is it possible to trade in forex with $1000 and a leverage of 1 pip to $1?
with a money management of 2% risk trade? 20 pips including spread?
with a money management of 2% risk trade? 20 pips including spread?
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Dislikedis it possible to trade in forex with $1000 and a leverage of 1 pip to $1?
with a money management of 2% risk trade? 20 pips including spread?Ignored
DislikedI don't know why everyone over complicates money management
Lots = Account Equity * RiskPercent / StoplossInPips / PricePerPip
So in your case
Lots = 1000 * 0.02 / 20 / 1.00 = 1 lot
So you can trade with 1 mini lot at 2% of your account for 20 pip stoploss and be sure you are not risking more that 2% on the trade.Ignored
DislikedThis is correct (as always Scott.
I think it should be pointed out that the stop size should be determined on its own and then inserted into the equation. The OP has decided his stop amount like this:
Stop loss = Account equity * Risk per cent / Price per pip / Stoploss in Pips = 20
He has fit his stoploss to fulfill the correct equation.Ignored