MetaTrader4 Volume & Leverage Question

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jwh7699
33
jwh7699  

Hi,

Using MetaTrader4. I have some questions on what Volume number to choose. If I had $200USD and wanted to put it all on USD/CHF currency pair, which Volume number would I choose and why?


Is there a certain Dollar amount when a trade goes from Micro (1,000 Units) to Mini (10,000 Units)? 

Or basically with a Leverage of 50:1 x $200USD = $10,000 = 1 Mini Lot

Leverage 5:1 x $200USD = $1,000 = 1 Micro Lot


I don't see an option for Leverage?

If the Leverage rate/charge by Broker is 3% and I'm working with $200USD, how much can I use for the trade and how much do I have to leave un-touched to satisfy the Brokerage Leverage people?

3% of $200USD ?

Or using a leverage of 50:1 = $10,000, 3% of $10,000 ? 

Thanks!!



whroeder1
17943
whroeder1  
jwh7699:

Using MetaTrader4. I have some questions on what Volume number to choose. If I had $200USD and wanted to put it all on USD/CHF currency pair, which Volume number would I choose and why?

I don't see an option for Leverage?

  1. Leverage has nothing to do with determining risk. It allows the trade.
  2. Leverage is determined by the broker. Of course there is no option.
  3. Risk depends on your initial stop loss, lot size, and the value of the pair.
    1. In code (MT4):
      1. You place the stop where it needs to be - where the reason for the trade is no longer valid.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.
      2. 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.)
      3. Do NOT use TickValue by itself - DeltaPerLot and verify that MODE_TICKVALUE is returning a value in your deposit currency, as promised by the documentation, or whether it is returning a value in the instrument's base currency.
                  MODE_TICKVALUE is not reliable on non-fx instruments with many brokers.
      4. You must normalize lots properly and check against min and max.
      5. You must also check FreeMargin to avoid stop out
      Most pairs are worth about $10 per PIP. A $5 risk with a (very small) 5 PIP SL is $5/$10/5=0.1 Lots maximum.

    2. Use a GUI EA like mine (for MT4): Indicators: 'Money Manager Graphic Tool' indicator by 'takycard' Forum - Page 6
jwh7699
33
jwh7699  
Thanks whroeder1 !!  I'll check out your EA.
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