so i will open a micro account with a 100$ deposit … so i wanted to set the same criteria on the demo so that i get used to it first … i dont know what to say but i am kinda carefull when it comes to money so again … i will be working on a micro account .01 lots … with maximum laverage 1:100 that that will make the pip = 0.1 dollars … so now i cant find such settings on the mt4 … so what some of money\laverage would be together close to it … like 100,000 deposit … on a 1:1 laverage dealing a .1 lots lets me make 1 dollar a pip … i got confused by the math … so any one can give me a hand ??? and sorry for the confusing question
If you want a value of a pip be $0.1 then in order windown (F9) the volume should be set to 0.01. Means you are buying 1,000 units. If both account and quote currency is in $.
If you deposit $100 and make an order of 0.01 volume you will be using 1:10 leverage. So you’d still have 1:90 leverage to use.
So if you make one EUR/USD order of 0.01 (1,000) and one order of GBP/USD of 0.01 (1,000), you will be using 1:20 out of your maximum 1:100. Meaning you’d still have 1:80 to play with. But its not wise to use up all leverage as the more leverage you use the smaller will be the margin call.
I’m not sure what Nerys is talking about but the part about leverage is just plain wrong. However he/she is right about the lot size. Here is a rough estimate if you were trading the EURUSD.
Lot Size in MT4 // Currency units Traded // $/pip
0.01 // 1,000 // $0.10
0.10 // 10,000 // $1.00
1.00 // 100,000 // $10.00
This may vary between brokers, but will be about the same regardless of leverage. Keep in mind that this will be different for most pairs because other pairs have different per pip $ values.
If you are only trading with $100, I would not recommend trading on MT4. You can use it for charting, but you have to think about the max risk per trade.
Using good money management, you should only risk 1% per trade max, especially when you are first starting out. That means you can only risk $1.00 per trade. At $0.10 per pip, that is only 10 pips of risk per trade. Unless you are scalping, you cannot set a 10 pip stop loss and expect to be successful.
I would suggest opening an account with Oanda and trading nano lots. This means that you can trade for as little as $0.01 per pip. With $1.00 of risk per trade, this will allow you to set a maximum of a 100 pip stop loss on each trade. That is more realistic and will allow you to get the most practice possible.
Trading for a penny a pip may not seem exciting, but your $100 will probably last a lot longer, giving you a better education.
Good Luck!
As you say, it depends largely on the broker.
IBFX will let you trade nano lots in MT4, so penny pips are not a problem. That’s the smallest you can go with IBFX. Quite unlike Oanda with which you can trade fractions of a cent on their proprietary platform, but not on their MT4. And I totally agree that $0.10 pips are too high for a $100.00 account.
Oanda or IBFX would likely be on the top of my list of brokers for first time accounts that one can add to when they are ready.
The cool thing about IBFX is that a mini account there uses lot sizes that pay exactly as they look.
A 0.01 lot size pays a penny, or close per pip depending on the pairs.
A 0.10 lot pays ten cents a pip, again depending on the pair.
And a 1.00 lot is a dollar a pip, as it is a full mini 10k lot.
You can also do any number of lots starting from $0.01.
Like 0.07 lots, or 0.31 lots. Or, 1.57 lots, or 12.41 lots.
And they would pay just like they look, or close to it, again depending on the pair.
Easy to keep that managed;)
That’s a great tip Master Tang, I wasn’t aware of that in IBFX…thanks!
Some other brokers also have this kind of account. Many call it a cent account. I have a cent account at LiteForex. On that account if I were to deposit $10 the account balance on MT4 would say $1000 they just move the decimal over. I think IBFX does the same thing. 10 cents a pip on a $100 account will be real risky.
Another option is to look for brokers offering free money there are a few around they will start you with an account with 100 or 200 dollars in it. That way you will have a risk free “demo” account that will be very close to what your real account will be. To be honest some of the brokers offering those kind of promotions may not be the best but its the only way I know of to get a risk free account that has a realistic low balance. Another thing about these bonus accounts is most run on a live server not a demo server so you get to see real slippage. Don’t expect to meet all the cryptic requirements to ever withdraw the bonus or the profit you may make with it;)
How’s the part about leverage is wrong? I think the OP thought that maximum leverage allowed by the broker is the leverage that is always used, I explained that it is the max and he can use smaller leverage on each trade.
Hi, I am also new here, and just finnished reading through the school of pipsology(leverega and position sizing twice!) but I still have problems understanding positioning sizing properly 
Is it so, with my demo acount with 1000$ (the same as I plan to ‘bet’ when I am confident in myself), and trade micro lots(0.01 in Oandas MT4), then a pip move is worth 0.01$? I am using leverage 20:1, and plan to risk 1% on each trade, = 10$, so then I can have stop losses for 100 pips? or if my stop loss is only 50pips, I could buy 0.02 lots to still risk 10$?
But I really doubt this is true, where does leverage come into play in this excample? when using 20:1, then each pip would be worth 20cents, or 2cents???
PS, sorry for ‘highjacking’ this thread, but I think the answers will benefit both/all following 