I joined FXCM practice account, and learn a lot from that account.
Then i feel that i can trade real account.
I joined MINI account. And on the first day i got $500 (with $300 account).
And next day i lost all of $500…
Then i tried again, and joined MINI account again. At that time i got $400, and in next 2 days i lost $400…
And now i tried again … And joined MINI account. At this time i can’t more a single PIPE. If i buy, suddenly currency decreases. If i sell, currency increases…
I don’t know what is happening with me. Now i lost my 3rd chance also. I also got TRADING LEARNING session in FXCM.
dont get me wrong but if you dont know what does micro-account mean, it means you shouldnt go live at all, did you go through the school material over here??
btw micro account means the lot size is $1000
mini account means the lot size is $10,000
standard account means the lot size $100,000
2.minutes has it right, you defently need to goto babypips school. You also sound like you have no money managent plan. Goto the post “lets do an experiment part two” to see what money management can do for you.
I find oanda too confusing and I forgot why I didn’t like fxsoultions. Try strategybuilderfx.com they use meta trader 4 and have a micro account. And no fxcm does not do micro accounts
btw micro account means the lot size is $1000
mini account means the lot size is $10,000
standard account means the lot size $100,000
I have a question related to the above. I am currently demo trading account at SpotTrader (using Meta Trader 4) and when I place an order I can specify the lot size. So if I have, say, MINI account and the lot size I specify is 0.1 does it mean that I am buying (or selling) $1000 worth of currency (0.1 * $10000) ?
Do I understand it correctly?
Thanks for your response 2minutes.
I have another question. I was rereading the info in baby pips school and either I am confused or there is an error. Here is an example given in preschool (lesson: How You Make Money Trading Forex):
You open 1 lot ($100,000) for buying the Pound with a 1% margin at the price of 1.5000 and wait for the exchange rate to climb. This means you now control $100,000 worth of British Pound with $1,000. Your predictions come true and you decide to sell.
This is all fine, but then they summarise this transaction in a table and the table says
You buy 100,000 pounds at the GBP/USD exchange rate of 1.5000 +100,000 (pounds) -$150,000 $1,000(my money used)
Here is where I am confused: I think that if I open 1 lot ($100,000) then I can buy only amount of pounds that are worth $100,000, i.e. in case of 1.5000 exchange rate it would be about 66 666 pounds ($100,000/1.5).
Or does opening 1 lot mean that I buy 100,000 of the base currency?
I am assuming that my account is in the US with $ as underlying currency.
How did you get 1 pip = $1 for EUR/USD. Doesn’t it depend on the exchange rate too? That’s what they say in pipschool and it makes sense to me:
EUR/USD:
1.2200
.0001 divided by exchange rate = pip value
so
.0001 / 1.2200 = EUR 0.00008196
but we need to get back to US dollars so we add another calculation which is
EUR x Exchange rate
So
0.00008196 x 1.2200 = 0.00009999
When rounded up it would be 0.0001
Anyway to calculate your profit you need to know the pip value and how big your position is, so coming back to my original question, it makes a difference whether you bought 100,000 pounds or 66,666 pounds. That’s were I get confused about lot size. I think that table in pipschool that I was talking about is wrong or it has nothing to do with the example they gave just before it.
If 1 lot is $100,000 and I am buying GBP then I would buy 66,666 pounds at exchange rate 1.5.
Check out that table in “How You Make Money Trading Forex” lesson just below “I don’t have enough money to buy $10,000 euros. Can I still trade?” question and following example.
Sorry to dwell on this but if I don’t understand math behind it it affects my confidence.
If 1% margin is required for 100,000 lot then you just multiply 1% into size of the lot i.e. 100k. that would require 1,000 for the margin.
Pip value would also reflect amount of leverage you are using 100 leverage for a 100k lot would be 10 dollars a pip. 10 leverage would be 1 dollar a pip. I think your math is fine but i think your forgeting to multiply by the exchange rate to get it back into dollars. If you don’t multiply it back into dollars then the pip value fluacates.
I always do this with xxx/usd pairs
((Pip decimal / exchange rate) * the size of the lot) * the exchange rate
last step is to get it back into the base currency of dollars.
Hope that helps
Kangi
Dont worry if this is confusing to you. I am still confused by it. So what I do is one of several things.
most brokers have a place on their website that will tell you how much 1 pip is worth. On a standard, mini and micro (if they offer that) account. This is vary easy if USD/JPY is worth $0.85 on a mini account and I have $500 in my account. On any given trade I am willing to lose only 5%. So %5*500=$25.00 that is the amount I am willing to lose on a single trade. That the $25.00/ $0.85 (the amount of 1 pip)= 29.34343451556 so I round it up to 30pips. I will accept a 30 pip loss on a $500 mini account. So now I just sit back and wait until I find a pair that I think I can win 45 pips on.
If I think that the pair will be making a big move (over a few hundred pips) then I just get in the trade. Look at how much I am down and / it by the spread. ei. USD/JPY the spread is 2 pips when I open a trade I look at the Profit coloum and see I am down 1.70 so 1.70/2=$0.85 then I just find out how many pips I can loss befor I reach my 5% s/l
