Money-Management Microlots - help! :)

solved.

If you want to risk no more than 2% of your $500 account then your risk per position is about $10. But to find out the leverage you'll need you have to know your stop-loss levels. If you have $10 to risk and your stop-loss is 10 pips on EUR/USD, then you can handle $1/pip, which is achieved on mini-lots (0.1 standard lot or 10,000 units). To buy 10,000 units of EUR/USD with 1:100 leverage you'll need about $127.00 of margin, to do the same with 1:200 leverage you'll need just about $63.50 and so on. I hope it's easy to understand.

Use this...

Enter your equity.

Enter the Stop Loss (20, 30, 50 PIPS).

Enter the risk that you are willing to take on each trade. And the reward... Currently it is set at 2:1

It will tell you exactly what Lot Size to trade.

Good luck

Thank you very much guys!

I would prefere to take 1:50 or 1:100 Leverage and 0.01 lot per trade and would have 10-30 trades in the market inclusive the hedging positions.
So you can have also 3 x 0.01 EURUSD, 1 x 0.01 EURJPY, 2 x 0.01 USDCHF and so on...

My be you've time to read this:
http://www.babypips.com/school/money_management.html
Forex Training Class Lessons in 13th Grade: Money Management

 

1. Money Management
2. Drawdown and Maximum Drawdown?
3. Don't Lose Your Shirt
4. Risk to Reward
5. Summary of Money Management

Hope it helps in make up your mind.

FXcube

obvious answer: if you gotta ask you shouldnt be trading it.

quite truthful not to be mean.

I started with 500USD account and I was having 10USD to risk per trade, I was able to afford 20 pips SL by buying half mini lots (0.05) with 1:100 leverage.