What ideal lot should be used on a 50USD account with 1:20 leverage
- Thread starter Elison0
- Start date
Leverage ratio is just a limit to the size of position you can trade at a broker.
Changing the leverage to 1:100 isn't going to increase your profit/loss. It just increases the amount you're allowed to trade.
Base your lot size on how much you're willing to lose.
Trading .01 EURUSD is 1,000 units which is $.10 per pip.
If your SL is 20 pips you lose $2.
That's a 4% loss with a $50 account. Loss amount is up to you but many suggest a maximum loss of 2% which means your SL should be 10 pips since you're trading the minimum position size (.01) already.
Other traders are willing to use a higher % loss but you risk blowing the account easier.
Changing the leverage to 1:100 isn't going to increase your profit/loss. It just increases the amount you're allowed to trade.
Base your lot size on how much you're willing to lose.
Trading .01 EURUSD is 1,000 units which is $.10 per pip.
If your SL is 20 pips you lose $2.
That's a 4% loss with a $50 account. Loss amount is up to you but many suggest a maximum loss of 2% which means your SL should be 10 pips since you're trading the minimum position size (.01) already.
Other traders are willing to use a higher % loss but you risk blowing the account easier.
Since you have to ask, keep it at the smallest possible size. Even better: forget about it and don’t trade. 
Basically your max position size is 50*20=1000 USD which is 0.01 lot. Major fx brokers like HFM or Exness, if it's not a cent account offer 0.01 lot as min position size
With such a small account the only possibility is to learn scalping. But I warn you, scalping is the most difficult strategy of all. But also the one that teaches you the fastest of all.
1. You have to be prepared to lose it all many times over. I mean MANY TIMES before you learn.
2. Use 1/3 of your equity. I.E. a lot size of 333 USD. In this way you still can experiment with adding to it. Will you add to winners or to losers? HaHaHa ...
3. Alternatively, use 100% of your equity (= a lot of 1000 USD). You wil learn A LOT about yourself and your psychology.
WELCOME ABOARD, good progress and a lot of fun. It will not be fast.
PS. If you are serious about learning to scalp, observe waves. No Elliot waves, just common sense waves. Forget about trend, it has no meaning for scalping.
Observe wavelength and amplitude. It is all contained in there. Money management, timing, everything.
Forget about people talking about scalping as high frequency trading. This is BS and a direct path to lose.
Identify high probability situations and trade ONLY THOSE.
LOW FREQUENCY scalping is the way with a tiny account.
Hope this helps
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Lot size does not matter yet.
Small account, go big! Audacity is the key.
Like 5$ per trade
