Calculating risk

If you have $ 200 on the balance sheet, no matter how much credit you use to carry out financial transactions. You should not increase the lot immediately and for many. Do not use the standard size of lots for mini accounts (1 standard lot is 10 000 units), which provided the majority of Forex traders, because such a mini account can cost you dearly. It is better if you put a lot at stake in 1000, so you can greatly reduce the risks in online Forex trading currency, that allows you to achieve positive results, even if the beginning of your trade will begin with a continuous loss.

When you invest $ 200 in the ratio of 1:500, you get the opportunity to operate with a virtual fund size of 100 000 dollars. If you are a lucky novice open standard lot size of 100 000 units, your risk is 10 Dollars per pip, which falls or rises. To delete your account, you will need 20 pip. Not very much. The 20 pip will also include the spread.

So, if you open a mini lot of 10 000 units, you risk $ 2 per pip. During the 20 pip your account will lose only $ 20.