Using 1 Million dollar on a trade

How much will 1 pip be if 1 million dollars is used and it goes up 1 pip on the eur/usd??

I’m trying to calculate that value, but I’m coming up with weird numbers. Looking to see if its worth risking a Million USD.

I have a few questions to be answered before I can calculate it.

  1. R u risking an account worth 1 million or is that a portion of the account. If that is the account what portion of it are you risking.

  2. Size of ur stop or how many pips u are willing to risk.

I think that’s all I need, anyways get back to me on that one.

if you had a million in you account then you would only want to risk about $10,000 per trade so I’m assuming that you have alot more than a million. And you would have a standard account that means that 1 lot would =$10,10 lots=$100, 100 lots=$1,000, 1,000 lots= $10,000, 10,000= $100,000, 100,000lots= $1,000,000. So if you wanted 1 pip to equal $1,000,000 you would have to play 1,000,000 lots. I think that is what you are getting at, the other way I see your question is “how much would 1 pip be worth if I had a million dollars in my account?” That answer is $10. Hope this helps I know Shadow can be a bit of a blow hard at times. lol

Mmmmmm I�m not too sure where these other guys are coming from???:confused:

Easy example using 1.33 as spot

Sell 1mio usd @ 1.33 = 751,879eur which you have bought
Sell 751,879eur @ 1.3301 = 1,000,075 which you now receive and are flat eur

[B]So 75usd per tick[/B]
Simple as that!!!

Buy the 1mio usd @ 1.3301 = 751,823eur
Profit 56eur which converted back at 1.33 is 75usd

Note: because you are not trading the base ccy pnl per tick is not linear and will change with spot which could explain you confusion

How do I become a senior member � Post 100 useless posts?

Now now guys lol

Take it easy :smiley:

Eh no worries, BTW thanxs for having my back hobbit!:wink: It actually got me kinda upset, more than expected but I had the time to meditate on it. The thing is that I have a problem of letting things go, and this experience has helped me alot, so I don’t mind, in fact I kinda thank stucros for being a prick.

Have a good one eh!

This is a real stupid thread. It’s a joke?


Not quite sure what’s going on here either - if this is a joke - I don’t get it.

Anyway - it’s something I never thought about before - a $1 000 000 trade that is. Interesting.

Now I ask myself - if I HAD $1 000 000 in the bank would I be trading (for me that’s about R7 000 000 ZAR - that’s a lot of ZAR - just by leaving it the bank I could make about R600 000 ZAR per annum in interest alone. Edit: on second thought that’s not so great - on a monthly basis that pretty much just covers my mortgage and vehicle repayments - no jokes - now you know why I trade forex for a living now)!

I sure hope to know the answer to the above question one day!

Anyway - the way I trade - it would go like this (EUR/USD):

First - the capital would have to be $10 000 000

1 lot = $50 SO that would buy 20 000 lots.
The spread is 3 PIPs and the PIP value is $1 so immediately my broker would make $60 000 and I would be $60 000 in the red off the bat.
After that each tick would equal $20 000.

Now if that were the DAX then check this out:

The spread is 3 ticks and the PIP value is $0.5 so the initial trade would go like this:

1 lot = $50 SO that would buy 20 000 lots.
The spread is 3 ticks and the PIP value is $0.5 so immediately my broker would make $300 000 and I would be $300 000 in the red off the bat.
After that each tick would equal $100 000 on the DAX (1 tick = $5) - and the DAX can easily move 50 - 100 points intraday (I have seen it move by 250 - 300 points in one day on two occasions in the last 30 days or so) so let’s just say it moved 25 Points on a bad day - that would be equal to $2 200 000 net profit and it can move those 25 Points in a half an hour sometimes - OH MAN OH MAN OH MAN!!!

Then of course there is Silver: 1 Tick = $10.

Now on the other hand - if the trade described above were to go against you - it would take a ‘man of steel with titanium testicles’ to sit and watch it go down! Here’s a thought: where would you put your stop loss!!!

If it went in your favour though - like it did yesterday - put it this way - if I had this kind of money yesterday I would have made $3 900 000 on just one of my trades which lasted about an hour - AND I bailed out too quickly - it still moved about another 50 points after I took profit.

This begs some more interesting questions (who would of thought that a thread like this could provoke so many thoughts):

First of all - on mini accounts - do you think that the majority of retail brokers would accept this kind of order? I know they say no maximum deal BUT I don’t think they expect a single trade of $1 000 000 coming from the likes of us (me) on mini accounts? I mean to say - are brokers obliged to accept the order? I can just see it now: ‘Hey Fred - come over here - is there a problem with our system - this order says that this guy wants to buy 20 000 lots of DAX - can that be right?’!!!

Second - if they did accept the order I wonder if I would EVER be able to log into my trading platform while the trade was going in my favour (I can just see the random disconnects now)!

Third - if you were EVER in doubt that brokers ‘spike’ the prices to catch stops then just try this trade - that’s all the confirmation you’ll ever need!

And can you imagine the ‘ssslllliiiiippppppaaagggge’ if you were using a trailing stop!

Anyway - I have an idea - why don’t you wire me the $10 000 000 and leave it with me for a day :smiley: !

If it’s only $1 000 000 then that’s OK too - just my commission will have to be higher!



(Oh - and by the way - I’m ALREADY a ‘Senior Member’ just in case you were thinking of commenting on my post)!!!

I support what dpaterso said above. If you had one million in loose change :smiley: there are better things to do with the money, retail forex not being one of them :frowning: . If you are after a quick buck just remember it cuts both ways and the odd are so stacked against you that I would honestly consider it to be suicide :eek: to trade retail with such capital at stake.
Pip value depends on what currency cross you’re trading. I’m just too lazy :stuck_out_tongue: to go through the details for all the pairs available.

The only information missing is the stop size in pips.

So let’s assume 80 pip stop.

EUR/USD is $1 pip value, so:

(1,000,000/80)*1 = $12,500 per tick with 80 pip stop.

200 pip stop is $5,000 per tick.

Sorry guys I got it backwards I guess I didnt see the pair he was trading, please dont hate me cuse Im beautiful. As for all these post. I wounder if you could place that kind of a trade would you see a small move in your direction for just a few minutes or not? If not then how much would you need to make the market move in your direction?