Just Starting - General questions
- Thread starter stfarm
- Start date
Steve,
You posted this thread. This shows your motivation. You are giving right now.
The market opens soon at FXCM.
Good Trading to you.
You posted this thread. This shows your motivation. You are giving right now.
The market opens soon at FXCM.
Good Trading to you.
Ok, here is another question I just got while reading another post.
Let's assume I have a mini account with $2000.00 in it.
I am really confused about how much I have to buy to make money.
I would not plan to put all $2000.00 in just one trade, specially not my first one. So I was thinking I use $100.00, but how much would that buy me?
With a leverage of 100:1, I guess 10,000? Does that mean, if I make 10 pips, that would be $10.00, or $1.00 ?
Is that kind of leverage even given on an account that small? And do I have to deduct the pip spread (commision) from those profits? Meaning I would only make 7 pips on a 3 pip spread?
My head is hurting from all that over information.......
Let's assume I have a mini account with $2000.00 in it.
I am really confused about how much I have to buy to make money.
I would not plan to put all $2000.00 in just one trade, specially not my first one. So I was thinking I use $100.00, but how much would that buy me?
With a leverage of 100:1, I guess 10,000? Does that mean, if I make 10 pips, that would be $10.00, or $1.00 ?
Is that kind of leverage even given on an account that small? And do I have to deduct the pip spread (commision) from those profits? Meaning I would only make 7 pips on a 3 pip spread?
My head is hurting from all that over information.......
Forget about the "PIP SPREAD"
The price you buy is the price you pay, and the price you sell is your net price.
A 3 PIP spread just means you need to make 3 PIPS to get out even. If you pay the offering , for example 1.2718 in EURUSD for example to get in, when the market is 1.2715 -1.2718, this means to get out even the market would have to rise to 1.2718 - 1.2721.
It's really that simple.
The price you buy is the price you pay, and the price you sell is your net price.
A 3 PIP spread just means you need to make 3 PIPS to get out even. If you pay the offering , for example 1.2718 in EURUSD for example to get in, when the market is 1.2715 -1.2718, this means to get out even the market would have to rise to 1.2718 - 1.2721.
It's really that simple.
If you set your platform at 400:1 (not that you will EVER use it) then a mini at FXCM uses 25 bucks of your 2k
A PIP is still worth a buck for each mini...1mini=1buck
Now I know you freaking out....but its the truth...(I know how you are thinking Steve and I have presented some information in a controversial way perhaps...but you can decide how to look at the "thing")
I have not recommended anything or using anybody. The comments that I make in this thread are subject to disagreement.
Michael B.
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A PIP is still worth a buck for each mini...1mini=1buck
Now I know you freaking out....but its the truth...(I know how you are thinking Steve and I have presented some information in a controversial way perhaps...but you can decide how to look at the "thing")
I have not recommended anything or using anybody. The comments that I make in this thread are subject to disagreement.
Michael B.
6) Advertisements and solicitations of any kind are strictly prohibited unless you are a paying site sponsor. As a person who does not represent one of our site sponsors, you are not to solicit our members with any type of commercial offer, or advertise your business through your public posts, private messages, profile page, or file attachments. This includes, but is not limited to, posting your phone or fax number(s) and posting any URLs or hyperlinks to your commercial web site(s) or email account(s). Elite Trader and its agents may remove or edit any posted content, without prior notice, that contains unauthorized advertisements or solicitations. Elite Trader may, without prior notice, immediately terminate your membership upon discovery of any unauthorized advertising or solicitation.
I am sorry Michael if I do not understand this right away.
let me try to recap.
One lot = 10,000 ?
Case scenario:
I buy 10 (lots) (100,000) EURUSD on 1.2915, get out at 1.2925
if I have 400:1, that would be 40,000,00??
I just made 10 pips, 10 bucks, yes?
Ahhhh, this is so confusing!
Maybe I should stay in programming.
In a mini account 1 lot = 10,000 units or 25 bucks of margin at 400:1 at FXCM.
Now in the FX circle when you speak about 1 lot it generally means 100,000 units. That is the professional language.
Now at other dealers a lot can mean a mini....then at some dealers there are sublots (also known as base 10) which are 1k units...and then again at some dealers you think in units and they offer trade tickets with the flexability of trading in one unit increrments. Please be advised that sublots can also be mini's...it is dealer dependant.
steve...when speaking with somebody about Forex it is generally acceptable to represent 1 lot to be equal to 100, 000 units...now if you are speaking with somebody that trades at the same dealer as you...then you can re-translate. I do not want to confuse you and I am aware of FXCM and how they are. I freely can speak about FXCM as they are a sponsor here, and I am sure you understand I am at a higher standard here as far as breaking the rules. look...i do not edit posts...I look for spam and conduct rule breaches...I am not real fond of moderating posts or changing content...)
Steve if you are going to give up so easily do not trade. Frustration is good... deal with it...
Michael B.
Now in the FX circle when you speak about 1 lot it generally means 100,000 units. That is the professional language.
Now at other dealers a lot can mean a mini....then at some dealers there are sublots (also known as base 10) which are 1k units...and then again at some dealers you think in units and they offer trade tickets with the flexability of trading in one unit increrments. Please be advised that sublots can also be mini's...it is dealer dependant.
steve...when speaking with somebody about Forex it is generally acceptable to represent 1 lot to be equal to 100, 000 units...now if you are speaking with somebody that trades at the same dealer as you...then you can re-translate. I do not want to confuse you and I am aware of FXCM and how they are. I freely can speak about FXCM as they are a sponsor here, and I am sure you understand I am at a higher standard here as far as breaking the rules. look...i do not edit posts...I look for spam and conduct rule breaches...I am not real fond of moderating posts or changing content...)
Steve if you are going to give up so easily do not trade. Frustration is good... deal with it...
Michael B.