Will the Position Sizing tool work with a $50 Avvount?
I can’t seem to get it to work right.
I have a Demo account to try a strategy and funded it with $50. to trade micro/nano lots at .01 on a Mini Platform.
The results show all Zeroes in Lot Sizes but it says 84 position Units
What does that mean?
Thanks in advance for your help
I would like to learn how to make use of this tool in the future.
I don’t know what values you entered into the calculator, so I picked the following values to use in an example:
USD account currency, $50 account balance, 2% risk, 30 pip stop-loss, and you’re trading the EUR/USD.
Here are the results:
Amount at risk is $1, because the risk was specified as 2% of the $50 account balance.
Position size = 333 units of currency (not lots). In this case, it means 333 euro.
This position size is [B]less than 1 standard lot[/B] (100,000 units), [B]less than 1 mini lot[/B] (10,000 units) and [B]less than 1 micro lot[/B] (1,000 units). Hence, the zeroes in those boxes.
This trade can only be made through a forex account which lets you trade in [B]units[/B], or in [B]nano lots[/B] (which are not shown in the position size calculator).
If nano lots were shown in the calculator, that box would indicate 3 nano lots (which is equal to 300 units). In a true nano account, you can trade only a whole number of nano lots, that is, only in increments of 100 units.
I understand your explanation. Thank You.
I get it that no nano lots are shown in the tool.
I just don’t understand the part about nano acounts and even numbered lots. And the lack of a last step formula to manually take the 333 units and calculate nano lots from that.
I do use a Mini Account and it accepts fractional lot sizes. I have no clue how to change the number of units into lots or fractions thereof though.
If anyone can tell mE THAT IT WOULD BE HELPFUL.
tHANKS AGAIN
Mathematically, 333 units = 3.33 nano lots = 0.333 micro lots = 0.0333 mini lots = 0.00333 standard lots.
Many forex accounts allow you to trade only in whole numbers of lots — standard lots, or mini lots, or micro lots, or nano lots, as the case may be.
If your mini account allows you to trade a position size of 0.0333 mini lots, then your problem is solved, based on the numbers in my example.
In your original post, you said that the Position Calculator gave you the answer 84 units. To convert that to a fraction of a mini lot, divide 84 by 10,000. The answer is 0.0084 mini lots. If your platform will allow you to enter such a number, then you’re on your way.
Thanks for completing the example for me. Now, I can make use of the calculator. I appreciate it much.