Confused with Lots , pips and mt4 volume

Beginner Questions
1

Hello Everyone,

I am confused about the trading sizes.

I see brokers that offer standard lot accounts, mini lots etc.

And then there is mt4 where you select the size after you have chosen a broker and start trading.

and I am confused how I calculate the size I need to be comfortable with. I googled it and I have understood in some point about lot sizes but then there is mt4 sizes. too confusing.

thank you all.

2

How is it possible that you don’t understand position sizes?

Almost two years ago, YOU POSTED that you had been trading for 1½ years.

Now you tell us you don’t know how to determine lot-size?

I have no idea what you’ve been doing for almost 3½ years, but it wasn’t “trading”.

2 Likes
3

Hello Clint,

I have been trading based on experience with the demo account .

With this broker I have been placing orders with “0.5” lots on mt4.

This way my risk was 20€-25€.

I was ok with it but now I want to understand how exactly it works.

=)

4

I can’t comment on the positions you have entered previously, because you have not provided the required information.

Position size is determined by these inputs:

  • Account currency – EUR is implied in your post
  • Account balance
  • Risk percentage – the percentage of your account that you are willing to risk
  • Stop loss in pips
  • Currency pair being traded — call it XXX/YYY
  • Current price of EUR/YYY – assuming EUR is your account currency

(1) If you enter those inputs into the Position Size Calculator, your position size will be computed for you in four equivalent formats:

  • individual units of currency
  • standard lots (or fractions of a standard lot)
  • mini-lots (or fractions of a mini-lot)
  • micro-lots (or fractions of a micro-lot)

(2) On the other hand, if you want to know how the Position Size Calculator determines those results,
I can walk you through it. But, before I spend time doing that, I would like to know whether you have studied the lessons in the School of Pipsology.

Specifically, have you studied this lesson – Forex Position Sizing - BabyPips.com
and the three lessons which follow that one?