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Lots…How Many?

February 6, 2008

Hello Everyone,
I see a few people trading with Micro accounts and wondering how many lots they should trade with? Please note the following also apply for standard and mini accounts:

The easy way to find how many lots you can trade can be found out by simply considering the risk and not risking more than 3% of your equity in one trade.

For example if you have $1000 then 3% is $30. If you are trading micro with every pips worth 10 cent then If you SL is 100 pip away, you are risking $10, hence you can trade 3 micro lots on one trade.

As you start building up your account you can increase the lot size based on the above calculation. Also make sure you don’t risk more than 8-9% of your total equity at one time on all trades combined.

Hope this helps.

Cheers,
OzFx

Written by OzFx · Filed Under Updates