Thank you so much lexys.

If you have $1,000 in your account, and are wanting to risk no more than 1% of your account in any individual trade (which I’d recommend), that means you’d want your risk to be limited to $10 per trade. So, you need to work out your position-size in such a way that the gap between your entry-level and your stop-loss level represents no more than $10. For example, if trading EUR/USD (whose pip movements are $10 on one lot) with a 20-pip stop-loss, you’d need the 20-pip gap to represent $10, which would mean $0.50 per pip. That would mean a position-size of one 20th (5%) of one lot, because $0.50 is one 20th of $10. So you would trade 5 microlots of that currency-pair, because 5 microlots are one 20th of a full lot.

I guess I get the idea of this example, I hope so… It’s more of a risk management for me.

Here’s my understanding:

Micro lot is $1,000 and it is equivalent to $0.10 per pip right?

Now what I need is a $0.50 per pip value for my 20 pip gap between my entry-level and my stop-loss level to make it a 10$ limit risk. That is $0.50 x 20pips = $10 right? If that so, I’m following the 1% risk in this single trade right? coz 1% of my $1,000 account is $10 correct?

Now here’s the tricky part and I hope I got it right:

That would mean a position-size of one 20th (5%) of one lot, because $0.50 is one 20th of $10. So you would trade 5 microlots of that currency-pair, because 5 microlots are one 20th of a full lot.

A micro lot is $0.10, that is 10c right? and in volume options that is 0.01 (MT4 platform), correct?

If that so, to get $0.50 per pip, I have to change the volume settings to 0.05 in my MT4 coz 0.05 is equivalent to $0.50 (50c), and that would make my pip value changed to $0.50. So a 20 pip movement in that single trade is now 10$ right?

You said I would need to trade 5 microlots in that particular currency-pair, because 5 microlots is equivalent to 0.05 volume (0.10 x 5 = 0.50) right? So by that simple change in my volume setting (0.05), I am now trading $0.50 (50c) per pip, correct?

I really do hope I got that right.

I’m using MT4 as my platform for trading and as far as I know, the ‘volume’ option is my lot size setting. But I’m still not sure of that I’m sorry.

Can you confirm this matter first if I got this right?

I have a follow up question regarding leverage below:

If I’m correct with the above explanation, question is, where does my leverage 1:100 applies in this transaction/trade?

I guess I’m having a hard time begging for questions with my broker. Their answers got me in a lot more confusion. Thank God for babypips community and to you especially.