Oanda trading platform

Beginner Questions
1

I’m currently on the demo Oanda platform FX game.

I want to try this platform for a number of reasons I won’t bore you with.

It seems that the lowest leverage on FX Game they offer is 10:1 is that right? Or am I missing something, i wouldn’t mind demoing with lower leverage if possible.

Now they offer units as opposed to lots.

Again I’m assuming this allows you to specify exactly how many units of currency you want.

Please feel free to tell me if I’m wrong. I’ve deduced (clever me) that the money management side of forex is without doubt the one of the most crucial aspects of trading and I need to get this right.

If for instance I have a 10:1 leverage and I purchase say 10,0000 units does that mean I now control $100,000 of currency say GDP/USD or does that mean it has only used $1,000 out of a $10,000 account to buy one standard minilot? (I’m guessing the latter).

I don’t know if someone like tyman has covered money management and leverage/margin on trading platforms before but as you can imagine it’s a little more confusing on an actual trading platform than how it’s outlaid in babypips class (although large respect to babypips as a great learner tool).

2

ok 10,0000 = 100,000 so I’m going to use 10K. 10:1 leverage it would be 10K for 1K of your account. You can use your own leverage you just have to figure it out yourself. Its in unit so you can trade what ever size you want. Hope I answer your question

3

Thanks that does help.

I just have to figure out how I can get my leverage down to say 5:1 on my Oanda demo account.

So then if I went for 10,000 units with a 10,000 account with 10:1 leverage ($1000) means I would be staking 10% of my account on a trade?

4

You want to have more leverage than needed. On a margin call Oanda takes it all. I suggest for 10K account 5:1 would be 50K or 5 Minis.

5

Cheers this has been very very helpful.