Hello fellas,
made it through first parts of the School.
I got one question i can’t figure out: position size.
Figure, i got an Euro Account of 500€. For an easy example let’s say i want to put 50% of my roll into a trade with a 100 leverage on my account on EUR/USD. How do i calculate?
How does the calculation change, if i want to put my roll on GBP/USD?
What’s the position size in Lots/Units?
Thanks!
All you need to look at is 50% of you $500 account, which is $250
So your total trade risk is equal to $250
Your actual lot size will depend on how many pips your risking in your stop loss
if you choose 100 pip stop loss>>>>> $250/100=$2.50 per pip = 0.25lots
if you choose 50 pip stop loss >>>>> $250/50= $5.00 per pip = 0.5lots
1 standard lot is equal to $10.00 per pip in USD currency pairs, such as GBP/USD and EUR/USD to name the most common.
The calculation does not change providing you are trading a USD currency pair.
If you trading a non USD currency pair then you will have to do some research on what 1 standard Lot is equal too.
Also, I know your question was an example, but 50% risk lol
No more than 5% as an expierenced trader
No more than 3% as a total newbie
Excellent, dont go live before u finish the school and try demo for at least 3 months. After that when u go live the best recommendation for positioning the size of ur trade is to determine the amount logically that u need to put ur stop loss lets say you need to put ur SL at 50 pips (depends on the nearest support / resistance, fib level or pivot point.) the next step is to look into your equity or the balance you said it is 500 euros, you want to limit your loss to say 10% (your account is really small) thats 50 euros maximum loss you are welling to loose divided by the 50 pips this means 1 eur per pip. The position size that will give you this proportion is 10000x1.2800 = 12800 usd
Now some brokers will not allow this size you go for the nearest which is 10000 usd this will be one usd per pip.
Hope this clarifies.
Yes thats a good advice if you risk 50% you will probably not last in the market for tomorrow. We want to see u here again 
no more than 2% and dint go live before some serious work minths on demo i learned my lesson the hard way i went directly live and lost a lot now am through the school and will not go live again befor i have at least 6 months consecutive profitable months on demo. Listen to the classes “Demo your way to success” otherwise send the money to some charity better than giving them to some shark overthere. Please please for ur own benifet abide to this advice.
Ok thanks for the answers.
I was just confused because when i bought eur/usd, and gbp/usd with same lotsizes, i got different marginlevels from my broker at the beginning? how could that be.
Ok, to clarify my question:
I have a 100 margin and 500$. How do i calculate the Position size so that i buy a position with exactly all 500$? (or 1%, or whatever)?
The margins are different because the currency exchange rates are different.
1.0 sterling = +/-1.56 USD, and 1.00 euro is +/-1.27 USD. So buying a mini lot (leveraged at 100:1) of 10k pounds would cost you 157.00 in USD margin, while buying a mini lot of euro would be $127.00 or so.
Okay, so i know my approach is unorthodox but just to clarify:
If i got an euro account, i wanna start my trade with 50% margin on EUR/USD, that is easy: just account/2 * 100 (100 leverage) = positionsize in units.
Then, i want to start with 50% margin on GBP/USD with an euro acc: say i got 1000€, i multiply by EUR/GBP rate (1000*0.82913) = 829gbp, i divide that by two, = 415gbp * 100 = my lotsize in GBP/USD so i start with 50% margin.
should be correct?
Easiest way I have found is that brokers usually show you how much money you will lose given your current stop loss before you place a trade. This can be found on the order entry screen after you have entered your stop loss and lot size.
So, if you have $500 and want to risk 1%, then you need to keep your risk under $5. If your $ risk is over $5, then reduce your lot size until it is.
No need for rocket science calculations. 
P.S. - You shouldn’t be risking more than 1% per trade, especially when starting out. If you trade with Oanda or another broker that allows nano lots, then you can get into almost any trade with $500 and still only risk 1%.
Yeah, that’s right.
As others have suggested, however, this is generally not the best way to determine position size.