Hello, easy question here:
How can I calculate the number of lots I can buy/sell, given that I have $3000USD in my account(or any other number for that matter) when I want to make a trade with a given currency pair, say GBP/JPY? Any help is appreciated. Thank you.
Everyone has their own technique of maintaining the account.
Sorry. I meant what is the maximum number of lots I can buy with 3000USD. How can I calculate it for various currency pairs?
Theoretically:
3 standard lots at 1:100 leverage
30 mini lots at 1:100 leverage and so on.
The number of lots is a factor of your margin capital and the leverage you intend to apply.
You could just use your brokers forex calculator to get the answer, but whatever the answer is I would not recommend that you max it out unless you are more into fx gambling. Having said that, there is no right or wrong approach so as long as whatever you pick works for you, keep doing it.
Not that I want to use all the lots I can buy in single trades. I just want to know what fraction of USD currency is a given price of a lot pair. TheLastBear, where is the brokers forex calculator?
It depends on the account, margin and the leverage…
Just remember, brokers will issue a stop out once the recommended margin is no longer available to maintain open positions… check with your broker on the stop out level…
EDIT to add: Just saw LB’s post, he’s spot on. Check the broker’s platform - most have one or google for one…
That depends on the broker you are using, but most offer it on their website.
Just a note, I would think twice before trading with a broker who does not host a free app or calculator to calculate positions…but that’s just me…