Hi all,
Could someone help me please?
Am currently trading demo. MT4, if I use 0.01 volume that’s a 1000 lot deal (micro). Everytime I trade surely it is therefore a 1000 unit deal everytime so why do we talk about position sizing?!
e.g. if I have 5,000GBP in my account and i trade 1% that’s £500 per trade so surely all I can buy is £500 worth of currency?!?!
Please help
Have you had a look in the Babypips School? It’s explained quite well there.
yes, I guess it’s a question of position sizing and applying that to the unit section of MT4??
I think you might be getting confused with leverage. If your position is 1000, that means you are trading $1000 or pounds or whatever, but it doesn’t mean you are USING 1000 of your money. Because your account is leveraged, you use a small amount of your money to trade a 1000 unit trade.
If you trade 1% of your account, I think you mean you risk 1%. That’s dependant on your stop loss level. You can trade a 1000 unit trade, with a stop loss of 10 pips, and that means you only lose $1 if you get stopped out.
Sorry, I’m doing a horrible job of explaining this. Actually, I’m not really sure what your question is, so not sure how to answer it. Maybe someone else can explain, or I suggest you read through the Babypips lesson on leverage and position sizing… very slowly.
1% of 5 000 is NOT, I repeat, NOT 500.
1% of 5 000 is 50.
5 000 / 100 = 50.
This is basic math.
Chill out dude
Guvvy, do some searching online as well as referencing the Babypips School before you go ahead and make 3 threads every single day.
Try using the search option as well in the forums as most of your questions have been asked by others and explained very thoroughly before.
Honestly, it’s better for yourself to find the answers on your own to these basic questions so you will have a firm grasp on things.
And what I think daydreamer65 is trying to say is that you need to actually spend some time yourself and try to figure it out rather than just being lazy and making a thread and hoping someone will just answer it for you.
Hey Clark I see you’re from Canada. Me too eh. Recommend a broker? Having troubles with restrictions on Canadians. Off topic, but this thread is bombing anyway eh.
The O/P has been given the answer to this question at least 3 times,
my post was chilled.
Check back through the forum archives.
Sometimes the softly softly approach does not work.
I see, “give me Forex on a silver platter”. Ironically, the silver platter is just above on the site menu, 2nd tab from the left.
apologies for having put anyone out, I am still finding my feet so I don’t believe I was being lazy but if you feel that way then that isn’t the intention.
301 Moved Permanently
1% of 5 000 is 50.You need to allow 100 losses theoretically before you lose your account.
You would lose your account in 10 losses with $500/trade
Read more: 301 Moved Permanently
You need to re-read what has been written.