MT4 Trading basics
no.
it doesnt answer my question
are u saying that "VOLUME" on the ordering dialog box is the same as leverage.
If i choose 0.1 and my balance is $1000 how much (in terms of $) am i placing on that trade?
thats what i need to know for every trade i do
rafsystems: If i choose 0.1 and my balance is $1000 how much (in terms of $) am i placing on that trade?
In terms of what margin_used or margin_risked when stop_loss hit?
@rafsystems,
Hi rafsystems! This is how it works...
You place trades in your meta trader 4 terminal using size increments known as "Lots".
Example 1: 0.01 lots = "micro lots", 0.10 = "mini lots" and 1.00 lots = "standard lots"
Lets continue shall we? ;)
0.01 lots = 10 cents per pip (so if you placed a buy order of 0.01 lots and the market moves UP 1 pip your account equity increases by 10 cents $ 0.10 but your account balance remains the same until the order is closed with a win or loss.
0.10 lots = 1.00 (one dollar)
1.00 lots = 10.00 (ten dollars)
10.00 lots = 100.00 (one hundred dollars) (this means that every pip of movement going into profit or loss is adding or subtracting $100.00.) I hope you have a big piggy bank ;)
Also keep in mind that when you have a trade open, the market is using your account equity and when your trade is closed your account balance changes for better or worse. Also, be sure to use MONEY MANAGEMENT :) like a pro because I sense that you are one with my jedi powers AND because if you trade with too high a lot (10.00 lots) then you have a HIGH probability of being charitable and giving away your money if the trade ends in a loss OR you win and go off and buy a nicer car than what your neighbor drives with the profit.
Yes, I know I am the best ;) Now I am going to give myself a round of applause ;) jk n' hope this removes the question mark above your head.
Best of luck to you & thx for posting!
@ubzen: I am pretty sure that lot sizing is standard. The only thing that I have seen change is spread regarding different currency pairs. Please feel free to explain to me why I am wrong, if I am.
Thank you.
@ubzen: I am pretty sure that lot sizing is standard. The only thing that I have seen change is spread regarding different currency pairs. Please feel free to explain to me why I am wrong, if I am.
Thank you.
@ubzen: I will do as you instruct, BUT I will do it in the mean time. ;)
Thank you.
@WhooDoo22: Your 0.10 lots = 1.00 (one dollar) is Not-Correct when USD is the Base Currency, ex:USDJPY. This man still don't know how much money he's going to lose because we don't know his Stop_Loss.
It's also not correct when USD is not involved, for example, EURGBP, and also when USD is not the Account currency.
@WhooDoo22: you said that "0.01 lots = 10 cents per pip" but you have neglected to define what you mean by a pip ? for example, pip != point on a 5 digit Broker for Forex.
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Hi,
Im new to MT4.
Before using MT4 I was use to placing trades using actual price value. So if I had $1000 equity i want to place $50 on the USD/CAD pair for a Buy order.
I simply enter 50 as the value then set a stop and take profit value based on how much i want to lose/gain. So i set stop loss to $25 and take profit value to $50.
That made it easy to understand.
Now with MT4 you cant do anything like that. I just dont understand the "UNIT" or Volume thing. like what does 0.01 or 0.1 or 1 mean? When I choose 0.02 I dont even know how much of my equity I am actually putting on that pair trade.
For example if i choose GBP/USD and the rate is 1.5000
and i want to put just $100 on that trade (a new order) then what value do i put for the VOLUME on the PENDING ORDER dialog box??