Account Size = 50K
Pairs I trade = EUR/USD, GBP/USD and GBP/JPY
Risk per trade = 0.10%, 0.20%, 0.30% or 0.40%
SL = Depends (5 pips, 10 pips or 25 pips)
Now, I am asking all this is because I have entered second stage of evaluation with a prop firm and the leverage has been dropped from 1:10 to 1:3
My question is if my leverage is 1:3 then what is the max position size I can use. Please help me with an easy way to find this
All the articles are so confusing with standard lots, mini lots etc… Why does the forex world give so much weightage to pips when there are 5 decimals in reality? 4 decimals were used by old school brokers
For eg - If I were trading shares and I had 100 USD in my account and 1 share cost me 100 then I could buy 1 share.
But if the broker gave 10x leverage, then I could buy 100*10 =1000 quantity (Simple as that)
Why use such mumbo-jumbo when all you have to decide what is it you are going to enter in the volume box in MT4?
Now, I don’t bother to know all this because normally before placing a trade I decide my SL.
Then I divide my risk amount/ pips (Been trading from years)
If leverage is low as 1:3 then — Is it better to take multiple 1:1 or 1:2 RR trades or place few trades with high RR ratio ?