Hi all
just got my first demo account and i’m trying out the things that i’ve learnt so far, mainly about how to place orders, stop losses, leverage etc.
I got a 500$ account to be realistic, since it doesnt make sense to have a 10k one. Broker offers 1:20 leverage, so here’s where I’m getting confused.
I presume that means that $500x20 = $10k buying power which would translate to a mini lot (0.1 lot size correct?)
Now when I use mt4 (provided by broker) I tried placing a market order at 0.2 lot size, and rightly show it wont let me, and it saying that I do not have enough money (so far so good), but this only happens when I try to sell… When I clicked buy (market order at 0.2 lot size) it worked … I mean I thought that it will not let you purchase 0.2 lot size no matter what, even if you place a stop loss 1pip away from the pending order cause 0.2 lot size is 20,000$, so your trade should never be executed, irrespective of which direction the market goes,
so to summarize,
why is it letting my buy but not sell at 0.2 lots (0.1 works both ways)
oh also, i’ve emailed my broker to ask about this, but i’m until they reply might aswell see other peoples view on this.
Also, it could be that I’ve understood leverage wrongly if what I have written makes sense
It might depend on the pair you’re buying and your brokers’ spread. I honestly can’t answer that one for you, sorry.
However, kudo’s for being realistic about your $500 account. Too many people open a $100,000 demo account and get used to playing with large sums, then when they open a live$1k account they end up playing with orders way too big just to try and see those bigger numbers that they’re used to.
On that same note, if you’re buying .2 lots on a $500 account you’re going to blow that account on the first trade, unless you get lucky in which case you’ll blow it on the second, lol.
Stick with smaller unit amounts, like 5-10% (i use 2.5%) of your balance max, and only risk 1-2% on each trade. You’ll find you will preserve your account for much, much longer.
thanks
yes dont worry i’ve tried the 0.2lot trade just for the sake of testing the leverage limitation and see how safely i can trust the barrier (which in these case seemed to failed?)
as for the pair it is a EURUSD pair for both buy/sell test at 0.2
… I mean I thought that it will not let you purchase 0.2 lot size no matter what, even if you place a stop loss 1pip away from the pending order cause 0.2 lot size is 20,000$, so your trade should never be executed, irrespective of which direction the market goes,
