This has probably already been answered many time, if so I apologise
So I’ve recently started to use both the pip and position size calculator from babypips
On then position size Calculator once filled in it gives you 3 different lot sizes to use … standard,mini and micro … my question is do I just use the standard lot size if I’m using mt4 and not really laddering in (market execution)
And use the mini/micro amounts if I was ladddering in so to speak as they all add up to the same amount.
the standard, mini and micro is in reference to the lot size so like 0.01, 0.1 and 1,for example. if you check out broker account types they often have these three divisions of micro/mini, standard and vip, with the minimum lot size according to the account type.
yes i did all that … put my risk at 3% … then it shows you your position size for each type of lot (3) i was asking which one to use … think its standard tho. cheers pal
Maybe you position size calculator is diferent to mine.
The way I see it is that a micro account you pip size or lot size is about 10c to 15c per pip.
A mini account your pip size $1.00 to $1.50 per pip and on a standard account you pip size is $10 to $15 per pip so your lot size is important to the amount of margin you require to hold that trade and how much you are risking on a trade.
No sense trading a standard lot size if you account is $1000 your risk becomes far more than 3%.
okay so here is the calculation i did … im not using a huge account … so really need to know which one to use ? in my mt4 app … the options to trade are 0.01’s
Ok 0.01 is a micro account where you lot size on the GBP I believe is 15 cents a pip. I trade with FXCM and a micro account allows me to control $1000 of notion for a lot size of 0.15 per pip.
Personally I would give that position size calculator a big miss. It is not relevant. If you trade 2% of a $250 account on any one trade means you are risking $5.00. At 15 cents a pip that means that your stop loss can be as much as 33 pips on a single lot per trade. If you increase your position size to 2 lots then it reduces you stop loss to 16.5 pips.
The Position Size Calculator is telling you that you can trade up to 0.0339 standard lots without exceeding your predetermined risk percentage.
But, your platform probably will not let you enter all those digits.
Therefore, you have to choose whether to enter 0.03 standard lots (which is slightly less than the maximum allowed by your predetermined risk percentage), or 0.04 standard lots (which represents more risk than you initially planned to take).
Maybe you’re confused about the three ways the Position Size Calculator has shown the results (the three numbers you circled in blue in the image you posted).
Those numbers are simply three different ways of saying the same thing —
— like, $0.50, or 50 cents, or 5 dimes.
Thanks clint i think youve confimed what i was thinking … so if i wanted to open a position using those inputs i could trade 0.03 and not risk anymore than £7.50 on that trade? thanks for the help pal
