Friday, July 6, 2012

Trades for 7-6-12

Forex: 1 trade for a total of +5.28%

8 comments:

FX said...

How do you get that percentage when for 9 pips full margin on Oanda it's around 3.7%?

btw. great trading lately

StockHunter said...

Full margin all depends on one's leverage settings and account value. If someone has say 20:1 (you can go up to 40:1 in the USA) leverage set and a $10,000 account balance that person can trade up to around 200,000 units on something like EUR/USD (the exact size changes with the currency rate). Therefore most people aren't going to have the exact same % on a trade unless they somehow have the same sized account and use the exact same size on that trade.

Thanks! :)

FX said...

I still don't follow.
I was talking about leverage 1:50 which is Oanda's max ( I didn't know that in US you can go only up to 1:40)
At 1:50 leverage 100 000 lot margin needed is 2458 right now, so 9 pips is 3,66%. For 1:40 leverage margin needed is 3073 so its 2.92% for 9 pips.

StockHunter said...

It might be 1:50 here also, I don't go that high though.

I base my percentages off my account, not the trade.

FX said...

So how is possible to get 5% on 9 pips on Oanda?

StockHunter said...

Ah, in doing the math for my original reply I forgot to mention I have a "cutoff" point. Even though my account has X amount in it I am treating it like it has less (Y). That "Y" number is my cutoff point, if I loose that much on my account I stop trading for good even though my account would still have money in it. Therefore, I took the dollar amount of my gain and divided it by my cutoff point. This limits my risk but allows me to trade larger sizes.

Sorry for the confusion.

FX said...

Heh, now I understand, sorry for being stubborn trying to understand, that's just me.

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