Quote:
Originally Posted by koolit
Thanks, Archer.
10 lots = $10,000 out of $50,000 (20%). So I thought I was being safe for drawdowns. Correct? If I open an account with $1,000, and buy .2 lots ($200), would it give me enough margin for any drawdowns?
One more point, as my account grows and if I still buy fixed lot size, I would have more margin for large drawdowns. Correct? e.g. Account balance now is $79,000 and I am still buying 10 lots.
I am still learning, so would appreciate any feedback.
Thanks.
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You should listen to Archer,and avoid using more than 1 lot per 10k usd in account,if you use more than that you are in for nasty surprises..Take into account that ,for GBPUSD 1Lot(100k GBP) is ,as of now,202730 USD..So you are using 20.2 to 1 leverage,which is very high but workable..I would suggest that you use no more than 1 lot of anything GBP denominated for every 20k USD in account,1 Lot for anything USD denominated for every 10k USD in account,1 lot for EURXXX for every 13/15k USD in account..and so on
