I was wondering if somebody could give me an example of how to position size your account using leverage of 3:1.For example, if I have an account of $1000 and I only want to risk 2% of my account and I want to be leveraged at 3:1. i also have a trade that requires a stop loss of 80 pips. How do I calculate the position size in relation the leverage? I hope I am making sense!!! THANK YOU IN ADVANCE
Go into your demo trading platform and create an entry order and enter the stop loss. If you are using a good trading platform, it will tell you what your $ risk is given your lot size and stop. On $1,000, 2% risk would be $20. Adjust your lot size until your $ risk is below $20.
That’s it.
Take a lot of trades in your demo account, that is the best way to get comfortable with how it works. Hope that helps!