How to determine the lot so as not to get a margin call

The amount of lots (volume) in trading is not determined by leverage but by the amount of capital. The greater your capital the higher the trading lots you can use. The formula you can use to determine the number of lots,

normal lots

(capital: 10: 1000)

example:

Capital $ 100: 10: 1000 = 0.01 lot so if capital You are $ 100 and you are trading normally, so you can only do 1 open position in 1 pair using 0.01 lots.

extreme lots

(capital: 2: 1000)

example:

your capital is $ 100 and you want to trade extreme, then you can do the following calculation $ 100: 2: 1000 = 0.05 lot. so a capital of $ 100 if you want to trade extreme then you can open 1 transaction in 1 pair with lots 0.05.

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LEARN

Beginner ~ What is forex ? Forex is the abbreviation of foreign exchange. Which means making transactions buying and selling foreign currencies. An example of forex trading is buying Euros (major European currencies), while simultaneously selling USD (American currency), it can be abbreviated as EUR / USD. ~ Forex history : After the development of the internet all over the world, the forex market can finally be followed by almost all individuals, from entrepreneurs to housewives, young and old. The brokers also began designing forex so that they could be traded individually by retail. So now, from upper class people, to middle class people and students ... can get involved in the Forex market! Amazing isn't it !? ~ Trading time and hours Forex trading is open 24 hours a day for 5 days a week. However, forex trading time is divided into several sessions.

Leverage & Margin

Leverage is the leverage or loan from a broker given to a trader, so that the trader funds have greater purchasing power, for example, if there is a $ 100 fund using 1: 100 leverage, the $ 100 has a power equivalent to $ 10,000. If the leverage is 1: 500, then the $ 100 fund has the ability to make transactions equivalent to $ 50,000 or 500 times more than the nominal of the fund itself. Margin is a guarantee given to a broker every time a position is opened. The size of the margin is influenced by the leverage and the amount of trading volume (lots) opened by the trader. The margin calculation formula is: Leverage x Volume (Lot) x Contract Size. If we don't pay attention to margins, our trading account might get margin call. ============================= 1: 100 leverage means (1/100) x100% = 1 % leverage 1: 200 means (1/200) x100% = 0.5% leverage 1: 500 means (1/500) x100% = 0.2% leverage 1: 600 means (1/600) x100% =? leverage 1: 1000 means (1/1000) x 100% =? =========

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