Money Management applied to cross currency pairs

Hello everybody,

Can you let me know where I can find an Excel model that calculates the position size when trading cross currency pairs? I am currently playing with a micro account in USD.

I was looking for something similar to the model provided by Dial in his money management post (great post, Dial!); however those calculations apply only to XXX/USD pairs if I remember well.

Thanks a lot!

Cheers

Morelli

There are a few threads already started about this just do a search.

It seems to me the only difference is the pip value for the calculation. All pairs ending in USD are $10 per standard lot pip value. Ther calculation for the crosses is:

A pip is calculated by dividing the smallest increment for a given currency by the current exchange rate.
Using the GBPJPY as an example you would get: 0.01/233.18 = 0.0000428
This is expressed in terms of the base currency which in this case is the GBP. To convert to US Dollars you must multiply by the GBPUSD exchange rate which is currently 1.9592.
0.0000428 x 1.9592 = 0.0000838
To convert this to a standard lot you multiply by $100,000
0.0000838 x $100,000 = 8.38
As a general rule most pairs not ending in USD are around 8 pips and all pairs ending in USD are 10 pips. The only big exception to this is the EURGBP. This rule of thumb only applies to the majors

Hope this helps...