Difference between pip and pipette

If it’s volume my broker deals with and not position size,does it mean that if my balance is $200 and I key in 1.00 as the volume,does it mean it’s only $1 that I will use for the trade or how is volume calculated with respect to the contract value?

I didn’t really get the calculation of how the lot size ur 0.03. A micro lot
0.01=10cents per pip.
I keyed in these values on the position size calculator and I got this:



How is the lot size 0.03 in your own calculation and not 3 as shown in the images attached?

For 1:100 the margin you used is 1% .what value did you use as Margin for 1:500 to get these values?

hehe
Yes there is an advantage to trading off MT-4 IT’S EASIER and more user friendly

Your broker doesn’t help you make transactions , YOU DO THAT
Deposits and withrawing are done through your online client area or whatever they call it
you do that stuff via the online interface
you trade off MT-4 or C-Trader whichever you prefer

HELL NO
1.00 Lot size = $10 PER PIP
Not $1 in the whole trade

Mate
$1,00
and
1.00
ARE NOT THE SAME THING

it’s like saying
$1.00
and
1.00 Kg
ARE NOT THE SAME THING

$1.00 (THIS IS A MEASURE OF CURRENCY)
1.00 LOTS (THIS IS A MEASURE OF LOT SIZE)

1.00 (1 STANDARD LOT) Means you are consuming or making $10 per pip
so… if the trade runs against you by 50 pips YOU WILL MAKE $500
IF IT GOES THE WRONG WAY… YOU LOSE $500

Not $1[quote=“Lexzykool317, post:14, topic:129608”]
if you put in $100 from your $1,000 in your account
you have $900 as free balance
now if you are risking 1% of your account , you can risk $9
and if you have a stop loss at 30 pips you are using 30 cents per pip
so YOU TRADE A LOT SIZE OF 0.03 LOTS… REMEMBER THAT… ok

I didn’t really get the calculation of how the lot size ur 0.03. A micro lot
0.01=10cents per pip.
I keyed in these values on the position size calculator and I got this:
[/quote]

ok
well let’s do it STEP BY STEP

did you understand this…

if not tell me

Now. did you understand this… that you are risking 1% of what is remaining
because 1% x 900 = 9

if not … tell me

Now. UNDERSTAND $9 IS THE TOTAL AMOUNT YOU HAVE TO PLAY WITH IN THAT TRADE
so…

it’s like this
$9 divided by 30 pips = 0.30 Meaning 30 cents Per pip

NOw, you convert that to lots and it’s 0.03 lots
because 0.01 lots = 10cents per pip
so 0.01 x 3 = 0.03 Lots or 30 cents per pip

[quote=“Lexzykool317, post:14, topic:129608”]
I keyed in these values on the position size calculator and I got this:

LOL

BECAUSE YOUR BROKER IS NOT TAKING INTO ACCOUNT THE MARGIN

LOOK…

THIS IS WHAT YOUR BROKER IS DOING
You entered
ACCOUNT CURRENCY = USD
ACCOUNT BALANCE = $900
RISK PERCENTAGE = 1%
STOP LOSS (PIPS) AS CHOSEN BY YOU = 30 PIPS
CURRENCY PAIR = EUR USD

so your broker does a stupid little calculation like this

risk percentage x Account Balance = Amount at Risk
so…
0.01 (1% ) x 900 = $9 USD

Now if you trade this, You are going to realize when you open a trade that THIS IS NOT TRUE
because they have not factored in NOMINAL MARGIN into the calculation

the way i do it is

Account Balance - Nomainal Margin = What you are really left with
then

Risk Percentage x What you are really left with = Amount at risk
see the difference

THEN WHEN YOU LOSE and you ask your broker
and FEEL FREE TO GO ON CHAT AND ASK THE BROKER WHY THEY HAVE NOT CALCULATED NOMINAL MARGIN
because a trade is not just made up of Risk Percentage
there is a Nominal Margin involved as well

so ASK THEM "WHY DOES THE CALCULATOR NOT FACTOR IN NOMINAL MARGIN"
see what they say

and you’ll find that you’ll get some BS excuse as to why it’s your responsibility to know this
and YOU’LL FIND YOU’LL GET THAT EXCUSE AFTER YOU LOSE YOUR MONEY.

No…
1% is not a Margin
Nomainal Margin is Measured in $$$

Can you explain how it’s easier and more user friendly please?
If you don’t have to make transactions through a broker,what is their role in forex trade? I thought some of the things to consider when choosing a broker is a broker that charges less on commission,pip spread etc. I thought of you trade on the platform of a broker that charges less,you will make more profit and pay less for charges.

If i do the trade off MT4 direct, how will the payment for charges attached to trades be charged and paid for?

Also, the plaform I have is the platform from a broker(alpari mt4).I downlaoded mt4 platform yesterday that is not attached to any broker but it was very similar to the alpari mt4 platform.I still saw these same features :

My main concern is the volume feature. I thought I will see position size but I did not.

Can you give me the link I can use to download the General mt4 platform that makes use of position size please?

You didn’t really get me.What shows in the VOLUME option on my mt4 platform is 1.00 and when I use my mobile mt4 app to check it, it shows as $1.00. I didn’t say $1,00.
So from these, if volume is what is used to trade and not position size,how do i determine my position size and does it mean it’s $1.00 I used for the trade (based on the use of volume to trade?)

You didn’t really get me.What shows in the VOLUME option on my mt4 platform is 1.00 and when I use my mobile mt4 app to check it, it shows as $1.00. I didn’t say $1,00.
So from these, if volume is what is used to trade and not position size,how do i determine my position size and does it mean it’s $1.00 I used for the trade (based on the use of volume to trade?)

I understood the calculation of how it is $9 I can risk.thanks

I understood how you got all these values in your calculation but when I calculated
$9 divided by 30 is 0.3 and not 0.30
Are they the same or did you use 0.30 because 1 decimal place can’t be used for the calculation?

Ok.but on the platform I use, when I log in and I don’t have any open trade,the only values that show are: balance,equity and free (or usable) margin.nominal margin doesn’t show.so how will i know what my nominal margin is?since my platform doesn’t make use of position size but volume?

From your own point of view you advice that someone should open an account when he has at least up to $1000 to be able to trade for large not sizes and use less of one’s money with a higher leverage
But If say someone doesn’t have up to that or someone doesn’t want to risk that much,can’t I say use $200 for example and open a micro account and limit my trade to a micro lot and use leverage to trade for the micro lot position ofn $1000,and not aim to trade for large positons like the standard lot of $100,000 which would be risking too much which such small amount?

Yes, of course you can, and in principle that would be a very sensible and good approach.

But there are two other things you need to know:-

  1. The purpose of trading with a $200 account isn’t to make money: it’s to gain experience. (Even if and when you get as far as joining the very tiny minority of forex traders who can make a steady 5% per month on their accounts, that’s still only going to be $10 per month, so it’s not exactly a money-making opportunity!)

  2. Depending on your trading style, $200 may not even really be enough to trade a micro-lot safely. (If you were trading EUR/USD with a 20-pip stop-loss, it would just about be ok, because your risk per trade would be 1% of your capital, but if trading with wider stop-losses than 20 pips, your risk would exceed that and $200 wouldn’t be quite enough.)

1 Like

as laughing charlie already said
yes you can, but you shouldn’t

i would also like to add
if you don’t have $1,000 AS A MINIMUM, you should not be trading forex to begin with.

I’m sensing A LOT OF CONFUSION here from you

let’s get one thing out of the way FIRST OF ALL

Let’s pick a few brokers out of a hat so to speak… ok
now you are with ALPARI…

NO MATE… THEY ARE NOT SMIILAR , they are IDENTICAL

you see
Alpari MT-4
Pepperstone MT-4
Oanda MT-4

are exactly the same as MT-4 (Raw)
the only difference is the RAW version from MT-4 comes unconfigured
the brokers then take it… they configure it and YOU DOWNLOAD IT from their website CONFIGURED
so you don’t have to do anything further

IT’S THE SAME PROGRAM MATE… ok[quote=“Lexzykool317, post:17, topic:129608”]
Can you explain how it’s easier and more user friendly please?
[/quote]

Sure…
well. firstly THIS IS MY OPINION of course
but a lot of people seem to agree

MT-4 is easy to use, Easy to place trades, its nice, it’s basic and it’s quick and not heavy on computer resources.
drawing lines and attaching indicators and experts is easy
backing up is easy
adding new indies and experts is easy
it’s easy all around

now your 2 choices will be MT-4 and C-Trader
Just like with a computer you are either a Windows Person or a Mac Person
well in trading you are either an MT-4 Person or a C-Trader person
now in computing we have Linux people

and in trading we also have Webtrader people, but the webtraders and mobile phone traders are not the majority

the majority are C-Trader and MT-4
Pick one

i think we need to be CLEAR ON THE WORD “TRANSACTION”
Now, by definition it means (Loosely) ANY TRANSACTION Any Exchange of good and services for cash

BUT. you have used it in the context of WITHDRAWING MONEY (which is also a transaction) but… i assumed you were saying
can you withdraw funds directly from the MT-4 Platform… NO YOU CAN’T
you need to go to your broker online and do it in the client area

what is the purpose of the broker
THEIR PURPOSE IS TO FACILITATE YOUR TRADE
their purpose is not really to provide a platform, but THEY DO IT ANYWAY

so i suppose
UNDERSTAND THAT the broker is there to mediate the trade on your behalf and take a commission
you can do all that within MT-4

you cannot withdraw or fund your account from MT-4 directly

NO…
if a broker charges commission and has a fixed spread of 3 pips for example
whether you trade on MT-4 or directly from the web interface THE FEES AND SPREADS ARE THE SAME

MT-4 IS MERELY AN INTERFACE PROGRAM

it’s like this ok
you have email with let’s say Telstra (Bigpond) or whoever your carrier is
and YOU USE A PROGRAM CALLED OUTLOOK

Now… Outlook is NOT YOUR EMAIL
Your email is held on the server of your provider

Your trades are held and executed on the server of your broker

Outlook merely is a program that talks to the ISP server to get your email

MT-4 is merely a program that talks to your brokers server and says “hey … put this trade down now… ok”
and the server does it

if you put a trade down to buy EUR USD and your computer shuts down
the trade is still running on the server regardless

however, if the server dies but your computer and MT-4 platform still work, Your trade is gone (in theory)
get it

Nothing will change
THE CHARGES ARE IDENTICAL
MT-4 IS GIVEN TO YOU FREE OF CHARGE

if a broker ever charges you for MT-4
Say Good by and give them the middle finger… simple as that

hehe
in MT-4 you use LOT SIZES
this is how the program is programmed up, you can’t change it
and there is no MT-4 program that will be different
they are all the same

are you sure you are using THE ORIGINAL MOBILE MT-4 App
because there are a lot of copycats

i have Mobile MT-4 Mine says LOTS so 1.00 not $1.00
you must have a different app

what do you think 0.3 Means ???

Mate, if we standardize it to CENTS
so instead of
$9 divided by 30
we say
900cents divided by 30 = 30cents right

so
0.30 is = to 30 cents
and obviously
0.3
and 0.30
and 0.300
and 0.300000000000000000000000000000
ARE EXACTLY THE SAME aside from how many decimal places you want to go to
but with money we use 2 decimal place
but it is understood that 0.3 cannot be 3 cents
Your calculator will round off 0.30 to 0.3 because it knows IT DOESN’T MATTER.
does that make sense

well that’s right
because when you have no trades on, YOU ARE NOT USING ANY PORTION OF NOMINAL MARGIN
hence it won’t show you the Nominal margin

THIS IS THE POINT…
YOU NEED TO WORK IT OUT BEFORE YOU PLACE THE TRADE

LOOK,
do me a favour ok
ask your broker how to work out Nominal Margin or research it for yourself
I’ve given you a lot of material here

do me a favour and do some homework and find this out
and if you can’t i’ll help you

but, remember I WORKED THIS OUT ON MY OWN
so… why should you not ?

Nomainal margin is a combination of
Account Leverage
Local Currency
Current Exchange Rate
Your instrument
Your Lot Size
i think that’s it

go work it out

Ok.thanks a lot for the explanation

Ok I now understand all your explanations so far.if you say mt4 is in lot sizes where does it show when you want to enter the value for the lot size?can you attach an image please?

This is what shows in the mobile mt4 platform when for instance I close a trade:

This is what shows when for instance I key in the volume as 1.00 and close the trade.it says I placed the trade at #1.00

From all what you have said so far,if I calculate the nominal margin and position using the example we used before where the amount I can risk is $9 and the lot size is 0.03,where will I indicate this amount and the position size when I click the icon ’ New Order’ when I want to place a new order?

[quote="Lexzykool317, post:23, topic:129608.it says I placed the trade at #1.00
[/quote]

it states I placed the trade at 1.00 I mean.
What does the volume actually represent?

That means you have bought 1 standard lot.
For mini lot it would say 0.10, for micro lot 0.01

I trust this is a demo account

Excellent :stuck_out_tongue: hehe glad to hear it.

it is in Lot sizes
it shows it here

1.00 (in blue writing) is the lot size you used for this trade
so this trade was
EUR USD
you were BUYING
You bought at 1.22150
and you started trading with 1.00 standard Lot ($10 per pip)

now we can see by this…

that

You’re NOMINAL MARGIN for the trade is $244.30
so if you traded at a lot size of 0.10 Lots… it’s reasonable to assume that the NOMINAL MARGIN would APPROX… be $24.43 OR THERE ABOUTS, it depends on exchange rate as well.

Now… You’re margin level WITH THIS NOMINAL MARGIN AND LOT SIZE was 1876.32% THAT’S GOOD
as a general rule, KEEP IT ABOVE 1,000%

if it goes to 100% You are in trouble
if it goes to 80% you’ll get a margin call
if it goes to 20% YOUR’E DONE, Account is blown up

Now…

Mate… see this icon in the top right corner

this is the icon to ADD A NEW TRADE

when you press this it will take you to another screen

on one side you will have the option to enter a Stop Loss amount
on the other side you will have a take profit amount

i think TAKE PROFIT is on the right
and STOP LOSS is on the left

now. IN THE MIDDLE of those 2 things you get to choose YOUR LOT SIZE

since you just did a trade for 1.00 lots
go back into this button
and LOOK AROUND for where it says 1.00

now,JUST FOR EXPERIMENTATION

CHANGE 1.00 to 0.05
AND PLACE THE TRADE
then come back to the trade screen and see what happens

then you will know how to change the lot size

DOES THAT MAKE SENSE

yes, its a demo account. ok. so if 1.00 is for standard lot, 0.10 for micro etc, does it mean the other values are values for lots in between? i a value like 0.05 will be for what lot?

Why we basically use this term ? Is it for Forex Trading or for cyrptocurrency trading also ?

Hi Lexzykool.

1 standard lot (1.00) is 100, 000 units
1 mini lot (0.10) is 10, 000 units
1 micro lot (0.01) is 1, 000 units

In your example, 0.05 is 5 micro lots, or 5, 000 units

Hope that helps

yes it does. i thought volume and position size are two different things hence the confusion.but thanks a lot for taking your time to explain.
One more thing please, what is the contract value for GBP/USD Pair?

Yes it does.tanx a lot.I appreciate

[quote=“Lexzykool317, post:17, topic:129608”]
Now. did you understand this… that you are risking 1% of what is remaining
because 1% x 900 = 9

From the calculations we made for this,if I am risking 9$ to trade for a micro lot of 0.01 and after the calculations,we got 0.03 as the lot size.
Just to be clear from all these,it’s 0.03 I will enter as the volume I want to trade in the ‘New Order’ column on the mt4 platform,right?

@Lexzykool317
EDIT : MY APOLOGIES MATE for confusing you again
i had an entire evening of no sleep due to work commitments

Volume in the industry GENERALLY MEANS what i stated
but, i forgot about the screens shot
so yeah…

in the screenshot VOLUME means LOT SIZE
sorry again for the confusion
be cool