My Calculations (right hmm?)

Beginner Questions
1

Hey,

i was reading this forum and the school for days now and I think it´s time for my first post :wink:

I´m just Struggling around with Oandas Demo-Account and tryin some things.
I hope you can help me with this calculations…:confused:
I´m a little confused with this Units at Oanda.
So I assume that I use just 2% of my Money (safety first ;-))

Start 997.11 €
Leverage is 20

Buy EUR/USD 10.000 UNITS@ 1.27087 (mini-lot)
Sold EUR/USD10.000 UNITS@ 1.26996 (mini-lot)

= -9 PIPS (round)

1PIP=0,0001/1.2709=0.000079

10000 UNITS = 0.000079100009= -7.08

Allright my History shows -7.1653 but thats because of Spread I think…

  1. Question: Where is the Leverage coming in? Did I buy for 1.2709*10000=12709? So with Leverage 20 it is about 635 €.

  2. Question: So I am theoretically risking 63,5% of my Account. Is it right to dial a stop/loss in so that I can just loose 20€ (2% of my Bankroll or whatever money management I use)?

Thanks…and PEACE

2

u meant u started with account balance 997.11 euro

if you use 20 leverage then

for 1 mini lot of 10,000 units

used margin = 500

so 20 X 500 = 10000 units means

equity = 997.11
used margin = 500
levarge = 20
usable margin = 497

as eur/usd droped so you suffered a loss of 7.1653

you risked 500 euros of your total balance which is bad.

2% of your total account means 2% of 997.11

which is 19.94 approx 20 euros

so you should have used 20 euros if your broker allows you 500 levarge

20 x 500 = 10000

check what maximum leverage your broker allows

normally maximum they allow is 400 so

you can invest

25 euros as

25 X 400 = 10,000

you can add stop loss as well if you like

it is automatic on secreen

3

…than I need a big leverage with a bankroll of 1000 $.

Or am I actually just risking 2% of my money if I set the S/L this way??
I mean if I set it to stopp at -20 I can just loose 20$…

4

look if your used margin is only 25 euros (2% of ur balance)how can you loose more than that. your trade will automatically be stopped if your losses fall 25. in this way you dont need to put stop loss. in other case where you use 500 used margin. that amount would definitely be more than 25 but you need to check it by actually putting in system. in etoro its automatic and you can see on screen. i mean if you use 500 used margin you will not automatically able to make stop loss just 20. it might be some value more than 25

5

Sounds good. I may try that idea and see how it goes. Thanks.

Money Is Everything.