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Originally Posted by MiniMe
if you have 1000$ and you bought 3 mini lots each is 0.1 then over one year
money = No. of lots x swap rate(.135 for minilot size 0.1) x 365 = 147.8 that is about 15% income in one year...
Now lets say the market went to its ever low value which is 80 and the current value is 116.77 so lets say the market went all the way against you that would be 116.77-80=36.77 that would be 3677 pips
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now let calc. (.3) lots x 3677= that is 1103.1 $
So in the worst case you will lose half of your money in 4 years time...
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Correct me if I’m wrong, but one mini lot (0.1) of USD/JPY moves at $0.84 per pip. If this is indeed correct, the loosing 3677 pips means you are out of $9266.04 (3 mini lots x $0.84 x 3677 pips) as opposed to your proposed $1103.1. This would imply that wipe-out would occur at ($1000 equity / (0.84 * 3) ) = -396 pips. i.e. the market would only need to fall 396 pips and your $1000 equity is gone, now compare that to annual volatility and I think your math’s are horribly skewed no matter how much swap you collect.