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How to calculate how much $ i loose if the price will match my expectation?

andromeda1
Dec 05 2016 at 22:27
108 posts
Hello,

lets say i have 1:200 ECN Pro account with FXOpen $100 balance and i will execute only one SELL trade on BRENT chart in Metatrader 4

SELL @ price 50.00 (usd/barel?), BRENT

I expect that worst scenario before i reach 40.00 TAKE PROFIT will be price 80.00, so i would like to know what will be my account money/margin(?) at that 80.00 price.

What is the fast/easy way to discover that?

How do you calculate this quickly? I am a newbie. Thank you

vontogr (togr)
Dec 06 2016 at 12:44
4862 posts
Lets say you buy 1 lot eurusd (100,000 EUR)
Without leverage your margin is 107,700 USD
With 1:200 leverage your margin is 538.5
The margin required is balance needed just to open trade.

Further cost of opening trades - spread and commission. Lets say zero comm and spread of 1.0 pip. So at the moment you open trade
you pay $10 to the broker.

For your question - you need to specify what amount you are going to trade.

andromeda1
Dec 06 2016 at 14:10
108 posts
togr posted:
For your question - you need to specify what amount you are going to trade.

I will use lowest amount - 0.01 lot.. 😐

Jay (lee42747)
Dec 08 2016 at 11:00
49 posts
andromeda1 posted:
SELL @ price 50.00 (usd/barel?), BRENT


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.

andromeda1
Dec 09 2016 at 10:53
108 posts
lee42747 posted:
check how many barrels is 1 lot

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

Jay (lee42747)
Dec 22 2016 at 13:05
49 posts
@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.

Nina (NEEnah)
Dec 27 2016 at 12:19
71 posts
@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...

Dave (dragonEA)
Jan 04 2017 at 08:12
46 posts
I use simple formula like this to calculate risk

lotsize = (risk/10) / 102 * availablemoney(equity) / stoploss(in pips) / Lot Step(example : 2 for 0.01 minimum lot ) * Lot Step;

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