OK, back again - yes I think that's what I do lol
So, say I had $5000 in my account (I wish)...
Putting on 5 new trades using 2% equity on each at 1:100 leverage.
Each trade would be 10,000 units or 0.1 lot.
For my /USD pairs that would equate to $1 a pip, for USD/ pairs slightly less.
If all my initial stop losses were at 100 pips, theoretically I could lose just under $500 or 10%. However, more often than not, my initial stop losses would be far less than that in total although individually on occasion it could be more.
As the trades progress and stop losses tightened, so does the risk.
I hope this explains a little better.
Kind Regards
Steve
So, say I had $5000 in my account (I wish)...
Putting on 5 new trades using 2% equity on each at 1:100 leverage.
Each trade would be 10,000 units or 0.1 lot.
For my /USD pairs that would equate to $1 a pip, for USD/ pairs slightly less.
If all my initial stop losses were at 100 pips, theoretically I could lose just under $500 or 10%. However, more often than not, my initial stop losses would be far less than that in total although individually on occasion it could be more.
As the trades progress and stop losses tightened, so does the risk.
I hope this explains a little better.
Kind Regards
Steve
DislikedSteve,
I don't quite get it (sorry: ). Does that means that you trade a fixed number of lots (equivalent to 2% of your equity per pair) regardless of your s/l size?Ignored