Can someone help me with lot size calculation in MT4?

Beginner Questions
1

Okay so I’m on a demo account with 50k capital, leverage 1:50

I bought 16 lots EURUSD @ 1.3000 and it used 48,000, leaving me with 2k unused margin.

How they did calculate that?
Say I wanted to use only 48,000
I thought it was just 48,000*leverage(50)/price(1.3000 * lotsize 100,000) = 18.46

Where did the other 2.46 lot worth of money go?

2

Maybe the order didn’t completely fill at 1.3?

3

Well, I mean it says Volume : 16, so even if there was deviation… there shouldn’t be such a big unaccounted for gap righT?

4

Honestly I am a noob and have no other explanation. Lol

5

hah its ok.

anyone?

6

MARGIN REQ=CURRENT PRICE x LOT(VALUE) x 1/LEVERAGE
MR=1.31600 000 1/50 =41600 $
That means you’d have 8400$ free margin and 41600$ used margin if the account is in USD.If it’s in euro:
MR=1600 000* 1/50 =32000 €
…

So with 16 lot you control 1,6m USD but risk and lose 41600$ or 32000 € if you hit a margin call (preferably you should have stop loss)

@FXNoop
EDIT:sorry for previous wrong calculation :smiley:

7

I thought the lot would be 1,600,000 (16*100,000)

8

Ok so sorry for wrong calculation,now it’s correct.But also take in consideration the price on the chart may not be the price your broker offers you.He might take the spread from the ask price so that may be different…

9

Mm I see your math and it is right, but what I’m asking is that what you wrote (41,600 used, 8400 unused margin) is SUPPOSED to be what I see on the screen.

Yet, 16 volume puts me at 48,000 used, and 2000 unused… which is my question of where 6000 went?

10

Have you tried asking your broker? Most have live chat and if you get the ticket number they can take a look.

Another question that occurs though, is why are you taking out such a large position in the first place?

11

Ok i have some questions:

  1. What base account currency do you have? I guess USD right?
  2. Is your broker a market maker,what is your broker name? He might be a bucket shop (hope not,but it might happen -worst case scenario)
  3. If not a market maker then he might have variable spreads and pretty high ones if you lose that much ~6k $
  4. Do you have any kind of account manager /shared account ?
  5. Last option would be if you misplaced the order,maybe you didn’t see the digits clearly and put more lots or it was some kind of exotic order type (some brokers offer) which calculates differently position sizes
12

I think the best option is to ask your broker about a comprehensive information about this, since this thing could vary from broker to broker, though there are some general standards in some cases.