I try BabyPips position size calculator, and, e.g:
Account Currency: USD
Account Balance: 10000
Risk Percentage: 2%
Stop Loss in Pips: 10
Currency Pair: EUR/USD
So it calculate that is:
Amount at Risk: 20$
Position Size: 20000 units
Standard Lots: 0
Mini Lots: 2
Micro Lots: 20
…
So, I opendemo acc with oanda with 1000$. And when i want to enter in this trade, i have only about 7000 units with leverage 1:10. So how i can risk 2% and open position, when i dont have 20000 units in my acc?
A 20,000-unit position in EUR/USD is worth $21,934 at the current EUR/USD price of 1.0967
In order for you to put on a $21,934 position, [I]in an account that has only $1,000 in it[/I] —
[B]— you have to [U]use[/U] at least 22:1 [U]actual[/U] leverage.[/B]
Your account has a limit of [B]10:1 maximum allowable leverage.[/B] You need to increase the maximum allowable leverage.
I suggest that you increase it to the largest maximum allowable leverage available from Oanda.
Notes:
You had a typo in your first paragraph — in the Position Size Calculator, you entered 1,000 USD for your account balance, not 10,000 USD as you wrote in your post.
Your account does not hold 7,000 [I]units,[/I] or 20,000 [I]units,[/I] or any other number of [I]units.[/I] Your account holds $1,000.
Hello,
Calculation for margin requirement is simple: Price/leverage*lot size
So in your case,
Let’s say EUR/USD is trading at 1.09845, and your leverage is 10x and you want to invest $1000.
Calculation goes as follows
$1000 = 1.09845x/10
$1000= 0.109845x
x=9103.73
That means that you can trade around 9 micro lots of EURUSD
And in case of your risk, i.e. 2% which means $20 (2% of $1000)
and for your 10x leverage it comes up to $200 which means 20 pips.
For limiting your risk you can put your stop loss 20pips lower.