Calculating Lot Size - Help Required!

Hi all,

Suppose I have 500 CAD. How much lots of AUDUSD can I trade?

We suppose that 100% of money is being risked.

What's weird, is that when I try to calculate the lot size I can trade, the calculators don't ask for my leverage.

Also, could you please show me how to calculate it? I looked at the explainations on other websites, but they aren't exactly noob-friendly.

Thanks!

It depends on your stop.

The rule of thumb is I use is never risk more than 1% of your capital on any given trade.

So your full-stop out loss determines how many lots you can trade.

How many lots you can open has nothing to do with your stoploss. The broker doesn't care what your stop is. What matters is how much margin they require for you to open a given lot size.

Here's your formula (and yes you will need your leverage)

If trading a cross pair like Aud/Usd ($ equity * leverage / AUDquote / contract size)

So Aud/Cad is trading at 1.0100

Assuming your trading account is figured on standard lots (100,000 units) and assuming 100:1 leverage

500*100/1.010/100,000 = .49 lots

Well, I suppose there is a distinction between 'can' and 'should'.

Definitely agree there. But the OP stipulated 100% of account at risk. "Caveat Emptor" or maybe "Carpe Diem" would be more to his liking.

Hello guys,
I asked recently on the forum about how to calculate the number of lot I have at maximum. This is obviously an exercise of calculation to see how does the lots and mini lots work. I don't intent to burn my account in one trade.
I have 2 questions:
1, Say I have 500 CAD in my account. If my leverage is 200:1 and I trade EUR/USD, is the number of lot I can trade calculated in the following way:
(500 CAD * 200 (leverage)) /1.0844 CAD/USD = 92216 units = 0.92 standard lot
In other words, if I really go for the full 500 CAD, every pip the pair moves, I make 9.2 USD?

2, In metatrader 4, when typing in volume of the trade, can I type in things like 1.24, 2.21 or things like that? Like, the unit of standard lot followed by the number of mini and micro lots after the decimal points?
This is what I understood from the tutorials online. Therefore, if I put in, say, 3.24 on the volume, does it mean that I will trade 3 standard lots, 20 mini-lots and 4 micro-lots?

Thanks!

You can demo to find out how to properly size your account with you broker, and the leverage you are going to use is not advisable for someone who is starting out, 50:1 is the best between performance and account protection or even less depending on how long your timeframes are.

I use the below website to help me calculate how many lots based off my risk.

You can set a certain risk % or certain monetary value

http://www.earnforex.com/position-size-calculator