point: sell limit

Profit exit point: sell limit=( 50x10% )/1.2

Profit exit point: sell limit=$10/1.2

Profit exit point: sell limit= 8.33

Now let calculate the Loss exit point

Loss exit point=50-8.33

Loss exit point= 41.66

SHORT POSITION profit and loss exit points

Lost exit point: buy stop=20%/x=1.2

Lost exit point: buy stop=20%/2

Lost exit point: buy stop=1.6

Lost exit point: buy stop= 50+(50x1.6)

Lost exit point: buy stop= 58

Now let calculate the Profit exit point:buy limit:

Profit exit point:buy limit=50-(50*.20)

Profit exit point:buy limit=40

Visit us again for up-to-date and reliable answers. We're always ready to assist you with your informational needs. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.