I don’t know any other way to ask this question but here is a thing tickling in to my mind.
How much minimum capital should i have to trade 1 lot size (one trade at a time) with a mini account using leverage 1:200 ?
For example if i am trading 1 lot of GBPUSD at price of 1.5000 , i would need 75 bucks as a margin. My question is if i am planning to risk 3 % of my total capital per trade and i intend to open only one trade at a time how much minimum capital should i have ?
I already know that if i have $1000 capital. this trade would give me a room for 30 pips of stop loss. My query is about the rough estimate of what amount i must have to secure this trade as i am planning to pop up my account with real money.
Not to make your question seem silly, but why are you asking it? You already answered it yourself. It’s simple math with the only x factor being your personal risk tolerance.
Just keep figuring out your stop size vs risk of account per trade until you arrive at a figure YOU can live with.
My question is about money my friend 
. Because i dont have 1000 $ for now . I just want to know the minimum capital (rather its more or less then 1000 bucks). I am hunting for an exact number one should have to trade 1 lot size
But one lot can be anywhere from a nano lot to a full size lot.
There’s an awful lot of info missing. For instance, if you had a $10.00 account with Oanda you could safely trade it with only fractions of a penny per pip at risk.
It’s hard for anyone to answer this but you.
Just made a calculation on the example you gave GBPUSD, and this is the result: To be able to open this order you need to have the following amount: $1589.6.
Thanks Peter. that number seems legit, can you explain how you did this calculation.
What size stop loss will you typically be using on the trade, and are you talking of a standard lot in GBP/USD where a one pip move equals $10, or a mini lot where a one pip move equals $1.00.
I am talking about mini lot i.e. 1 lot = 1 dollar and lot size= 1.00 , i mentioned my stop loss of 3 %. It means whatever my capital would be , i am allowing it to take stop loss of 3 %. Lets say i have $1000 capital then stop loss would be of 30 pips. as i am risking 30 dollars against 1000 capital (3 %).
I am just asking about a rough estimate of minimum capital one should have to secure the trade.
As long as you can cover the required margin, the trade should kick off. However make sure that you have:
) Enough capital capital. At least 2/3 of the margin. Ideally 20X of the margin.
Assuming your account is denominated in USD, then for the GBP/USD trade you described, 1 pip is worth $1.
Let’s say that your broker charges a 3-pip spread on GBP/USD, and you want your stop-loss to be 30 pips away from your entry price [B]after[/B] you have covered the spread. This means that a stopped-out trade will cost you 33 pips, which equals $33.
You could do 28 consecutive GBP/USD trades, and take a 33-pip loss on each one, before wiping out your $1,000 account. I’m sure you would stop what you’re doing, and re-evaluate your trading plan, long before you had taken that many consecutive losses.
[B]So, looked at in this way, $1,000 in capital is enough to do what you want to do.[/B]
I don’t know how [I][B]janks peter[/B][/I] calculated the $1,589.60 figure which he recommended to you, but I would suggest a starting balance close to his recommendation, but arrived at differently. Just using a rule-of-thumb that I like, I suggest you limit your use of [I]actual leverage[/I] to no more than 10 times your capital.
In other words, notional value of trade ÷ capital = 10 or less. So, capital = notional value of trade ÷ 10.
10,000 units of GBP/USD (at a GBP/USD price of 1.5000) is a notional value of $15,000. One-tenth of that is $1,500.
[B]So, this rule-of-thumb says that you need $1,500 in capital to place a trade with a notional value of $15,000.[/B]
It all centers around the amount in your trading account and your risk % ( the amount you are willing to risk for the lot you want to trade). As long as you have more than the amount of money your stoploss translate to, you can trade the lot you chose. PLEASE REMEMBER NOT TO RISK MORE THAN A FEW PERCENT OF YOUR ACCOUNT ON ANY TRADE! Goodluck!
i believe that is the answer to my question. I was exactly looking for such solution. Thank you very much [B]Clint[/B], you are the man.
Start Trading having a Micro-Account or a Spread Bet Account that permits a minimal trade sizing of 10 cents or a 10p multiply bet, because in case you blow that up in other words to reseed that.Only risk 1% (2% maximum! ) On any one particular buy and sell, which could possibly have several jobs.
Well if you are asking how much capital u need in your account to open 1 lot size trade that solely depends on your leverage. But if you see the same thing from money management aspect then i think you should have at least $30k-$50k on your account to trade 1 lot each time. That would be the ideal lot size for that quantity of capital from the aspect of money management.
Yes, leverage can affect our trading. If we use high leverage, we can make order with small margin. But if we use smaller, we need bigger margin for opening position. For trading in forex, i use leverage 1:500.
It depends on the leverage, higher leverage, lesser your capital would need to trade 1 lot.
just remember when you enter a trade of 1 mini lot you are not entering 1.00 for your lot size. make sure you are entering .10 for your lot size.
I really think you should trade demo first , do not trade real money now.
This is just a simple question and I’m really tired looking for the right answer, the question was how much capital do I need to trade 1 lot size ? Simple : For every $100 you spend , the lot size would be .01 . So lets do the math, 10,000 X .01 / 100 = 1 .
You would need $10,0000 to trade 1 lot size. But if you want to start with $1,000 which I suggest is the best amount to start, your lot size would be .1 . So if you are risking 30 pips to trade ,… …30 x 0.1= 3 . Now it’s up to you if you want to risk 1 lot size for $1000.00 lets do the same situation with 1 lot size, 30 x 1 = 30 . The more you risk the more you tend to lose or win, but in this case is always good to know a little bit about FOREX . I read a lot of tutorial to understand just the simple way how to trade.
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