Babypips position size tutorial

Beginner Questions
1

Hi
I was just reading about position size’s in babypips school.
And they were giving an example and was calculating what position size to take, and said that 2,500 units of EUR/USD was the position size.

How would you convert 2,500 units to position size?

As i take it you have to convert it to something? As 2,500 position size is a bit big?

2

1 nano-lot = 100 units of currency

1 micro-lot = 1,000 units of currency

1 mini-lot = 10,000 units of currency

1 standard lot = 100,000 units of currency

2,500 units of base currency means: 25 nano-lots, or 2.5 micro-lots, or 0.25 mini-lots, or 0.025 standard lots.

On most trading platforms, you are not able to trade in fractions of a lot.

So, for instance, if you have a MICRO ACCOUNT, in which the minimum position size is 1 micro-lot (1,000 units of currency), you will have to trade in INCREMENTS of 1,000 units. You can trade 2,000 units (2 micro-lots), or 3,000 units (3 micro-lots), but not 2,500 units (2½ micro-lots).

If you calculate an allowable position size of 2,500 units of currency, and have to choose between 2,000 units or 3,000 units, go with the smaller position size.

Some trading platforms (Oanda, for instance) let you trade in units, rather than lots. On that type of platform, you could open a 2,500-unit position.

3

Thanks for your help. I understand now

4

actually with ibfx i sometimes catch myself trading 1500 lot size… or in other words 15 nano lots… Owanda and ibfx are the only two that allow you to really dial in your lot size. Owanda lets you do any size… so, pick your poison. I think Owanda which is a Canadian company I believe might check on that.

cheers!,

fi

5

Hi Clint,
As you explained, i just want to clear a little doubt that while using MT4 which express lots in standard size , if i want to trade in 50,000 units ,so i should type 0.5 in volume . Right?? and can i take this because i am not getting an option to select from the given list in MT4.

As you Mention
1 nano-lot = 100 units of currency

1 micro-lot = 1,000 units of currency

1 mini-lot = 10,000 units of currency

1 standard lot = 100,000 units of currency