## I have no idea. (By the way, it’s mini lots, not micro lots.)

The paragraph you quoted makes no sense to me. It says,

"Your 1R is $795, meaning you should trade 10.65 mini lots, or $106,500."

This is just plain stupid.

$795 is your risk amount (in this example), and risk amount does not determine position size.

Position size is determined by (1) account currency, (2) account balance, (3) risk percentage,

(4) stop-loss in pips, and (5) the currency pair you are trading.

The correct position size for the example you quoted is **15.9 mini lots** (not 10.65 mini lots, as the book said).

Here is the answer, as determined by the Babypips Position Size Calculator –

Here’s another problem with the book you are reading –

After the book determined (incorrectly) that the position size should be 10.65 mini lots, it went on to incorrectly state that a position size of 10.65 mini lots = $106,500. Wrong, wrong, wrong, because the pair being traded is **AUD/USD**.

**10.65 mini lots of AUD/USD is worth $92,655** based on the AUD/USD price used in the example, **not $106,500** as stated in the book.

(10.65 mini lots) x (10,000 AUD / mini lot) x (0.87 USD / AUD) = $92,655

But, that’s using the **incorrect 10.65 mini lot figure** from the book.

Let’s use the correct position size, 15.9 mini lots, to determine how much it is worth in dollars –

**(15.9 mini lots) x (10,000 AUD / mini lot) x (0.87 USD / AUD) = $138,330.**

Throw that book away, and begin studying the Babypips School of Pipsology.