Since it will only trade 1 lot, it must now determine how much risk it is willing to take per trade. Disciplined forex traders always enter trades with stop losses in place and calculate their risk exposure in pip increments to determine whether the trade is feasible. By knowing how many pips the stop loss allows, it is possible to determine whether or not it will have enough room to trade the strategy using the preferred lot size. Below is a stop loss calculator that allows you to calculate the stop loss in percentage points (pips). To perform the calculation, we use the following information: the foreign exchange pair, the lot size, the percentage of margin to be risked per trade, the margin size, and the account currency. By following the preceding example, the maximum stop loss for a EURUSD trade with a 1 lot size and a margin risk of 2.5% would be 29 pips for each lot size. To determine the stop-loss size for the two other currency pairs, the GBPUSD and the USDJPY, the same procedure would need to be repeated.