Correlation between leverage and lots size...

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Murat Yazici
1285
Murat Yazici  

Hi,

‌‌I am confused and unsure my idea about correlatio between leverage and lots size.

I‌f I have 1:100 leverage and I open 2 lot in x pair, what is the lots size when I have 1:200 leverage? 

2‌ x 2 = 4 lots?

S‌orry, maybe it is very simple however I am comfused.

M‌urat

whroeder1
17945
whroeder1  
Murat Yazici: am confused and unsure my idea about correlatio between leverage and lots size.
  1. There isn't any. Leverage is your brokers stop loss, i.e. half your account balance.
    • You place the stop where it needs to be - where the reason for the trade is no longer valid. E.g. trading a support bounce the stop goes below the support.
    • Account Balance * percent/100 = RISK = OrderLots * (|OrderOpenPrice - OrderStopLoss| * DeltaPerLot + CommissionPerLot) (Note OOP-OSL includes the SPREAD, and DeltaPerLot is usually around $10/pip but it takes account of the exchange rates of the pair vs. your account currency.)
    • Do NOT use TickValue by itself - DeltaPerLot
    • You must normalize lots properly and check against min and max.
    • You must also check FreeMargin to avoid stop out
attila.okcu
126
attila.okcu  
Murat Yazici:

Hi,

‌‌I am confused and unsure my idea about correlatio between leverage and lots size.

I‌f I have 1:100 leverage and I open 2 lot in x pair, what is the lots size when I have 1:200 leverage? 

2‌ x 2 = 4 lots?

S‌orry, maybe it is very simple however I am comfused.

M‌urat

If you have 1.000 $ in your account, you can trade 100.000 $ at most with 1:100.‌

If you have 1.000 $ in your account, you can trade 200.000 $ at most with 1:200.‌‌

Yes ... so simple.‌

If the base currency is not USD, then you have to calculate‌ the amount of the base currency for the current level of the price.

Let's take EURUSD and assume that it is 1,06 now,

Again ...‌

‌If you have 1.000 $ in your account, you can trade 100.000/1,06 € at most with 1:100.‌

If you have 1.000 $ in your account, you can trade 200.000/1,06 € at most with 1:200.‌‌

Murat Yazici
1285
Murat Yazici  
Thank you for information!
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