hello
I want to ask.
if I open an account with an initial deposit of 100 $ how much leverage do I use?
and how many lots should I trade so that the value of one pips is equal to 1 $?
All the information you asked for is apart of babypips education/academy. You should start studying up there and learning the basics of forex (Which includes Lot size, leverage, pips and risk management). Its pretty early on in the course so you wont really have to sit there for a week before getting to the information you’re looking for.
it depends on the currency pair
but if you’re looking at a currency pair like EUR/USD, for example, that one’s $10 per pip on a full lot, so to trade at $1 per pip, you’d therefore need one tenth of a lot, which is called a mini-lot and is usually written as “0.1 lots”
that’s absolute - it doesn’t depend on your leverage (that’s fact, not opinion)
$100 isn’t nearly enough to trade 0.1 lots safely, regardless of your leverage (that’s opinion, not fact)
with sensible risk management, as a rule of thumb and perhaps slightly variably according to the type of trading you’re doing, you’d need something like $250 or $300 to trade one micro-lot (0.01 lots) safely
you could start off trading a micro-lot (0.01 lots) with only $100, if you really want to, and nobody will stop you from doing that and the broker will welcome it (because they hold the other side of your trades, and win when you lose), but any experienced trader will tell you that it’s “adventurous”
1 Like
Thank
I will only trade with my strategy, where I will target 7-10 pips and 3pips SL
May I know your trading pair’s name? Since 3 pips are too narrow!
I will only trade on the EU and GU pair.
and it was quite successful in practice on a demo account.
in a day I can get above 50 pips to 100 pips.
which trading strategy you have been following when trading practically ?
Hey newbie, with $100 capital you want your pip value to be $1? That is the fastest way to kill your Forex career. How many trades will you open simultaneously and how long will you hold the positions? $1 pip value will likely not be enough to hold three trades using a $100 equity. Yes, you will likely use a high leverage of up to 1:500 to increase your purchasing power. But overall, that is a high risk set up. Reduce your lot size and keep your pip value to a minimum of 0.20cents.
Listen, go find a broker that gives no deposit bonus. An example is the Forexchief $100 intant and free bonus, which has become popular on this forum. Intorex also gives up to $500 but it’s not easy to get it. Forget about withdrawing that bonus. You can use that money to test and see what you can actually do with $100 or more on a live account. Do that before throwing away your real money.
Then, how many trades you have done in demo by this strategy?
You can do whatever you want, but there are a few things to ‘know’ about before you pull a trigger. First off, I didn’t see anyone mention 1:50 leverage. I didn’t see anyone mention going through every course here on Bpips. I did see someone mention trading .01 lots. Understand your leverage before committing your cash. There are many things to consider before running a ‘business’.
For $100 deposit money, i suggest to use 1:500 leverage and only trade 0.01 lot…