Hello Guys,
I have a problem understanding position size. lets say am trading a $100 with a leverage of 100:1 how do I calculate the positions size? and what does stop loss have to do with the price per pip? isn’t the price per pip calculated by the leverage and the lot size.
No, per pip depends on your trading lots size. Like, if your trading lot is 1$ then per pip value will be 1$ for you.
Sorry that what I meant when I said account balance.I am just confused on position sizing, because the stop loss cannot determine the price per pip, and thats what I read here on babypips and I also watched i on many YouTube videos. If so how do you determne the position size of $100 with a lot size of 10K.
Hi mate. Yah your stop loss can be in $ amount too. Forget leverage forget lot size. Very simple: you risk 1% per trade or position. So your maximum risk is $1. That’s it. So it doesn’t matter where your stop loss is just make sure it’s equal to $1.