Position sizing - balance or margin?

Beginner Questions
1

Hi, Just a quick question.

Say I open 1 trade and calculate my position size using my balance, say 50000

Then I go to open another trade, wishing to use the same risk %.

Should I use the Usable Margin as what is in my account for the calculation, Equity, Account Balance?

Any help appreciated.

Cheers :slight_smile:

2

I would recommend you use your free margin (usable margin) if you want to be on the safe side.

3

Agreed with thelastbear if you wanna be conservative. How many positions do you usually put on simultaneously and what’s your usual risk per trade?

4

I apologise for butting into this thread & directing it off topic but I saw you active today & thought I might bring this thread to your attention.
http://forums.babypips.com/melting-pot/65846-dnb-price-action-thread-why-they-allowed-break-babypips-rules-2.html#post626556

Would you, or one of your senior mods care to comment or interact with the posters to offer a view on the subject matter please?
Obviously this reply bears no relevance to the topic & can be deleted, & I would usually hit a report post but haven’t experienced too much luck when taking that route.
Thanks.

5

It’s a matter of personal preference, but if in doubt then use margin. I use equity but my position sizes are quite conservative (generally 1%-2% of equity) and I limit myself to two open trades.

6

I usually care more about the equity and my balance.