Money management calculation.

Dear, it depends upon the percentage of risk that you want to take, spread between currencies and then based upon these values you calculate your lot size. If you have $100 and you want to take 5% risk, supposing the spread between currencies 3, pip as 10 then your lot size would be 0.013.

You has rules then you have great chance to loss money and you also can find margin call that means you will loss your all capital.So i think every trader should flow the money management to avoiding margin call.if you have 100 capital then you can make more

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Originally Posted by hosnim

While trading in forex it is good to have a financial plan to trade with.there alot of scriptt that can be programmed from the begininng to calculate for you the lot size tht you are able to trade in each position.i think that the calculation of money management is a must before each trade

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As a student you can work in forex as a part time worker but if you can spend more and more time in forex then it will be better for you to learn and to earn money from forex. You can work properly and successfully in forex after completing your study

The money management calculations are the ones that you are making to portion the money in the account for the divers trades that you want to act in the accounting.

completely different trader take completely different strategy out to mange the money. other then money management is a very important purpose in forex market. if you could have $200usd you lot size might be zero. 16 or zero. 1. you normally takes risk ten or fifteen %.

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Originally Posted by ruarbiasa

money management is the best tool to learn well because in money managemnet you decide how much lot size you trade so when you have alow lot size according to money management then no way you do not earn money but also yoiur trading account is safe .

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sometimes money management plan we have created the perfect be destroyed because of our psychology. therefore prior to making money management plan is recommended to practice psychology in advance.

I think money management depends on each trader by himself. He take risk to that amount, which if he loses, will not impact on his financial condition. Then use TP and SL based on his knowledge.

also one of the important part of the trading in forex, because everyone wants to know about it,as i am the newbie and therefore i also not know about the money management calculation process

the mony managment calculatons are the ons that u are makng tooo allocte the money oon the acoount foor the diferent trdes that u want tooo make on the acount....

really serious for us to be able to care the funds that we use to class with the suitable. if we had a top of $ 100, then we should be able to use the class 0.01 lot situation. This can belittle the peril of trading when we got the casualty.