Yes, the price you see in your chart for brent oil is per barrel. So you need to check how many barrels is 1 lot and then divide it by 10 and multiply the result to the open price to see the value of your order if you open 0.1 lot. You will know then how much you are exposed and risk.
I see contract size returned by MT4 for the BRENT chart is '1000' so i assume 1 lot is 1000 barrels.
lee42747 posted: divide it by 10 and multiply the result to the open price to see the value of your order if you open 0.1 lot.
1000/100=10 (100 because i trade lowest lot - 0.01) 10x50=500 (50 because that is my open price, i am selling at 50$/barrel)
lee42747 posted: You will know then how much you are exposed and risk.
Please how to discover the risk while my result is number '500'? And how to discover whether my account will not be wiped if the price goes to 80$/barrel at a conditions i mentioned in my 1st post? Thank you
@andromeda1 Yes, with your 0.01 lot order this is the value of your open position - 500 dollars. If you trade with 1:100 leverage, your required margin to hold this open position is 1% of 500 USD, so it is 5 dollars. So you will have 95 dollars free and your margin level will be 1900%. To see how much you risk of losing by a single negative price movement, you need to multiply it to the number of barrels in your position. In your case, if the price moves up by 1 dollar, you will lose 10 dollars. Therefore your account will be wiped up if the price moves up by just 10 USD, or to 60 USD. You won't even reach 80 USD. Of course how much you will end up having in your balance in case of a losing trade like that depends on the stop out level set by your broker. If it is set to 100%, for example, your order will be automatically closed when the price reaches 59.5 USD and you will have 5 dollars left. I hope this makes sense.
@andromeda1 What I read here in the comments is good but can you change the title of this thread as it does not make sense - you will not lose if the price meets your expectations, unless you just trade to lose 😄 Otherwise it sounds weird...
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