As i’ve come to understand that most brokers dont offer a nano lot size when opening a position, the minimum position which is in standard lot is 0.01 which is equal to $10 and 10% risk on one trade for my $100 margin. I want to know how to set my risk to 1% or must i risk 10% of my margin. Broker is Alpari. Please any workout suggestion will be highly appreciated.
Your trouble is your account size, which is too small for proper risk management. If you want to trade such a small sum then you need what is called a ‘micro account’. Not all brokers offer this.
From an MT4 point of view, there is no difference between a micro account and a regular account - the interface is exactly the same. However, that same ‘0.01’ is interpreted as a position size of only 10 units, rather than the 1000 units of a regular account, by your broker. So it is entirely about your broker, and not about your platform.
If you need a micro account, you might consider XM.com, which is who I use. They are NOT my regular broker (who doesn’t offer a micro account), but I have had no problem with XM on the micro account level. Even after you have a properly funded trading account, micro accounts are very useful to ‘demo trade’ with real money, which helps test they psychological elements of a strategy in a way that ‘paper trading’ does not.
Edit: Really good question, by the way. That you are focusing on proper risk management this early in your trading is a very good sign.
Thank you sir…But i want to know if theres a way to use stop loss to attain this risk control goal on micro account traded on meta 4?
You can use the Babypips Position Size Calculator, which you can find here. Once you know your entry point and your stop loss, the calculator will tell you what size position to use.
For a more complete breakdown of how this works, see the Babypips course on calculating pip value and position size.