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Lot size and margin call

  • #21
  • Apr 12, 2012 11:01am Apr 12, 2012 11:01am
Quoting forextrini1

You could find stuff fundamentally wrong with every post pipmutt, but thats your opinion.

you guys are some sort of forex geniuses
It's not opinion or genius, it's just plain common sense.

You're offering advice about trade size relative to account size, it's pure nonsense.


Quoting forextrini1

With $100 in a mini account i would trade no more than 1000 units on any trade, once you got up to around $250 you could trade 10000 units, and could probably hold that trade for several days....It is my view that A $2500 account should be trading 10000 units, if that turn you can hold the trade for months if you have to and never get a margin call.
  • #22
  • Apr 16, 2012 5:56am Apr 16, 2012 5:56am
Quoting pipmutt
It's not opinion or genius, it's just plain common sense.

You're offering advice about trade size relative to account size, it's pure nonsense.

blah blah blah blah blah! bloody pip MUTT! my nonsense works!!! it has everything to do what margin calls. i dont give a shit what u think! my live account is up 28% and I've never had a loosing trade, say what u will ROOKIE!

Post hidden because pipmutt is on your ignore list. hahahaha!!!
Stop thinking like a retail trader
Forextrinitrader3.0 Profit This Month: na
  • #23
  • Apr 16, 2012 6:14am Apr 16, 2012 6:14am
Quoting forextrini1
blah blah blah blah blah! bloody pip MUTT! my nonsense works!!! it has everything to do what margin calls. i dont give a shit what u think! my live account is up 28% and I've never had a loosing trade, say what u will ROOKIE!
lol, well according to you.....


"With $100 in a mini account i would trade no more than 1000 units on any trade, once you got up to around $250 you could trade 10000 units, and could probably hold that trade for several days . its way over what I should use and i think that is why many people with mini accounts just loose all their money. It is my view that A $2500 account should be trading 10000 units, if that turn you can hold the trade for months if you have to and never get a margin call....."


....which by your math advises no more than 1000 units on a $100 account, 10,000 units on a $250 account, and the same 10,000 units on a $2500 account!

Apart from being a totally ridiculous way to work out trade size and risk, it doesn't actually make any sense!


Quoting forextrini1

Post hidden because pipmutt is on your ignore list. hahahaha!!!
I'm thankful for small mercies, at least you won't be tempted to reply and make yourself late for school!
  • #24
  • Apr 16, 2012 6:16am Apr 16, 2012 6:16am
Quoting pipmutt
lol, well according to you.....


"With $100 in a mini account i would trade no more than 1000 units on any trade, once you got up to around $250 you could trade 10000 units, and could probably hold that trade for several days . its way over what I should use and i think that is why many people with mini accounts just loose all their money. It is my view that A $2500 account should be trading 10000 units, if that turn you can hold the trade for months if you have to and never get a margin call....."


....which by your...
is it just me or wherever u go theres alwaaaays a 'discussion' going on

i stalk people yes
Have I got something on my face, SOLDIER?
  • #25
  • Apr 16, 2012 6:20am Apr 16, 2012 6:20am
Quoting bumapatria

is it just me or wherever u go theres alwaaaays a 'discussion' going on
Could it be because it's a discussion forum and posts like that can't go unchallenged and without comment? Don't tell me you can't find anything wrong with this jokers posts and ideas!


Quoting bumapatria

i stalk people yes
I'm flattered! See you in the next 'discussion'......with your >9,000 posts since Aug '11 I feel sure our paths will cross again!
  • #26
  • Apr 16, 2012 6:53am Apr 16, 2012 6:53am
Quoting forextrini1
i dont give a shit what u think! my live account is up 28% and I've never had a loosing trade, say what u will ROOKIE!
Great! this is the perfect approach. You will be a billionaire in a couple of years max. Please take care of the starvation around the world. And if you can help the peace process by showing the central bank the way to fix this mess... we need your help mate! with those numbers you can do it!!!
  • #27
  • Jun 11, 2012 7:22am Jun 11, 2012 7:22am
Thank you very much for all your answers. I forgot to check this thread :-(

I'll go through all your replies! Thanks a lot to everybody!!
  • #28
  • Jun 11, 2012 2:16pm Jun 11, 2012 2:16pm
Need help and suggestion.

If i had $200 in my account to start trading, how many % percent that i should use for open trading ? 10% or 5% or 2.5% or 1.5% or 1% or 0.5% or 0.1% just to maintain and avoid early MC?
You are a Fun-Loving Trader (I do better when i have fun)
  • #29
  • Jun 12, 2012 12:25pm Jun 12, 2012 12:25pm
Quoting tuakblues
Need help and suggestion.

If i had $200 in my account to start trading, how many % percent that i should use for open trading ? 10% or 5% or 2.5% or 1.5% or 1% or 0.5% or 0.1% just to maintain and avoid early MC?

The easy way. How much are you willing to loose? remember that you should make more then you loose... so let's say that 10% per month is good as a profit, it would be reasonable to stop trading at -5% for the month, right?

ok... now, how many trades do you intend to take in a month, more or less, unless you reach a target? 1 per day? that is 20 trades... 5/20=0.25
In my example, 0.25% a trade is "reasonable"
  • #30
  • Jun 12, 2012 6:43pm Jun 12, 2012 6:43pm
Hello dvarrin.

Sorry to make some noise in your thread but some guys make me laugh a lot and this guy "pipmutt" is in my top list.

Yes itīs amazing.
"Originally Posted by bumapatria
is it just me or wherever u go theres alwaaaays a 'discussion' going on"

LOL
  • #31
  • Jul 19, 2012 4:15pm Jul 19, 2012 4:15pm
I have 1800$ on a mini account.

Applying an average risk per trade of 3%, I would risk about 60$ per trade. My surprise was that I couldn't even open two such trades simultaneously. i don't understand why. 60$ is nothing for a balance of 1800$. What is the problem in having two trades that will lose maximum 180$? Is it so because this is a mini account?
  • #32
  • Jul 19, 2012 4:50pm Jul 19, 2012 4:50pm
Quoting dvarrin
I have 1800$ on a mini account.

Applying an average risk per trade of 3%, I would risk about 60$ per trade. My surprise was that I couldn't even open two such trades simultaneously. i don't understand why. 60$ is nothing for a balance of 1800$. What is the problem in having two trades that will lose maximum 180$? Is it so because this is a mini account?
60 per trade? meaning the spread alone costs you 60?

If so then your risking way more than 3% per trade
Money never sleeps...
  • #33
  • Last Post: Jul 20, 2012 7:49pm Jul 20, 2012 7:49pm
Quoting inpatient
60 per trade? meaning the spread alone costs you 60?

If so then your risking way more than 3% per trade
???

Quote
Yet an other question
I have 1800$ on a mini account.

Applying an average risk per trade of 3%, I would risk about 60$ per trade. My surprise was that I couldn't even open two such trades simultaneously. i don't understand why. 60$ is nothing for a balance of 1800$. What is the problem in having two trades that will lose maximum 180$? Is it so because this is a mini account?

The only thing that I can think of would be the leverage setting being low meaning more of your capital is tied into the margin. Saying you risk $60 is too vague to answer your question. What needs to be stated is the lot size to trade and SL risk that will give you the $60 which represent 3%.

For example a scalper can risk $60 aswell, their SL value would be less than a swing or longer trader therefore the the lot or position size is greater. In this case it is the size of the position that determines the amount of margin you put up in reflection of the leverage. Whilst you know your protected to a 3% loss or $60, the system calculates the margin

I would look into that and see if you can adjust the leverage higher as you could be trading with low leverage, which really is not a problem unless like you state you are having issue opening multiple orders.

The bottom calculation can be used to demonstrate margin further

Margin = Units X Current price X leverage

If you were trading a $10000 account and want to buy 1 standard lot (100,000 units or approx $10 per pip) of the EUR/USD at the current price of say 1.2 then at;

a) 100:1 leverage (.01) you would have the following margin requirement

100,000 x 1.2 x .01 = $1200

b) 20:1 leverage (.05)

100,000 x 1.2 x .05 = $6000

So you can see that if you had $10000, in a) you would have $1200 locked up and $8800 free to open other positions and in b) you would have $6000 locked up and therefore could not open another position of the same size irrespective of the fact that you are only going to risk X amount of $. You would have to open a smaller position which may impact on your trade parameters.

Hope this has helped.

RT
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