Money management calculation.

[anzerg11]

Capital management to me is the most important thing in Forex because profits whenever largest capital are too many because there is a big difference

[pc1]

Yes, Money management is the important factor in Forex trading. If any one want to be a best trader in Forex market then need calculation of money management. Because how amount are you invest in Forex , How to separate money from Forex market. It is important Forex Forex trading.
Hello Every Body.

[rupabd]

A simple possibility is that you decide which pair is invested in money management is an important issue in the forex market. Another dealer through another strategy to mange money. Then you look at the way the couple moved everyday mishaps. I do not, even if you have the process of calculating the cash management, share any knowledge about it.

[Mariem]

The thing that is important in my money management is that no matter if I used high lot size or small lot size,I only open one position one at a time. That allows me to manage my equity and not panic too quickly when my position is floating in negative.

[roppo]

If you do not want to lose more money than you like, you should always calculate the risk per trade you start. Most accounts that run down to zero are underfunded and the traders risked too much of their account per trade. It is wise not to risk more than 1-5 % of it, however.

Let us say you have $200 in your micro account.



Risk per trade

Calculation

Amount that can

be risked per trade

1 %

$200/100�1

$2.00

2 %

$200/100�2

$4.00

3 %

$200/100�3

$6.00

4 %

$200/100�4

$8.00

5 %

$200/100�5

$10.00

Now you know the amounts that you can risk per trade, which means you need to calculate your stop loss accordingly, depending on the value of the pips in a trade.

Pip is an abbreviation that means �percentage in point�.

A standard lot is 100,000 unities of a currency.

A mini lot is 10,000 unities of a currency.

A micro lot is 1,000 unities of a currency.

Risk per trade

Amount that can be risked per trade

Calculation

for a micro account

Pips
(for EURUSD)

1 %

$2.00

$2.00/$1,000 = 0.0020

20

2 %

$4.00

$4.00/$1,000 = 0.0040

40

3 %

$6.00

$6.00/$1,000 = 0.0060

60

4 %

$8.00

$8.00/$1,000 = 0.0080

80

5 %

$10.00

$10.00/$1,000 = 0.0100

100

So if you want to risk 1 % of your $200.00 in a micro account, you should set your stop loss at 20 pips for the EURUSD and other currencies where a pip is 0.0001 of the currency.

If you want to risk, let us say 3 % of your $200.00, you should set your stop loss at 60 pips.

[ratonbiswas159]

Brass should be the assets of a quantify when you start to operate at forex in sect to foreclose us from try and execute to a chance of disturbing losses, so the counseling and management of the pedagogue of the most valuable aim in the comic of forex.

[mousahledka]

I find that everyone is panicked o floosing his hardly earned money. Todays the money is the exclusive entity which is the beggary of everyone and having no money as an implementations as bloldless. That is the important cerebrate fkr all taders to joystick with their jobs , businesses !!

[shahidkapur22]

The money management calculations are the ones that you are making to allot the money in the account for the other trades that you poverty to act in the invoice.

[hitam]

Management of forex accounts is obtainable ANy investment is an investment quantity of cash in currency mercantilism account is opened electronically then the ability of lawyer Account Manager to execute all transactions on your account

[rozak]

I thunk money management is 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.

It is true indeed I think money is the basic thing menejement to do a trader, so we grabbed the profit with the calculation that, so should we can multiply capital as big as possible but with the margin as much as possible, then I think it is a safe and very safe for a trader, but it does give us a nice development.