Lot Size

Before beginning the discussion on lot size you need to be aware of the different type of accounts and how each handle the lot size calculation. When you opened your account you chose either a Standard or a Mini account. Mini accounts are noted with a 'm' after each currency symbol. When you choose a AUD/JPY chart if you see 'AUDJPYm' then you have a Mini account. If you see only 'AUDJPY' then you have a Standard account.

There is actually zero difference between the two accounts except for a decimal point.   The Mini accounts allows you to trade in the Micro region where the Standard account does not.

1 Standard Lot 100,000 (base currency)
1 Mini Lot 10,000 (base currency)
1 Micro Lot 1,000 (base currency)

During your order execution you can enter the lot size as X.X In a Standard account entering a lot size of 3.0 means you are opening the trade with 3 Standard lots and are contolling 300,000 units of the base currency. In your Standard account if you open a lot size of 0.4 then you are opening a trade with 0.4 Standard Lots or 4.0 Mini lots.

If you opened a Mini account and place a trade with a lot size of 3.0 it means you are opening a trade with 3 Mini lots and are contolling 30,000 units of the base currency.   If you happen to open a trade of lot size 0.4 then you are opening the trade with 0.4 Mini lots or  4.0 Micro lots and are controlling 4,000 units of the base currency.   By the same manner if you open it with a lot size of 50.0 then it is the same as opening the trade with 5.0 Standard lots or 500,000 units of the base currency.

Since our trading platform calculates everything in pips we need to know how much is each pip worth?  Knowing that value allows you to know how much you are putting at risk in your home currency with the current set Stop Loss.

Before calculating the Pip Value you need to understand the decimal points used for the currency in question.   It is either a two or four digit currency.   More information about decimal positions and pairs can be found here .

PIP Value Calculation

Currency Pair     X digits
Recent Quote
Position Size OF NEXT ORDER
CURRENCY YOU OPENED YOUR ACCOUNT WITH
 
Each Pip CHANGE IN PAIR PRICE IS WORTH x.xx YYY

Percent Of Account

The standard rule on any trade is to never risk more than 2% of your account.  Use the following calculator to help you identify what percent of your account is at risk.    The At Risk Calculator uses values from the PIP Value Calculation above to get the actual PIP Value specific to your account.

Account Balance
Stop Loss in PIPS
 
Percent of accout at risk X %

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