hi all
not sure how to explain this ‘weird’ question I have in mind.
so lets say today at 12, I enter a trade purchasing 1 lot, which would result in a winning trade;
Now lets take the same scenario (before it happened), but the only difference this time would be that my capital is 100x larger, so I enter 100 lots instead, but same entry/SL/TP prices.
Will it still be a winning trade as if I would have entered 1lot?
or does higher lot size mean you might have some underlying changes and shifts in prices? (like longer time to execute maybe or higher spreads?)
to summarize, if 2 identical trades are taken at the exact time with exact entry/exit points but the only difference is the lot size, will the outcome be the same? (both wins or both loss)
and what if instead of 100lots one purchases 1000lots? (again, having a 10x capital as the one of the 100lots)
In theory it would make no difference from a retail trader’s perspective. And the interbank market from which your broker’s pricing is originated, is totally unaffected by such relatively small-sized transactions.
Which leaves your broker. A broker can apply controls such as spreads and prioritisations that can affect the price and order of filling, according to the status and history of the client, which may have some impact on market orders and stops.
But I think, from a practical point of view, this is not an issue for the average retail trader. If you ever get to the point where your trade size is so big that it would influence pricing (and that is not a negative influence) then you would most likely be trading on a different relationship with your broker or bank.
Hi lee, I reckon it would depend on your broker as manxx explained. Having said that, the liquidity in forex is so vast that I have traded £100 per pip and it was the same as trading £1/pip.
If the only difference was lot size, you’re fine, but if you keep the same lot size on a smaller account as the larger account, obviously on the smaller account you might get hit by that Margin call
glad to hear that.
even though I can not experience that myself (right now i cant even trade 100$ since its not even my 1%)
im sure it took lot of hard work to build the skill up to that level
@Dru-Zod yes im afraid once i go live my account will be hit with margin call a lot since here in the EU we’re stuck with 1:20 leverage
I’m currently using a micro account @ 1:50 leverage (I would probably go bigger, but U.S. doesn’t allow it), just keep your lot sizes small and it shouldn’t be an issue.
Yeah it took a lot of mistakes and chart time. Dont worry, you will get there but take your time. Theres no rush, the market is always there. Once you can control your emotions and follow your trading plan you will have the conviction to fund your account and trade large size. Your mindset changes from how much it is, to ‘it’s just 1%’.
thanks! will keep working on it
still a long way to go.
Actually what fears me most is not the trading itself, but more about which brokers are really thrust worthy. I mean i’ve been reading so much negative things about them cheating on users that im scared to ever trust a huge amount towards them (if i ever become that good).
@Dru-Zod thanks for the link it helps, and actually confirmed how much 1:20 leverage is limited. Since im looking into day trading, stop loss is usually around 5-10 pips. One trade at 1% risk and basically u’ve locked up most of your margin. so sad
