Hello,
I’m soon going to complete all of the undergraduate lessons and move to the last level. However I came across a lesson with Newbie Ned in which he sets a stop loss that’s too tight and prevents him to grab a hundred pips because his stop loss limit was calculated by means of percentage of his 500$ account which is too small to allow him to set a wider stop loss. I think I didn’t understand the maths. 2% of his account means 10$ and that’s all he’s ready to risk for this trade. In order to place a 10k order he needs to multiply this figure with 1 so the formula would be 10 (the ammount he’s risking)/10 (the gap between his entry and his stop loss in pips) x 10k (size of mini lot) = 10k (size of his order). Now if he were allowed to trade micro lots too (which is not the case) he could keep his risk at that level and set a stop loss 100 pips away but 10k is the minimum ammount allowed by his trader. Could he go long or short with a standard lot (100k) by keeping his account size and risk percentage unchanged? I mean something like 10/10 x 100k or better 10/100 x 100k which means he is risking 10 dollars out of his 500 but setting somehow his stop loss 100 pips under his entry level, if he goes long and his order ammount remains 10k. Could he trade a mini lot with just 500$ keeping at the same time the risk at 2%? I saw many brokers offering 1:200 leverage…so I guess…he could…