Confused on how to close a forex spot position

Beginner Questions
1

Hi everyone,
A beginner question about closing a paper traded forex position AUD.USD.
My main currency I have is AUD.
Say I sell AUD.USD $1000 AU @ 0.6666 for $666.6 USD.
I put a buy stop to protect my position @ 0.67 and suppose that order is triggered.
Would the buy stop automatically use the $666.6 USD to close the position (so I get back $994.9 AUD)?
Because technically I would be ‘short’ $1000 AUD, and to close the entirety of that I would need $670 USD (however I only have $666.7 USD from the trade).

I have a feeling that because I am trading AUD.USD purely for speculative purposes - then the Mini or Micro futures contract would suit me better - as then I would be just trading the contract in AUD.

Thanks for any help.

2

I’m not able to help directly (I’m a n00b myself) except that wow, that’s a lot that’s about 33k lots (I only trade micro lots) and would hold 66% of your account. Idk if I’m doing my math right but wouldn’t you also be risking about 10% of your account with that one trade?

3

Cheers for reply but the initial position was just for a spot trade.
Im a tad confused on how to set up a bracket order for a spot trade. So if I open a position on AUD.USD and sell 1000 AUD - how would the bracket order be setup (particularly the SL). If im risking $50 on the trade then the SL would be to buy back $950 AUD at whatever my SL would be…

And yes I understand the leverage involved with micro and min lots so I would have to adjust the position size accordingly.
Thx

4

Hello @cs_rlewis

The first issue is: which trading terminal are you using?

If possible, can you post a screenshot of your terminal here?

After I know which terminal you are using, we can move forward.

Also since I will probably be sleeping in a few moments, if someone else would like to sort it out once he has posted the terminal that is perfectly fine with me.

Regards.

6

Thanks for the replies. As I live in Australia my main currency is AUD. The broker I use is interactive brokers.
Ill post a screenshot of my account terminal soon but I know for AUD.USD spot pair I would be selling short my AUD, hoping to buy it back for a profit.