Just a quickie please. Okay, I’ve just got round to opening the demo a/c with Oanda.
I wanted to set the parameters at 2% leverage and $250 on deposit (or some other lowly figure). I want this ‘demo a/c’ it to be realistic (for me); when I ‘do’ eventually go live - I’ll be doing so with pennies so to speak - till I know for sure what I am doing… I’m pretty cautious when it comes to money…
However, it seems the lowest leverage I can set on Ooanda is 10%.
Q - I am right thinking leverage should be at 2% - or should that be 1% when first starting out?
Q - If leverage is 2%, does that mean on $250, my risk (providing I use stop loss accordingly) would be max $5?
Q - Sorry (last one I promise!) Since 10% seems to be lowest leverage I can use on Ooanda, what should my ‘capital’ be please? Think I mentioned I’m ‘not’ a mathematical genius!!!
As always, thank you guys (and gals) for all your help - I know I do ask a lot of questions - I can’t thank you enough for indulging me with your time and advice…
Jessey
PS. Sorry, that wasn’t quite the quickie I intended - sorry for ramblin’…
Oops! It’s 10:1!!! (red face/still don’t know how to do it)…
Okay, so it’s 10:1. If I want to stay very conservative and realistic (which I do), what amount shall I put in as my capital? I don’t want to risk a lot (potential loss) when I place a trade? Hope I said that right, since I buggered up my question above…
But this wouldn’t be realistic for me - ie. I wouldn’t start out with an a/c with over $1000 in it - till I was ‘really’ confident of what I was doing.
And I thought I should only be risking 2% (and not 13%) of my trade? Is it the case, I ‘could’ do that with a live account but not a demo one?
Is there not some site I can open a demo a/c with baby amounts (so it’s more realistic for me). Sorry if this sounds a dumb question - I like things to be really simple - and I would much rather demo with ‘real like’ figures (from my point of view)… Hope that makes sense.
Anyway, thanks again Banker for all your help here - I appreciate it.
I use FXCM micro account, I’m like you in small lots. The Micro account in basic terms, for a $1000 lot I am risking roughly $35 margin on my trade that is 1 lot. Depending on what pair, comes out to be basically 10 cents a pip (profit or loss). I also play with my Demo account the same way. I started out with $350 when I opened my live account about 6 months ago, haven’t lost it yet and I am actually in the + side for about $85. Almost 25% return in 6 months. I’ll take that. About $20 of that was made yesterday with the Euro and the Pound on two trades that I let ride for about 4 hours. Now I might put 10 or 15 on a game this weekend…It’s all in fun.
Phew!.. Thank you Banker (you deserve a drink for this lot), have one on me
That was a lot of info - I’m going to try and absorb it later tonight (going out now with hubby)… I appreciate you going into such much detail - I will get this jargon eventually and how it all works. Thank you!
Ozzymau - so you’re like me - in the little baby league Sounds like you’re doing well - good on you and long may it continue…
Oanda allow you to edit how much you have in you’re demo account as well. So if you plan on depositing £100 when you go live then you are also able to change your demo account to £100. Just ask if you want me to talk you through it.
However as Banker has been saying, with such a low leverage, you don’t get much bang for your buck.
Familiarise yourself with the BabyPips Position Size calculator as advised & your 2% risk covers from where you intend to take a position (whether you buy or sell) to where you set your stop-loss.
So if your stop-loss is 50 pips away then your 2% covers those 50 pips & if its only 20 pips away, then your 2% only covers 20 pips. The only variance in the two examples will be the value of each pip (eg. if 2% was £20, then £20 divided by 20 pips = £1 per pip. In the 50 pip example, £20 / 50 pips, then 1 pip = 40p) That way from when you open a trade, even if the price instantly goes against you & hits your stop-loss, you only lose 2%. The position size calculator will keep your risk management right, it’ll do all (well some of) the hardwork.
Leverage maximises your money making potential, it can be your friend. Just don’t use too much & keep up the good mon£y management ethos. My demo uses 50:1 leverage & so far I’ve only been buying the smallest lot size.
Try that, you’ll soon see the effect of price moving on your profits/losses (they stay small & manageable). It’s all trial & error Jessey & we’re all in here for the long haul with you.
Thanks to Banker again, I’m not wanting to step on your toes, I just wanted to try a more Jessey friendly approach. My explanation is based on the Bankers ideas Jessey, it’s just worded differently & I hope that it helped.
