Intraday call
- Thread starter kaushal.shah
- Start date
hello kausal i have one question for the forex
what kind of acount you have right now which demo i am using i got 10$ for one pip .
are you geting same amount in your forex acount or you geting one 1$ for one pip .
if i want the 1$ per pip acount than what should be the first payment. and how many unit we can buy if i start my acount with 100 $ if supose i alredy bought one unit so can i abel to buy another lot in same many or how many unit i can buy plz tell us it will be great help for new bee like me thank.
what kind of acount you have right now which demo i am using i got 10$ for one pip .
are you geting same amount in your forex acount or you geting one 1$ for one pip .
if i want the 1$ per pip acount than what should be the first payment. and how many unit we can buy if i start my acount with 100 $ if supose i alredy bought one unit so can i abel to buy another lot in same many or how many unit i can buy plz tell us it will be great help for new bee like me thank.
Hi Sumit,
It's actually a very good question that you've asked. This in a board sense is called 'Risk Management'. What's 1 pip's value depends on what 'kind' of account you're having with your broker. You're getting/losing US$10 per pip's movement because most probably you're having a (demo) 'Standard' account.
Knowing this is REALLY important because this makes a HUGE difference of your survival in the Forex market = how long would your account last - 3 months? 1 year or 30 years & more?
Value of pip depends DIRECTLY on your account type because 1 LOT currency purchased in different accounts would have different values for 1 pip movement!!
There are three types of accounts: 1) Standard 2) Mini and 3) Micro account.
So, there are three types of lots (by size):
Standard lots = 100 000 units
Mini lots = 10 000 units
and micro lots = 1000 units.
With every Standard lot traded (100 000 units) a trader risks to lose (or looks to win) $10 per pip.
With every Mini lot traded (10 000 units) a trader risks to lose (or looks to win) $1 per pip.
With each Micro lot (1000 units) - $0.10 per pip. (= 10 cents only)
In Forex traders always search for the most efficient ways to limit risks or at least lessen risk effects. For this purpose various risk management and money management strategies are created.
It is impossible to avoid risks in Forex trading. In order to limit risks traders use methods of setting protective stops, trailing stops. Traders with the best risk management strategy earn the largest profits in Forex.
Now, YOU have to decide, which type of account would suit YOUR Risk.
Suppose, you've got US$ 2,000 in your trading account.
Now, the maximum risk recommended on any single trade is 3%.
3% of US$ 2,000 = US$ 60. This means, you SHOULD not lose more than $60 in one trade of you have $ 2000 in your account.
Example: On your chart, you see a possible long trade with a stop loss of 50 pips.
Now, you have to decide how many lots or units of the currency you need to purchase so that even if the market moves against you by 50 pips (trade is loser), you would lose only US$ 60!!
Every trades might have a stop loss of 20 or 50 or even 100 pips of stop loss - it doesn't matter. Personally for me, some trades are with a 50 pips SL and some are even with 150 pips SL BUT my RISK is always the same = 3%.
One more secret I'll tell you = before putting a buy or sell order, ask yourself = How much can I afford to lose if my decision is incorrect?
happy trading :clapping:
It's actually a very good question that you've asked. This in a board sense is called 'Risk Management'. What's 1 pip's value depends on what 'kind' of account you're having with your broker. You're getting/losing US$10 per pip's movement because most probably you're having a (demo) 'Standard' account.
Knowing this is REALLY important because this makes a HUGE difference of your survival in the Forex market = how long would your account last - 3 months? 1 year or 30 years & more?
Value of pip depends DIRECTLY on your account type because 1 LOT currency purchased in different accounts would have different values for 1 pip movement!!
There are three types of accounts: 1) Standard 2) Mini and 3) Micro account.
So, there are three types of lots (by size):
Standard lots = 100 000 units
Mini lots = 10 000 units
and micro lots = 1000 units.
With every Standard lot traded (100 000 units) a trader risks to lose (or looks to win) $10 per pip.
With every Mini lot traded (10 000 units) a trader risks to lose (or looks to win) $1 per pip.
With each Micro lot (1000 units) - $0.10 per pip. (= 10 cents only)
In Forex traders always search for the most efficient ways to limit risks or at least lessen risk effects. For this purpose various risk management and money management strategies are created.
It is impossible to avoid risks in Forex trading. In order to limit risks traders use methods of setting protective stops, trailing stops. Traders with the best risk management strategy earn the largest profits in Forex.
Now, YOU have to decide, which type of account would suit YOUR Risk.
Suppose, you've got US$ 2,000 in your trading account.
Now, the maximum risk recommended on any single trade is 3%.
3% of US$ 2,000 = US$ 60. This means, you SHOULD not lose more than $60 in one trade of you have $ 2000 in your account.
Example: On your chart, you see a possible long trade with a stop loss of 50 pips.
Now, you have to decide how many lots or units of the currency you need to purchase so that even if the market moves against you by 50 pips (trade is loser), you would lose only US$ 60!!
Every trades might have a stop loss of 20 or 50 or even 100 pips of stop loss - it doesn't matter. Personally for me, some trades are with a 50 pips SL and some are even with 150 pips SL BUT my RISK is always the same = 3%.
One more secret I'll tell you = before putting a buy or sell order, ask yourself = How much can I afford to lose if my decision is incorrect?
happy trading :clapping:
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