How do I determine lot size?

Beginner Questions
1

How do I determine the best lot size to use based on my trading account?

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2

If you work recently, I advise you not to take a large lot size.

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3

Don’t take more than 2% risk on your per trade position; that is how you can calculate your trading lot size!

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5

Thank you very much for that

6

Actually, your trading lot depends on your trading capital; share your trading capital size (if you want actually). Then it will be easy to talk on your lot size!

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7

$200 is my trading Capital

8

The number of lots and the kind size of lot you purchase or sell in trade affect the size of your position: A micro lot is 10,000 units in size is 100,000 units.

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9

agree with you .

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10

2% risk ratio is very low , but to maintain this risk ratio for all time is really a challenging issue especially for the beginners level.

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11

No doubt 2% is a good number! But I guess, new traders need to be more conscious on the risk raatios; so 1% would be much better!

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12

First, determine how much from equity you want to risk per trade (in money terms), then determine stop loss for your trade (where you abort your price prediction accepting you was wrong) and then using pip value determine lot size.

For example you want to risk 20 USD and stop loss distance is 100 pips. Hence pip value is 0.2 USD. Since pip value for 1 lot position is 10 USD, your lot size should be 0.02.

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13

$200 might be a lot of money for you to have put into your account. You might be thinking that if you only risk 2% of $200 that is only $4, which doesn’t matter much whether you win or lose.

That would be a bad judgement. Use a simple strategy in a demo account and make sure you understand before the trade is opened exactly what you will do at every point - price can only go up or go down so its not that hard. Especially, use a stop-loss.

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14

Been there and I know how you feel. If I were were you I’d use a broker that allows tiny trade sizes eg Oanda.

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15

this is a million dollar question ,holy grail hides in it ,i won’t say it’s 1% nor 2%

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16

That tells the full story! Actually, money management is such an important parameter here; so don’t take high risk rewards on your per trade position!

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17

Conventional wisdom dictates that you risk between 1 & 2 percent of your account balance per trade especially if your balance is small. You seem to be a beginner and with a balance of $200 that seems the way to go.
Having said that though I am not suggesting that you try it but I would like you to take a look at a video on youtube with the title below and see what is possible if you understand the rudiments of forex trading and are not averse to risk-taking.

How this trader turned $200 into $190,000 in 4 hours - YouTube

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