I read a lot about the topic… so I understood the differences between standard, mini and micro lots.
and I thought that I understood the basics in Position Size calculation.
Since a year I was on Demo at Oanda… (Levergage 1:50)
I used the Lot-Size calculator from Babypips and everything was fine.
I thought everything is clear regarding position size calculation.
But now I wanted to try out some other brokers.
So I created a Demo account on HotForex.
… But here starts my confusion.
What confuses me is the following:
These values are for example:
Account Currency = €
Account Balance = 5.000
Risk = 1% (50€)
SL in Pips = 100
Pair: EUR/USD
Price for EUR/USD = 1.3000
Said to me:
I’m risking 50 €.
Size in Units: 6.500
Micro Lots: 6 (or 7 when I round it up)
Now I tried out the Lot-Size Calculator from HotForex because I was confused,
that this Lot-Size Calculator has also a field for “leverage”.
My HotForex Demo Account has a Leverage of 1:300.
Hello taggert, and welcome to this forum. I apologize that you had to wait so long for a reply to your question.
I tried that HotForex Position Size Calculator, and it makes no sense to me.
Consider the following:
[B]1. Account leverage has nothing to do with the calculation of position size.[/B] But, this HotForex calculator will not give you a result, unless you enter a figure for account leverage. Also, if you try various figures for account leverage (keeping all the other numbers the same), you find that the higher your account leverage, the smaller your position size. That’s total nonsense.
[B]2.[/B] Two lines in this calculator (one in the upper portion, and one in the “results” portion) refer to [B]USD,[/B] regardless of the account currency you specify. But, obviously, if your account currency is EUR, you want all references to money-amounts to be in EUR, as well. The way this calculator is set up is very confusing.
[B]3.[/B] The calculator asks you for the [B]bid price of the USD/JPY,[/B] regardless of the currency pair you are trading. That’s just ridiculous.
Forget this HotForex calculator.
Stick with the Babypips Position Size Calculator. It works. It’s reliable. It’s all you need.
p.s. - your English is fine — no need to apologize!
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