A blog about trading and investing (stocks, ETFs, forex, crypto), with some outdoor activities.
How do you get that percentage when for 9 pips full margin on Oanda it's around 3.7%?btw. great trading lately
Full margin all depends on one's leverage settings and account value. If someone has say 20:1 (you can go up to 40:1 in the USA) leverage set and a $10,000 account balance that person can trade up to around 200,000 units on something like EUR/USD (the exact size changes with the currency rate). Therefore most people aren't going to have the exact same % on a trade unless they somehow have the same sized account and use the exact same size on that trade.Thanks! :)
I still don't follow.I was talking about leverage 1:50 which is Oanda's max ( I didn't know that in US you can go only up to 1:40)At 1:50 leverage 100 000 lot margin needed is 2458 right now, so 9 pips is 3,66%. For 1:40 leverage margin needed is 3073 so its 2.92% for 9 pips.
It might be 1:50 here also, I don't go that high though.I base my percentages off my account, not the trade.
So how is possible to get 5% on 9 pips on Oanda?
Ah, in doing the math for my original reply I forgot to mention I have a "cutoff" point. Even though my account has X amount in it I am treating it like it has less (Y). That "Y" number is my cutoff point, if I loose that much on my account I stop trading for good even though my account would still have money in it. Therefore, I took the dollar amount of my gain and divided it by my cutoff point. This limits my risk but allows me to trade larger sizes.Sorry for the confusion.
Heh, now I understand, sorry for being stubborn trying to understand, that's just me.
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