Working Out An Account Size

Hello,

hi, i was using my account and at the top it showed i was using 57% margin and £40 a pip but my friends worked out my account size by seeing how many pips i was up and without me showing them my account size … what are the calculations to work that out?

Can you tell us what you were trading and what lot size you bought/sold

It was cable at 1.2348200 and £50 a pip buy and it was at 1.23572

I’ve found babypips section on position sizing very useful for the calculations for working out position sizing. It’s in the undergrad section.

If you follow the backward calculations based on a percentile of risk, you should be able to deduce account size? Or if you know the margin factor from your broker in your example

I’d be hoping at least a £20k account with that trade size of £50 a pip?

So 50 GBP a pip means that you have opened around 6.20 lots GBPUSD I guess. Usually in forex with position of 1.00 lot you get 10 currencies (JPY is exception) in the secondary currency of the pair, for example with GBSUSD you will get 10 USD for each pip if you have 1.00 lot, e.g. you will get 60 USD (roughly 50 GBP) per pip with position of 6.00 lots
You opened 6.00 lots (let’s stick to the rounded number) at 1.23572 and now important is what is the margin you are trading this pair. Let’s say you trade with 0,5% margin (1:200 leverage). Than we can calculate the margin you need to open your position:
Lot size * 100 000 * Opening Price * Margin% = 6.00 * 100 000 * 1.23572 * 1% = 7.414,32 USD
You said that 57% is used, so 7.414.32 = 57% * your margin -> your margin is 13.007,57 USD
The lot size was rounded so I guess your accounts size is about 13.500 USD?
It felt like a math test lol
Hope it was helpful :slight_smile: