Hi.
let’s say i have 100$ deposit on my account and i’m using 200:1 leverage.
for risk management and calculate 1% of my capital , i should calculate 1% of 100$ or 1% of (100*200)$ ?
1% of $100.
The aim of risk management is to calculate and limit the capital loss from your account for the trade that goes against you.
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Was this all you wanted to know or is there something else we could discuss in this thread? I guess there are a lot a newbie should learn about position sizing.
Yes 1 % if 100%. It means in a single trade your maximum loss limit is 1$ if your capital is 100$ and risk percentage is 1%. If position size increases, total number of pips will be decreased.
That’s the correct one; by the way don’t open multiple trades position at a time.
Of course 1% from your deposit, it is 1 dollar. And it depends on your stop loss size and order volume to calculate your potential profit or losses. Which order size are you going to choose?
I think you need to risk 2-3% of the capital in a single trade as your account is micro and minimum lot size is 0.01. If you risk $1 with the minimum lot size than you need ro put the stop loss some 70-80 above or below the current bid price. Is it viable?