Hi!
Here is what I've constructed in Excel based on reading the Beginner's Q&A and on this site.
The calculation below is presented for a micro account:
INPUT
Account Size: $9000
Stop Size (pips): 50
Risk: 2% ($180)
1 lot size: 1000 units
Pip Value: $0,10/pip
Stop Size * Pip Value: $5,00
OUTPUT
Position Size: 36,00 lots
"Round Down" Position Size: 36,00 lots
True Leverage: 4:1
Resultant Pip Value: $0,40
In order to respect your MM you have to take the following position:
Leverage * Position Size: $36.000
The PIP value is: $3,60
The only thing I'm not sure of is the calculation for the PIP value... I have calculated it like this:
(Leverage * Account Size) / 10.000 or (4 * 9000) / 10.000 = $3,6
Is this correct or is the last calculation wrong? I have also attached the spreadsheet. If someone could check it out and verify that everything is OK, I'd be very thankful. I only plan to trade EUR/USD for now.
Thanks!
Here is what I've constructed in Excel based on reading the Beginner's Q&A and on this site.
The calculation below is presented for a micro account:
INPUT
Account Size: $9000
Stop Size (pips): 50
Risk: 2% ($180)
1 lot size: 1000 units
Pip Value: $0,10/pip
Stop Size * Pip Value: $5,00
OUTPUT
Position Size: 36,00 lots
"Round Down" Position Size: 36,00 lots
True Leverage: 4:1
Resultant Pip Value: $0,40
In order to respect your MM you have to take the following position:
Leverage * Position Size: $36.000
The PIP value is: $3,60
The only thing I'm not sure of is the calculation for the PIP value... I have calculated it like this:
(Leverage * Account Size) / 10.000 or (4 * 9000) / 10.000 = $3,6
Is this correct or is the last calculation wrong? I have also attached the spreadsheet. If someone could check it out and verify that everything is OK, I'd be very thankful. I only plan to trade EUR/USD for now.
Thanks!
Attached File(s)
MM_Spreadsheet.xls
26 KB

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