Hello,
What do you consider is a correct lot size to be used in MT4?
I have noticed some people use 0.01 on accounts of 100USD while others use it for 1000USD.
I know this community is very knowledgeable, that is why I wanted to ask.
Thanks,
I would personally risk 1% and a maximum of 2% on any trade which is not more then 0.01 lot size.
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Actually, I do not think that there is a correct lot size. It is how money you are ready to lose and the percentage of risk level you are ready to set.
In addition, it depends also on the symbol you would like to trade.
After knowing how much risk you are ready to take and by how many pips, you can use BP’s position size calculator to determine the correct lot size.
Let’s say both persons used a 100 pips SL and traded EURUSD.
The first person would be risking 10% while the second 1%, the calculator would help you risk a correct desired %.
Take note that some brokers have a minimum lot size of 0.01 so risking 1% in $100 account becomes difficult.
Here’s why: A 0.01 lot size for EURUSD for example is $0.10 per pip which after only 10pips makes 1% of $100. This means to risk 1% of $100 You must have a 10 pips SL which is too too too TIGHT. I guess that is why with a $100 account you have to risk way more which would lead to blowing your account way faster. Please don’t start with $100
Hope I didn’t end up confusing you with this last part.
Cheers!
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Thank you!
This was very informative!!
I agreed that 100USD is very risk to trade forex.Because it’s very hard to predict market in short period time and drawdown only 10 pips stoploss. By the way, there is still way to go in Micro port. Please check on the broker that provide this sizing. 0.01 Lot same as 1.00 Lot in Micro port.
Lot size is directly related to your account equity and risk management.
I personally use.1 and will risk no more than 1% of my account equity but usually two trades on .5% of my account equity.