Hi all !
I am getting my head around calculating XAU / USD position size but couldn’t find the right answer.
If my account size is $2,000, amount risk % is 7.5% and stop loss is 30 pips, what would be the position size of XAU/USD pair ?
Different sites are giving different formulae :(, so I am confused. Babypips calculator is giving 50,000 units.
Another follow up question is how can I buy 50,000 units of XAU/USD when current rate is 1725.00 (assumed) and my account balance is only $2,000 and risk % is 7.5% ?
Another follow up question is how the use leverage would affect the position size ? Will a trader be able to buy more units if leverage is used ?
I would appreciate your kind help in this matter.
Kind Regards,
Shawn