Hi Guys, can someone help me about risk management and position sizing?

Hi guys I need your help. Im really confused about the position sizing and risk management. Im using OANDA demo account for 2 days now and i cant understand the risk and position sizing computation. For example if I have $1000 starting capital with 1:10 leverage and i want to risk 2% per trade how can i get the position desired? i got really confused especially with the number of units appearing in the account. Please someone help me Thankyou any comments will be very much appreciated Thanks :wink:

Hi ArrheniusLeyva

Firstly your leverage won’t be a factor you need to consider when trying to calculate your position size. If your starting balance of your demo account is $1000 - risking 2% of this would mean you are risking $20…

For the trade you would like to take, you then must work out the size of the SL (stop loss) you will want to use. Once you have these two bits of information, you then must adjust your lot size according to reflect your risk of 2%

BabyPips have an easy position size calculator for which you’ll find useful:
Position Size Calculator: Free Online Forex Position Sizing Calculator

If you enter all the information in there, the calculator will show you how many lots to buy/sell in order to meet your 2% requirement.

Happy Trading :57:

Thankyou :slight_smile: