Quote:
Originally Posted by artieboy
OK heres my question, obviously the number of lots to trade depends on the individual. But lets say i go with a 2% max loss per trade. My stop loss each time will be 100 pips. Now lets say i fund my account with $10000.
OK at 2% my max loss would be $200. $200/100 pips would be 2.
From this i would trade 2 minilots or 20,000.......Am i correct?
This would work out to 2:1 leverage......
Just curious since i see a lot ofpeople using 50 to 100:1 leverage
a bit puzzled....
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The leverage that traders are talking about is for their trade size,
ie 20 000 units of EUR/JPY = Trade value of $30 000 so when this
is leveraged it will be (@50:1) approx $600, (@20:1) approx $1500.
This is the amount of deposit (or margin) required to trade @ $2/pip.
So when you lose your 100 pips, the deposit (margin) is returned to your
account less the $200.