I'm no good at Math, please help me here. | Forex Factory

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I'm no good at Math, please help me here.

  • #1
  • First Post: Jul 20, 2008 10:36am Jul 20, 2008 10:36am
say I have 50 USD on a 1:100 leverage account.

that means 5000 USD to play with. how big a lot size can that get me on a cross pair like GBPJPY? I need the detailed calculations listed here. assuming no minimum lots set by broker. appreciate any help I can get. Thanks.
Programming for a better future.
  • #2
  • Jul 20, 2008 10:41am Jul 20, 2008 10:41am
Quoting Zen_Leow
say I have 50 USD on a 1:100 leverage account.

that means 5000 USD to play with. how big a lot size can that get me on a cross pair like GBPJPY? I need the detailed calculations listed here. assuming no minimum lots set by broker. appreciate any help I can get. Thanks.
I'm too lazy to do them but if you want the answer without waiting, just use google. There are many brokers with detailed examples. If you can't find for gbpjpy, then use for gpbusd it is the same thing margin-wise. likewise if you want eurjpy then eurusd is also same margin... audjpy same as audusd... etc. reason is that your money is USD... you are controlling GBP, EUR, AUD... whatever... so 1% of 100,000€ is what in your USD? same goes for pounds but I can't remember the ascii code for the damn symbol.

also, just fy: pip value of ej, gj, aj, all same as uj... I think I have given enough info that you will see the patterns for both margin calculations and pip value calculations... but as I said, you can always use google.
  • #3
  • Jul 20, 2008 12:14pm Jul 20, 2008 12:14pm
What you do is put in an order for 1 Mil. - if it is rejected - subtract 1000, and repeat until it is accepted. If the order for 1 Mil is accepted, keep opening orders 1000 at a time till it is rejected. - Write these numbers down and put them some where you wont forget them, or else you got to do it again.
This is a lot easier than learning a bit of basic math. You can also maybe call your borker - or maybe use chat - and ask them to do the math and send it back to you.
Or just stay camped out on this thread an keep- hoping some kind soul wil post the answer for you (complete w/ calculations)
__________________

Quoting Zen_Leow
say I have 50 USD on a 1:100 leverage account.

that means 5000 USD to play with. how big a lot size can that get me on a cross pair like GBPJPY? I need the detailed calculations listed here. assuming no minimum lots set by broker. appreciate any help I can get. Thanks.
In trading, there is no bullshit. You either make money or you don't.
  • #4
  • Jul 23, 2008 7:05pm Jul 23, 2008 7:05pm
we are in the same both mate.I know that forex trading is not rocket science but can't still figure out how to make sense out of margin, leverage, lot size etc. I need somebody out there to explain to me especially how to apply this knowledge to my trading.Am such a thick head ! Musky thanks for putting up with me.
  • #5
  • Jul 23, 2008 7:49pm Jul 23, 2008 7:49pm
Try investopedia.com or babypips.com
  • #6
  • Jul 23, 2008 8:38pm Jul 23, 2008 8:38pm
Wow, either I'm not getting this question right, or this is a very easy one to answer

I'll assume your asking what I think you are asking and answer this.

This is assuming you have 100:1 leverage

For GBP/JPY
full 100k lot needs $2,000 in the account to cover the margin
a 10k lot needs $200 to cover the margin
a micro 1k lot needs $20 to cover the margin

So if you have $50 in your account at 100:1 that means that you can get up to 2 1k lots.($40)

Now most other pairs are half that for margin. (only $10 per 1k lots which is standard)

Ps. Some brokers (fxcm is one of them) will let you apply the standard margin rate of $10 per 1k lot even for the GBP/JPY pair. But most likely you will need $20 for a 1k lot of GBP/JPY
  • #7
  • Jul 24, 2008 1:43am Jul 24, 2008 1:43am
Contact your broker for this question. Your broker can answer your broker related questions a lot faster.

Good Luck
"To Be A Successful Forex Trader, You Need A Successful Forex Mentor."
  • #8
  • Jul 25, 2008 4:34am Jul 25, 2008 4:34am
Is the problem with math or with understanding math related to forex? If it is math, I have an excellent ebook on the subject of improving your math.

Shoot me a pm with your email address and request and I will hook you up.
"To Be A Successful Forex Trader, You Need A Successful Forex Mentor."
  • #9
  • Jul 29, 2008 10:05am Jul 29, 2008 10:05am
thanks for all the replies, I think I get it now. All I need to care about is USD. I was under the false impression that any contract is 100,000 units of the quote currency of the pair for each lot. that means if its gbpjpy, I have to calculate how much USD is needed to get 100,000 yen, before using that to buy gbp. of cos I got that entirely wrong.

and yes the answer is simple. I just had the concept of contracts all screwy. Thanks again guys.
Programming for a better future.
  • #10
  • Last Post: Dec 28, 2008 6:03am Dec 28, 2008 6:03am
Quoting CTGUY
Is the problem with math or with understanding math related to forex? If it is math, I have an excellent ebook on the subject of improving your math.

Shoot me a pm with your email address and request and I will hook you up.
Can u pls mail this link also to me too ?
[email protected]

thanks in advance.
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