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Deciding on position size

Gary Sharp myfxpt com
Nov 02 2012 at 19:49
345 posts
j4byers posted:
In my opinion, your position size should be based on what you're prepared to lose. You need to know your stop loss, account margin available, and percentage of account to risk in order to calculate.

So a basic calculation would be:
Size = PercentRisk * AccountMargin / StopLossPoints

For example,

Size = 0.02 * 100,000 / 100
= 20 Lots

So if your stop loss of 100 points (10 pips) were to be hit, you would lose no more than $2,000 or 2% of your account.

Agree 100%!

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