Risk Management Indicator

Developer: FXCM

Traders wishing to limit the risk of their positions will set stop orders to close out losing trades.  Many times a trader will wish to set the stop level at a specific value so that only a certain percentage of his overall account balance is risked with any single trade.  The trader simply needs to know what percentage they are comfortable with, what level to set their stop, and what trade size to use.

The Risk Management Indicator calculates this for you.

The Risk Management Indicator will calculate out the appropriate trade size, stop level based on a trader’s risk parameters.  Those trade details are displayed directly on the charts.  The trader can then take that information and use it to open a position specific to their risk preferences at that moment.

This specific indicator is most effective when used as described in the article “The ABC’s of Risk Management” by James Stanley, Trading Instructor.

  • Risk Percent: Input a value as a percentage of account equity. The Output will display a hypothetical trade size.
  • Limit: Input a value in pips. The Output will display a hypothetical profit for this trade, should the market price reach the inputted pip value.
  • Stop: Input a value in pips. The Output will display a hypothetical loss for this trade, should the market price reach the inputted pip value.
  • Position: Move the box to a new position so that it doesn’t interfere with other items on your chart
Risk Disclaimer

The application displayed on this page does not take in to consideration your individual personal circumstances and trading objectives. Therefore it should not be considered as a personal recommendation or investment advice. Past performance is not indicative of future results.

There is no guarantee that the systems, trading techniques, trading methods, and/or indicators will result in profits or not result in losses.


This Indicator is only compatible with FXCM Trading Station Desktop software. Additionally, an FXCM account is required (including free FXCM demo accounts).