lot size and making small money

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I'm using oanda and when ever i pick lot size i can't go above 0.05, it says i don't have enough money. I have set my balance at $1,000 50:1



When I buy the price moves very little (in cents) it takes a while to get a dollar.


it also says margin used is $120 and margin free is $880 (because of small lot size)


I also don't understand what 0.05 is supposed to be, I am used thinkorswim(ameritrade) and lot sizes were 10,000, 20,000, 50,000, 100,000 and 200,000. That is kinda more easy to understand.


Can someone explain these for me thank!

 
kopoy:

I'm using oanda and when ever i pick lot size i can't go above 0.05, it says i don't have enough money. I have set my balance at $1,000 50:1

When I buy the price moves very little (in cents) it takes a while to get a dollar.

it also says margin used is $120 and margin free is $880 (because of small lot size)

I also don't understand what 0.05 is supposed to be, I am used thinkorswim(ameritrade) and lot sizes were 10,000, 20,000, 50,000, 100,000 and 200,000. That is kinda more easy to understand.

Can someone explain these for me thank!

If you're not US citizen nor reside in US then my suggestion is change your broker to non-US based broker, preferably the one that offer leverage more than 1:100.

Here's an example:

Everywhere in forex world 1 standard lot is equal with 100,000 units.

For example the price of EURUSD is 1.23456. So if we want to buy 1 lot EURUSD we actually have to pay $ 123,456.-- ($ 1.23456 times 100,000).

Of course no one can not afford to buy that much, so the forex industry create what we called a leverage. Since your leverage is 1:50, to buy 1 lot of EURUSD you must pay $ 2469.12 ($ 123,456/50*1 lot). Well, unfortunately in this case you can only buy at 0.05 lot at 1:50 leverage, which is $ 123.45 ($ 123,456/50*0.05 lot). That also telling that the cost to buy 0.01 lot is "just" $24.69. :(

I have no idea exactly why you can't open more than 0.05 lots. You may have to ask Oanda to explain in detail. I assume - this is assuming, coz I don't have Oanda MT4 installed and don't have Oanda account - they may have some margin policy that prevent traders for making more trades once certain level has been reached. So since you already use 12% of your account, then you can not open more trades.

ThinkOrSwim's lot is actually misleading. They talk in lot while they calculating in units. So if you trade 100,000 lots, that's actually 100,000 units or just 1 standard lot. If you buy 10,000 lots, that's actually just 0.1 lot.

 

Thanks for responding.

In Oanda mt4, the lot size goes from 0.05 to 1

0.01, 0.02, 0.04, 0.05, 1, 2, 3 etc


So 0.05 lot size is 5000 units, which is small.



 
kopoy:

Thanks for responding.

In Oanda mt4, the lot size goes from 0.05 to 1

0.01, 0.02, 0.04, 0.05, 1, 2, 3 etc

So 0.05 lot size is 5000 units, which is small.

Same thing in any MT4, just type 0.06, or 0.13 or whatever.

:D

 

Wow I didn't thought that I could enter my own number, sigh... long day :D

thanks

 
kopoy:

Wow I didn't thought that I could enter my own number, sigh... long day :D

thanks

And in demo too, I have a demo which start with $ 150.-- and $ 999,999,999.-- .
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