Hello,
I’ve been attending the Pipsology class for a few days now and I’m learning a ton about Forex.
I do feel there might be a mistake in this lesson though : Trading Scenario: Margin Call Level at 100% and Stop Out Level at 50% (i wanted to put a link but as a new user I can not do this)
This lesson gives an example scenario where one trader would buy 1 Standard Lot.
1 standard lot is 100,000 units which is equivalent to a position size of 100,000 (if i’m not mistaken)
The lesson shows how the account is impacted by pips fluctuation several times during the lesson in the form of tables containing all the account metrics. In this tables, we can see that the position size is 100,000.
Yet, to calculate the Floating P/L we use a position size of 10,000 like so :
Floating P/L = (Current Price - Entry Price) x 10,000 x $X/pip
Did i miss something ? if so, would someone care to explain how the position size is only 10,000 in the Floating P/L calculus ?
Thank you for your help.